Explain media reporting

Subject: Explain media reporting

Date of events:2017/11/12

Contents:

1.Date of occurrence of the event:2017/11/12

2.Company name: Hon Hai Precision Ind. Co. Ltd

3.Name of the reporting media: Commercial Times

4.Content of the report:

Hon Hai signed a contract to invest US$10 billion to build plant in Wisconsin, USA

5.Countermeasures:

5.1 AFE, Inc, the Company's subsidiary, signed a tax incentive contract with Wisconsin Economic Development Corporation (WEDC). AFE, Inc and affiliated companies expect to invest US$10 billion and create 13,000 local jobs in Wisconsin. The following investments by the Company's subsidiaries will be announced in compliance with related regulations.

5.2 Compensation of up to US$1,098 million will be paid to Wisconsin if the Company's subsidiaries fail to fulfill the contract terms after the tax incentives are granted to them.