Capital Reduction through Cancellation RSA

Subject: Capital Reduction through Cancellation by Redeeming Portion of Restricted Stock Awards (RSA) Initially Issuance in 2014

1. Date of the board of directors resolution: 2016/05/12

2. Reason for the capital reduction: The RSA was submitted to the Financial Supervisory Commission for effective registration on August 26th 2014 and 17,460,000 shares were being issued accordingly. The Company is proposed to redeem the shares of which since some employees have resigned, retired or failed to meet the vesting condition in 2015.

3. Amount of the capital reduction: NT$ 44,400,000

4. Cancelled shares: 4,440,000 shares

5. Capital reduction ratio: around 0.144% of the share capital

6. Share capital after the capital reduction: NT$ 30,810,028,280

7. Scheduled date of the shareholders' meeting: N/A

8. Estimate listed shares, the ratio of listed shares to outstanding shares, after the capital reduction: N/A

9. Countermeasures of the aforesaid estimate change in shareholding after the capital reduction: N/A

10. Any other matters that need to be specified: It is proposed to set May 20, 2016 as record date of capital reduction.