Modification of the China investment structure

Subject:Modification of the China investment structure

Date of events:2018/11/22

Contents:

1.Date of occurrence of the event:2018/11/22~2018/11/22

2.Method of the present increase (decrease) in investment:

Modification of the China investment structure is as follows:

The Company's subsidiary FOXCONN (FAR EAST) LIMITED-CY, that invests in HIGH PRECISION HOLDINGS LIMITED-CY that invests GENERAL INTERFACE SOLUTION (GIS) HOLDING LIMITED (shareholding ratio 22.54%) to transfer the equity of three 100% owned Chinese subsidiaries, Interface Optoelectronics (Shenzhen) Co., Ltd., Interface Technology (ZhengZhou) Co., Ltd. and Interface Optoelectronics (Wuxi) Co., Ltd., to Interface Technology (ChengDu) Co., Ltd., according to the evaluation amount of three Chinese companies evaluated as of 30 September, 2018, and Interface Technology (ChengDu) Co., Ltd. shall issue an additional equity of US$70,229.3 thousand accordingly as the consideration for payment. After the completion of the equity transfer, Interface Technology (ChengDu) Co., Ltd. will directly hold 100% equity of the aforesaid three Chinese companies.

3.Transaction volume, price per unit, and total monetary

amount of the transaction:US$70,229.3 thousand

4.Company name of the invested mainland Chinese company:

Interface Technology (ChengDu) Co., Ltd.

Interface Optoelectronics (Shenzhen) Co., Ltd.

Interface Technology (ZhengZhou) Co., Ltd.

Interface Optoelectronics (Wuxi) Co., Ltd.

5.Paid-in capital of said invested mainland Chinese company:

Interface Technology (ChengDu) Co., Ltd.:US$248,500 thousand

Interface Optoelectronics (Shenzhen) Co., Ltd.:US$96,200 thousand

Interface Technology (ZhengZhou) Co., Ltd.:US$2,500 thousand

Interface Optoelectronics (Wuxi) Co., Ltd.:US$13,000 thousand

6.Amount of new capital increment currently planned

by said invested mainland Chinese company:

Interface Technology (ChengDu) Co., Ltd.:US$70,229.3 thousand

7.Main business items of said invested mainland Chinese

company:

Interface Technology (ChengDu) Co., Ltd.:Manufacture and sales of TFT-LCDdisplay and materials of display.

Interface Optoelectronics (Shenzhen) Co., Ltd.:Developing, manufacture and sales of new type of flat panel display, display and its components and providing after sale services.

Interface Technology (ZhengZhou) Co., Ltd.:Manufacture and sales of TFT-LCD display and materials of display.

Interface Optoelectronics (Wuxi) Co., Ltd.:Manufacture and sales of TFT-LCD display and materials of display.

8.Type of CPA opinion issued for the financial statement

of said invested mainland Chinese company for the most

recent fiscal year:

All of four Chinese companies:Unqualified opinion.

9.Net worth of said invested mainland Chinese company on

the financial statement for the most recent fiscal year:

Interface Technology (ChengDu) Co., Ltd.:US$14,552,897 thousand

Interface Optoelectronics (Shenzhen) Co., Ltd.:US$5,532,645 thousand

Interface Technology (ZhengZhou) Co., Ltd.:US$32,581 thousand

Interface Optoelectronics (Wuxi) Co., Ltd.:US$508,634 thousand

10.Amount of profit/loss of said invested mainland Chinese

company on the financial statement for the most recent

fiscal year:

Interface Technology (ChengDu) Co., Ltd.:US$5,167,121 thousand

Interface Optoelectronics (Shenzhen) Co., Ltd.:US$2,343,618 thousand

Interface Technology (ZhengZhou) Co., Ltd.:US$9,204 thousand

Interface Optoelectronics (Wuxi) Co., Ltd.:US$134,927 thousand

11.Amount of actual investment to date in said invested

mainland Chinese company:

Interface Technology (ChengDu) Co., Ltd.:US$74,320,000 thousand

Interface Optoelectronics (Shenzhen) Co., Ltd.:US$7,413,000 thousand

Interface Technology (ZhengZhou) Co., Ltd.:US$225,400 thousand

Interface Optoelectronics (Wuxi) Co., Ltd.:US$3,213,600 thousand

12.Counterparty to the transaction and its relationship

to the Company:

Four Chinese companies are 100% directly owned by the Company

shift in investment shareholding ratio 22.54% GENERAL INTERFACE

SOLUTION (GIS) HOLDING LIMITED.

13.The manner of deciding on this transaction, the reference basis for the decision on price and the decision-making department:

The manner of deciding on this transaction, the reference basis for

The decision on price: evaluation report.

Decision-making department:

GENERAL INTERFACE SOLUTION (GIS) HOLDING LIMITED Board of Directors

14.Concrete purpose of the acquisition or disposal:

In order to improve business performance, reduce management costs and

expand economic scope, the plan to modify the China investment

structure.

15.Total amount of mainland China area investment

(including the present investment) approved by the

Investment Commission to date:US$11,486,354,489.05

16.Ratio of the total amount of investment (including

the present investment) in the mainland China area approved

by the Investment Commission to date to the paid-in capital

on the financial statement for the most recent period:258.51%

17.Ratio of the total amount of investment (including

the present investment) in the mainland China area

approved by the Investment Commission to date to the

total assets on the financial statement for the most

recent period:10.96%

18.Ratio of the total amount of investment (including

the present investment) in the mainland China area approved

by the Investment Commission to date to the shareholders'

equity on the financial statement for the most recent period:31.14%

19.Total amount of actual investment in the mainland China

area to date:US$10,557,071,452.67

20.Ratio of the total amount of actual investment in the

mainland China area to date to the paid-in capital on

the financial statement for the most recent period:237.60%

21.Ratio of the total amount of actual investment in the

mainland China area to date to the total assets on the

financial statement for the most recent period:10.07%

22.Ratio of the total amount of actual investment in the

mainland China area to date to the shareholders' equity

on the financial statement for the most recent period:28.62%

23.Amount of recognized profits and losses on investment in

the mainland China area for the most recent three fiscal years:

2015:NT$95,073,703 thousand.

2016:NT$135,546,383 thousand.

2017:NT$63,448,344 thousand.