Wafer Works Corp. approved financial statements and private placement at the 2014 Annual Shareholders’ Meeting

Taoyuan, Taiwan, June 19^th, 2014

Wafer Works Corp. (6182 TT) held the corporation’s 2014 annual shareholders’ meeting at the corporation’s headquarter office in Long-Tan, Taoyuan today. At today’s meeting, shareholders approved the business operations report and financial statements for fiscal year 2013, and ordinary share issuance of private placement. For the fiscal year 2013, Wafer Works Corp. reported a consolidated revenue of NTD$5,446 million, with YoY growth of 18.4%, and net loss of NTD$1.40 per share. Since January 2014, the continued improvement in operating efficiency of Wafer Works Corp.’s new Long-Tan fabrication plant contributed to the steady monthly revenue increases. The 1 st quarter consolidated revenue for fiscal year 2014 achieved NTD$1,365 million, representing 24.2% growth YoY.

In addition to its existing discrete device product market, Wafer Works Corp. is aggressively extending applications to the 8” silicon wafer in analog IC and other niche markets. Recently, the company gained significant achievements in the MEMS market. According to Yole Development (2013), worldwide MEMS market is forecasted to grow to US$22 billion in FY 2018 from US$12 billion in FY 2012, with CAGR of 12.7%; as the widespread adoptions by mobile devices constitute to the main growth driver. Wafer Works has gained MEMS orders from tier-1 foundry and IDM both in 150mm and 200mm silicon wafers; furthermore, Wafer Works has launched win-win cooperation with international MEMS vendors to optimize process technology and cost competitiveness.

According to Forrester's forecast, IoT (Internet of Things) will create the next trillion dollar market for telecommunication companies and industries. Following the rapid expansion of IoT, ETSI (European Telecommunications Standards Institute) categorizes IoT architecture into 3 levels; namely, Device, Connect and Application. This expansion will boost substantial market demands for MEMS and sensor ICs to create broad business opportunities. At the same time, mobile devices connecting to cloud networks, with the restrictions of power charges and energy storage, will also generate high business demand and will drive new business growth for Wafer Works’ ultra-low resistivity silicon wafer.

With the positive momentum of the industry's developments, Wafer Works Corp. will focus on three major business strategies; first, to continue the vigorous development of its ultra-low resistivity silicon wafers for satisfying the robust demands for lower power consumption on mobile devices. Second, to penetrate into logic ICs, analog ICs and MEMS ICs with the light dopant and P type 200mm silicon wafers for broadening product portfolio. Third, to complete product lines by allying with strategic partners to strengthen critical roles in semiconductor value chain. The full execution of the foregoing strategies is expected to improve revenue, profitability, market share and long-term competitiveness. As China becomes the global semiconductor manufacturing and consumption center, Wafer Works Corp. will actively leverage its accumulated experiences and competitive advantages in operating in China's diverse environment, and couple with favorable policies and local resources, to create mutual beneficial business development and new business opportunities.