Here are the reasons why this may benefit IMOS. However, I do not think it will be immediate. It will be most likely show up in Feb or March rev.
1. Though there may not be overlap business for K7, other two plants affected may benefit IMOS.
2. Other competitors who are pursuing ASE big clients may allow IMOS to absorb the second tier clients.
3. Most importantly, this is a damage to ASE reputation. If this get worse, clients will leave pretty quickly as they do not want to get involved in environmental lawsuits. They are VERY sensitive to environmental issues due to the history of this industry.
Just my humble opinion. Have been an IMOS investor for a long time and would like to wish fellow investors a great holidays ahead. Enjoy Vegas!
Based on Craig Hallum note in their research report, IMOS is about 84% of IMOST. Specifically in their note, they mentioned that $26.1 in IMOST is equivalent to $21.95. Not sure what has changed then for a lower conversion based on your calculation.