SAS with new spin-off Semiconductor Unit

The spin-off proposals shall be submitted to annual shareholders’ meeting to be discussed on June 17,2011. Taiwan Sapphire is with the capital of NT$ 400 million. The business value of Taiwan Sapphire is NT$ 1,600 million calculated by subtracting the liabilities from the assets. Taiwan Sapphire will issue 40 million shares to SAS by NT$ 40 per share. GlobalWafers is with the capital of NT$1,800 million. The business value of GlobalWafers is NT$ 6,930 million calculated by subtracting the liabilities from the assets. GlobalWafers will issue 180 million shares to SAS by NT$ 38.5 per share. The record date of the spin-off is anticipated to be October 1,2011. Taiwan Sapphire and GlobalWafers will be both 100% owned subsidiaries by SAS, once the spin-off completion. For the long time, the three business units of SAS always have better operating performance than peers. The Semiconductor business unit maintains higher growth rate of turnover than global semiconductors’ average growth rates and its growth rate is as high as 60% last year. Furthermore, GlobiTech Inc.(GTI) is currently the largest professional silicon epitaxial manufacturer in USA. SAS plans to expand the semiconductor wafer capacity of Taiwan, China, and USA plants in 2011. Sapphire business unit founded in 2007 maintains the remarkable 300% growth rate in past years. In the early 2011, the unit developed the biggest sapphire crystal in the world and intents to build its owned plant in 2011. The turnover of Solar business unit accounts for above 70% of SAS revenue. Also, in the last 7 years, the unit doubled its capacity year by year. SilFab, the Italian-based company, invested in 2008 by SAS, already build solar power plants whose generation capacities are over 25 MW in European. Recently SAS, Solartech Energy Corp., and Mrs. Cher Wang, the HTC chairwoman, set up a join venture, Sino Solar Corp. and invested in Powertec Energy Corp., to ensure polycrystalline silicon material supplent. These tactics are to enhace the Solar business stablilty and rapid growing in the future.  Once spin-off completion, Solar, Semiconductor, and Sapphire business units shall be more competitiveness, utilize resource efficiently, and have higher visibility in the industries. While the overall operating performance will move to a better level after spin-off, SAS can create and offer more benefits to shareholders.