ChipMos to cut capex nearly in half

ChipMos (IMOS) has set a 2014 capex budget of NT$1.8B ($60.2M), nearly 50% below a 2013 budget level of NT$3.5B. With the chip packaging/testing services firm's 2014 revenue consensus standing at $697M, that mean ChipMos may end up spending ~9% of 2014 revenue on capex.

ChipMos invested aggressively in ramping LCD driver IC testing capacity in 2013. Its 2014 capex will be directed towards a mixture of investments in 12" chip wafer bumping, high-end memory chip packaging, and LCD driver IC packaging/testing.

Comments (2)
  • Valuable Insights
    , contributor
    Comments (478) | Send Message
    This should result in free cash flow approaching $4 per share and will result in massive buybacks and/or dividends.
    20 Dec 2013, 05:21 PM Reply Like
  • Geoffrey Harris
    , contributor
    Comments (837) | Send Message
    Imos has not done well with bbs and dividends. The depreciation story did not help much either. So this reduction in ce will reduce costs as did the reduction in depreciation which will lead to increased cash flows, earnings, and operating margins but not increased revenues. We need to see increased revenues too to drive up the share price of imos.
    21 Dec 2013, 01:56 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs