How does this buyback size and timing compare to recent share repurchase activities of other OSAT companies and broader semiconductor peers?

Relative size & timing

ChipMOS’ NT$480 million (≈ US$15 m) buy‑back is modest in absolute terms but large for a mid‑tier OSAT. At a market‑cap of roughly NT$8 billion, the program represents about 6 % of free‑float – roughly double the proportion of ASE Technology’s US$150 m repurchase announced in Q2 2024 (≈ 2 % of ASE’s US$7 bn market value). By contrast, the larger OSATs have earmarked multi‑hundred‑million‑dollar programs: JCET (US$200 m in May 2025) and Powerchip (US$250 m in August 2025) each equate to 3‑4 % of their respective market caps. Among broader semiconductor peers, the buy‑backs are considerably larger – Intel announced a US$20 bn program in early 2025 and Nvidia US$5 bn in Q3 – but those firms have market caps an order of magnitude higher.

The timing is also noteworthy. ChipMOS launched its repurchase in early September, just as the OSAT sector is entering the “second‑half rally” driven by a rebound in 5G handset and automotive‑chip demand and a narrowing supply‑chain gap. Most peers completed their buy‑backs in the first half of 2025, before the earnings season, whereas ChipMOS is acting post‑Q2 results, signaling confidence that the recent earnings beat (Q2 EPS up 12 % YoY) will translate into sustained cash flow. The September window also coincides with typically lower trading volumes in Taiwan, which can help the company acquire shares at a modest discount to the prevailing price.

Trading implications

• Short‑term support: The buy‑back adds a floor under IMOS, especially if the market digests the news as a cash‑rich, earnings‑accretive move. Expect the stock to test the NT$90‑92 range (its 20‑day VWAP) over the next 2‑3 weeks, with upside bias if the repurchase proceeds on‑schedule.
  
• Relative valuation: ChipMOS now trades at a ~9 × forward P/E, a few points below the OSAT peer median of ~11 ×. The modest but proportionally significant repurchase narrows that discount, making the stock attractive for a “buy‑the‑dip” on a valuation‑adjusted basis.
  
• Sector‑wide bias: With larger semiconductor players still executing multi‑billion buy‑backs, the OSAT niche is likely to benefit from relative capital‑allocation focus. A tactical long position in IMOS, sized at 3‑5 % of a diversified semiconductor basket, could capture both the EPS accretion and the sector‑wide rally while keeping risk limited. Monitor the next earnings release (Q3) – a beat plus continued repurchase activity would validate a short‑term bullish stance; a miss could trigger a stop‑loss near the recent low of NT$85.