Siliconware Precision Industries : Reports Unaudited Consolidated Financial Results for the First Quarter of 2017

No. 123, Sec. 3, Da Fong Rd., Tantzu, Taichung , Taiwan 42749 www.spil.com.tw

Eva Chen, VP of Finance Div. SPILIR@spil.c om.tw

+886- 4- 25341525#1536

Byron Chiang, Spokesperson Spokesperson@spil.c om.tw

+886- 3- 5795678#3676

Taichung, Taiwan, Apr 26, 2017─Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the first quarter of 2017 were NT$ 19,552 million, which represented a 11.8% decline in revenues compared to the fourth quarter of 2016 and a 1.3% growth in revenues compared to the first quarter of 2016. SPIL reported a net income of NT$ 997 million for the first quarter of 2017, compared with a net income of NT$ 2,829 million and a net income of NT$ 1,604 million for the fourth quarter of 2016 and the first quarter of 2016, respectively.

Basic earnings per share for this quarter was NT$ 0.32, and diluted earnings per ordinary share was NT$ 0.15. Basic earnings per ADS for this quarter was US$ 0.05, and diluted earnings per ADS was US$ 0.02.

All figures were prepared in accordance with T-IFRS on a consolidated basis.

• For the first quarter of 2017, net revenues from IC packaging were NT$ 17,026 million and represented 87% of total net revenues. Net revenues from testing operations were NT$ 2,526 million and represented 13% of total net revenues.

• Cost of goods sold was NT$ 15,795 million, representing a decline of 6.8% compared to the fourth quarter of 2016 and an increase of 3.0% compared to the first quarter of 2016.

• Raw materials costs were NT$ 6,725 million for the first quarter of 2017 and represented 34.4% of total net revenues, whereas raw materials costs were NT$ 7,413 million and represented 33.5% of total net revenues for the fourth quarter of 2016.

• The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 91 million.

• Gross profit was NT$ 3,757 million for the first quarter of 2017, representing a gross margin of 19.2%, which decreased from a gross margin of 23.6% for the fourth quarter of 2016 and decreased from 20.6% for the first quarter of 2016.

• Total operating expenses for the first quarter of 2017 were NT$ 2,017 million, which included selling expenses of NT$ 248 million, administrative expenses of NT$ 804 million and R&D expenses of NT$ 965 million. Total operating expenses represented 10.3% of total net revenues for the first quarter of 2017.

  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 50 million.

• Operating income was NT$ 1,740 million for the first quarter of 2017, representing an operating margin of 8.9%, which decreased from 13.7% for the fourth quarter of 2016 and decreased from 9.8% for the first quarter of 2016.

• Non-operating items:

  • Our non-operating expense was NT$ 478 million, including net foreign exchange losses of NT$ 313 million and net losses of NT$ 113 million on fair value change of financial liabilities at fair value through profit or loss.

• Net income before tax was NT$ 1,262 million for the first quarter of 2017, which decreased from a net income before tax of NT$ 3,392 million for the fourth quarter of 2016 and decreased from a net income before tax of NT$ 1,898 million for the first quarter of 2016.

• Income tax expense was NT$ 265 million for the first quarter of 2017, compared with income tax expense of NT$ 563 million for the fourth quarter of 2016 and income tax expense of NT$ 294 million for the first quarter of 2016.

• Net income was NT$ 997 million for the first quarter of 2017, which decreased from a net income of NT$ 2,829 million for the fourth quarter of 2016 and decreased from a net income of NT$ 1,604 million for the first quarter of 2016.

• Total number of shares outstanding was 3,116 million shares as of Mar 31, 2017. Basic earnings per share for this quarter was NT$ 0.32, and diluted earnings per ordinary share was NT$ 0.15. Basic earnings per ADS for this quarter was US$ 0.05, and diluted earnings per ADS was US$ 0.02.

  Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 23,611 million as of Mar 31, 2017 from NT$ 24,476 million as of Dec 31, 2016, and NT$ 25,406 million as of Mar 31, 2016.

   Capital expenditures for the first quarter of 2017 totaled NT$ 3,337 million.

• Total depreciation expenses for the first quarter of 2017 totaled NT$ 3,392 million.

  IC packaging service:

• Net revenues from IC packaging operations were NT$ 17,026 million for the first quarter of 2017, which represented a decrease of NT$ 2,380 million or 12.3% compared to the fourth quarter of 2016.

• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 28%, 17% and 42%, respectively, of total net revenues for the first quarter of 2017.

• As of Mar 31, 2017 we had 8,248 wirebonders installed, of which 410 were added and 158 were disposed in the first quarter of 2017.

  IC testing service:

• Net revenues from testing operations were NT$ 2,526 million for the first quarter of 2017, which represented a decrease of NT$ 246 million or 8.9% compared to the fourth quarter of 2016.

• As of Mar 31, 2017 we had 549 testers installed, of which 5 were added and 10 were disposed in the first quarter of 2017.

• Breakdown by end applications:

  By application	1Q17	4Q16
  Communication	70%	69%
  Computing	11%	12%
  Consumer	17%	17%
  Memory	2%	2%

• Breakdown by packaging type: