Orders overflowing, 8-inch capacity doubles in 2018

Taoyuan, Taiwan Jun 15^th,2017

Wafer Works held the annual shareholders meeting at its headquarters in Long-Tan today. In the meeting, the business report and financial statements were approved and the private placement was adopted.

Chairman Pat Chiao said, in response to the rapid change of global market and to enhance the competitiveness of the company, in 2016 Wafer Works recognized asset impairments to stay focus on the semiconductor industry and attempt to double its substrate capacity by employing exterior funding to build a 8-inch fab with 20,000 piece monthly capacities in Henan, China, which is expected to be commenced in July and to be completed in Q1, 2018. In addition, the ongoing alliance project will increase 15% in epitaxy wafer supply. By manifold approaches, Wafer Works will be able to grab the opportunity of local supplying and gain market share accordingly.

Wafer Works this year put its effort on optimizing product portfolio and maximizing production capacity, accompanying with the rising price of substrate wafer to reach the goal of increasing revenue and profits simultaneously. Despite the negative impact of exchange rate, Wafer Works became profitable and profit from all subsidiaries in China hit record high in Q1. Regarding the status of new product development, the long-developed SOI product will make its debut in Q3 2017 and the pace for 12 inch substrate development will be accelerated in the 2^nd half of 2017 by obeying its ”8-inch proceeds, followed by 12-inch” policy.