Capital Reduction through Cancellation RSA

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

To which item it meets--article 4 paragraph xx: 11

Date of events: 2016/08/11

Contents:

1. Date of the board of directors resolution: 2016/08/11

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 or retired.

3. Amount of the capital reduction: NT$ 2,700,000

4. Cancelled shares: 270,000 shares

5. Capital reduction ratio: around 0.009% of the share capital

6. Share capital after the capital reduction: NT$ 30,807,328,280

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

8. Estimate listed common shares after the capital reduction: 3,080,732,828 shares

9. The estimate ratio of listed shares to the company's issued common shares, after the capital reduction: N/A

10. Countermeasures of the lower circulation in shareholding, if the aforesaid estimate listed common shares does not reach 60 million shares and the ration does not reach 25% after the capital reduction: N/A

11. Any other matters that need to be specified: It is proposed to set August 18st, 2016 as record date of capital reduction