Siliconware Precision Industries : Reports Unaudited Consolidated Financial Results for the Third 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, Oct 24, 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 third quarter of 2017 were NT$ 21,955 million, which represented a 7.5% growth in revenues compared to the second quarter of 2017, and remained flat compared to the third quarter of 2016. SPIL reported a net income of NT$ 2,257 million for the third quarter of 2017, compared with a net income of NT$ 2,158 million and a net income of NT$ 2,692 million for the second quarter of 2017 and the third quarter of 2016, respectively.

Basic earnings per share for this quarter was NT$ 0.72, and diluted earnings per ordinary share was NT$ 0.71. Basic earnings per ADS for this quarter was US$ 0.12, and diluted earnings per ADS was US$ 0.12.

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

• For the third quarter of 2017, net revenues from IC packaging were NT$ 18,705 million and represented 85% of total net revenues. Net revenues from testing operations were NT$ 3,250 million and represented 15% of total net revenues.

• Cost of goods sold was NT$ 17,140 million, representing an increase of 2.8% compared to the second quarter of 2017 and an increase of 1.4% compared to the third quarter of 2016.

• Raw materials costs were NT$ 7,282 million for the third quarter of 2017 and represented 33.2% of total net revenues, whereas raw materials costs were NT$ 7,121 million and represented 34.9% of total net revenues for the second quarter of 2017.

• The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 200 million.

• Gross profit was NT$ 4,815 million for the third quarter of 2017, representing a gross margin of 21.9%, which increased from a gross margin of 18.4% for the second quarter of 2017 and decreased from 23.0% for the third quarter of 2016.

• Total operating expenses for the third quarter of 2017 were NT$ 2,074 million, which included selling expenses of NT$ 265 million, administrative expenses of NT$ 809 million and R&D expenses of NT$ 1,000 million. Total operating expenses represented 9.4% of total net revenues for the third quarter of 2017.

  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 112 million.

• Operating income was NT$ 2,741 million for the third quarter of 2017, representing an operating margin of 12.5%, which increased from 9.2% for the second quarter of 2017 and decreased from 13.6% for the third quarter of 2016.

• Non-operating items:

  • Our non-operating expense was NT$ 183 million, including net losses of NT$ 181 million on fair value change of financial liabilities at fair value through profit or loss.

• Net income before tax was NT$ 2,558 million for the third quarter of 2017, which decreased from a net income before tax of NT$ 2,950 million for the second quarter of 2017 and decreased from a net income before tax of NT$ 3,160 million for the third quarter of 2016.

• Income tax expense was NT$ 301 million for the third quarter of 2017, compared with income tax expense of NT$ 792 million for the second quarter of 2017 and income tax expense of NT$ 468 million for the third quarter of 2016.

• Net income was NT$ 2,257 million for the third quarter of 2017, which increased from a net income of NT$ 2,158 million for the second quarter of 2017 and decreased from a net income of NT$ 2,692 million for the third quarter of 2016.

• Total number of shares outstanding was 3,116 million shares as of Sep. 30, 2017. Basic earnings per share for this quarter was NT$ 0.72, and diluted earnings per ordinary share was NT$ 0.71. Basic earnings per ADS for this quarter was US$ 0.12, and diluted earnings per ADS was US$ 0.12.

  Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 20,783 million as of Sep. 30, 2017 from NT$ 24,978 million as of June 30, 2017, and NT$ 19,177 million as of Sep. 30, 2016.

   Capital expenditures for the third quarter of 2017 totaled NT$ 3,587 million.

• Total depreciation expenses for the third quarter of 2017 totaled NT$ 3,695 million.

  IC packaging service:

• Net revenues from IC packaging operations were NT$ 18,705 million for the third quarter of 2017, which represented an increase of NT$ 1,060 million or 6.0% compared to the second quarter of 2017.

• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 29%, 17% and 39%, respectively, of total net revenues for the third quarter of 2017.

• As of Sep. 30, 2017 we had 8,456 wirebonders installed, of which 120 were added and 169 were disposed in the third quarter of 2017.

  IC testing service:

• Net revenues from testing operations were NT$ 3,250 million for the third quarter of 2017, which represented an increase of NT$ 470 million or 16.9% compared to the second quarter of 2017.

• As of Sep. 30, 2017 we had 571 testers installed, of which 16 were added and 1 were disposed in the third quarter of 2017.

• Breakdown by end applications:

  By application	3Q17	2Q17
  Communication	65%	68%
  Computing	12%	11%
  Consumer	21%	19%
  Memory	2%	2%

• Breakdown by packaging type: