Siliconware Precision Industries : Reports Unaudited Consolidated Financial Results for the Second 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, July 25, 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 second quarter of 2017 were NT$ 20,425 million, which represented a 4.5% growth in revenues compared to the first quarter of 2017 and a 5.8% decline in revenues compared to the second quarter of 2016. SPIL reported a net income of NT$ 2,158 million for the second quarter of 2017, compared with a net income of NT$ 997 million and a net income of NT$ 2,809 million for the first quarter of 2017 and the second quarter of 2016, respectively.

Basic earnings per share for this quarter was NT$ 0.69, and diluted earnings per ordinary share was NT$ 0.49. Basic earnings per ADS for this quarter was US$ 0.11, and diluted earnings per ADS was US$ 0.08.

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

• For the second quarter of 2017, net revenues from IC packaging were NT$ 17,645 million and represented 86% of total net revenues. Net revenues from testing operations were NT$ 2,780 million and represented 14% of total net revenues.

• Cost of goods sold was NT$ 16,668 million, representing an increase of 5.5% compared to the first quarter of 2017 and an increase of 0.5% compared to the second quarter of 2016.

• Raw materials costs were NT$ 7,121 million for the second quarter of 2017 and represented 34.9% of total net revenues, whereas raw materials costs were NT$ 6,725 million and represented 34.4% of total net revenues for the first quarter of 2017.

• The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 225 million.

• Gross profit was NT$ 3,757 million for the second quarter of 2017, representing a gross margin of 18.4%, which decreased from a gross margin of 19.2% for the first quarter of 2017 and decreased from 23.5% for the second quarter of 2016.

• Total operating expenses for the second quarter of 2017 were NT$ 1,883 million, which included selling expenses of NT$ 241 million, administrative expenses of NT$ 709 million and R&D expenses of NT$ 933 million. Total operating expenses represented 9.2% of total net revenues for the second quarter of 2017.

  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 127 million.

• Operating income was NT$ 1,874 million for the second quarter of 2017, representing an operating margin of 9.2%, which increased from 8.9% for the first quarter of 2017 and decreased from 13.3% for the second quarter of 2016.

• Non-operating items:

  • Our non-operating income was NT$ 1,076 million, including net gains of NT$ 721 million on fair value change of financial liabilities at fair value through profit or loss, cash dividends of NT$ 156 million from ChipMos Taiwan, and net foreign exchange gains of NT$ 108 million.

• Net income before tax was NT$ 2,950 million for the second quarter of 2017, which increased from a net income before tax of NT$ 1,262 million for the first quarter of 2017 and decreased from a net income before tax of NT$ 3,234 million for the second quarter of 2016.

• Income tax expense was NT$ 792 million for the second quarter of 2017, compared with income tax expense of NT$ 265 million for the first quarter of 2017 and income tax expense of NT$ 425 million for the second quarter of 2016.

• Net income was NT$ 2,158 million for the second quarter of 2017, which increased from a net income of NT$ 997 million for the first quarter of 2017 and decreased from a net income of NT$ 2,809 million for the second quarter of 2016.

• Total number of shares outstanding was 3,116 million shares as of June 30, 2017. Basic earnings per share for this quarter was NT$ 0.69, and diluted earnings per ordinary share was NT$ 0.49. Basic earnings per ADS for this quarter was US$ 0.11, and diluted earnings per ADS was US$ 0.08.

  Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 24,978 million as of June 30, 2017 from NT$ 23,611 million as of Mar 31, 2017, and NT$ 24,508 million as of June 30, 2016.

   Capital expenditures for the second quarter of 2017 totaled NT$ 3,703 million.

• Total depreciation expenses for the second quarter of 2017 totaled NT$ 3,529 million.

  IC packaging service:

• Net revenues from IC packaging operations were NT$ 17,645 million for the second quarter of 2017, which represented an increase of NT$ 619 million or 3.6% compared to the first quarter of 2017.

• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 30%, 18% and 38%, respectively, of total net revenues for the second quarter of 2017.

• As of June 30, 2017 we had 8,505 wirebonders installed, of which 460 were added and 203 were disposed in the second quarter of 2017.

  IC testing service:

• Net revenues from testing operations were NT$ 2,780 million for the second quarter of 2017, which represented an increase of NT$ 254 million or 10.1% compared to the first quarter of 2017.

• As of June 30, 2017 we had 556 testers installed, of which 8 were added and 1 were disposed in the second quarter of 2017.

• Breakdown by end applications:

  By application	2Q17	1Q17
  Communication	68%	70%
  Computing	11%	11%
  Consumer	19%	17%
  Memory	2%	2%

• Breakdown by packaging type: