The company has reported unaudited net revenues of TWD18,311 million for the fourth quarter of 2008, down 37% year-over-year and down 29% sequentially. Net loss for the quarter totaled TWD800 million, down from net income of TWD3,704 million in 4Q07 and net income of TWD2,212 million in third quarter of 2008. Loss per share for the quarter was TWD0.15 (or $0.023 per ADS), compared to diluted earnings per share of TWD0.64 for 4Q07 and TWD0.41 for third quarter of 2008.

Results of Operations:

fourth quarter of 2008 Results Highlights:

Net revenue contribution from IC packaging operations (including module assembly), testing operations, and substrates sold to third parties was TWD14,005 million, TWD3,830 million and TWD476 million, respectively, and each represented about 76%, 21% and 3%, respectively, of total net revenues for the quarter.

Cost of revenues was TWD15,096 million, down 23% year-over-year and down 21% sequentially.

Raw material cost totaled TWD4,910 million during the quarter, representing 27% of total net revenues, compared with TWD7,370 million and 29% of net revenues in the previous quarter.

Labor cost totaled TWD2,863 million during the quarter, representing 16% of total net revenues, compared with TWD3,885 million and 15% of net revenues in the previous quarter.

Depreciation, amortization and rental expenses totaled TWD4,290 million during the quarter, up 4% year-over-year and up 3% sequentially.

Total operating expenses during fourth quarter of 2008 were TWD2,232 million, including TWD811 million in R&D and TWD1,421 million in SG&A, compared with operating expenses of TWD2,733 million in third quarter of 2008. The sequential decrease was primarily attributable to a decrease in salary and employee bonus adjustment in fourth quarter of 2008. Total operating expenses as a percentage of net revenues for the current quarter were 12%, up from 9% in 4Q07 and up from 11% in third quarter of 2008.

Operating profit for the quarter totaled TWD983 million, down from TWD3,896 million in the previous quarter. Operating margin decreased to 5% in fourth quarter of 2008 from 15% in third quarter of 2008.

In terms of non-operating items:

Net interest expense was TWD522 million, up from TWD421 million a quarter ago primarily due to a higher bank loan balances during the quarter.

Net foreign exchange loss of TWD166 million was primarily attributable to the appreciation of the U.S. dollar against the N.T. dollar.

Loss on equity-method investment of TWD125 million was primarily attributable to our investment in USI.

Other non-operating expenses of TWD693 million were primarily related to the severance pay of TWD270 million and loss from inventory valuation adjustment of TWD215 million. Total non-operating expenses for the quarter were TWD1,506 million, compared to TWD873 million for 4Q07 and TWD742 million for third quarter of 2008.

Loss before tax was TWD523 million for fourth quarter of 2008, compared with income before tax of TWD3,154 million in the previous quarter. We recorded income tax expense of TWD300 million during the quarter, compared to income tax expense of TWD777 million in third quarter of 2008. Income tax expense of TWD300 million in fourth quarter of 2008 was primarily related to the valuation allowance adjustment of deferred income tax assets.

In fourth quarter of 2008, net loss was TWD800 million, compared to net income of TWD3,704 million for 4Q07 and TWD2,212 million for third quarter of 2008.

Our total number of shares outstanding at the end of the quarter was 5,690,427,734 shares, including treasury stock owned by our subsidiaries and shares bought back from the open market. We had bought back treasury stock of 108,700,000 shares from the open market but had not yet cancelled as of December 31, 2008. Our losses per share for fourth quarter of 2008 was TWD0.15, or $0.023 per ADS, based on 5,324,543,204 weighted average number of shares outstanding in fourth quarter of 2008.

2008 Full-year Results:

The revenue contribution from IC packaging operations (including module assembly), testing operations, and others were TWD73,392 million, TWD19,021 million, and TWD2,018 million, respectively, and each represented about 78%, 20% and 2% respectively, of total net revenues for the year.

Cost of revenues for the full year of 2008 were TWD71,886 million, a slight decrease compared to 2007.

Raw material cost totaled TWD27,276 million during the year, representing 29% of total net revenues, compared with TWD27,913 million and 28% of net revenues in 2007.

Labor cost totaled TWD14,550 million during the year, representing 15% of total net revenues, compared with TWD14,684 million and 15% of net revenues in 2007.

Depreciation, amortization and rental expenses totaled TWD16,361 million during the year, relatively unchanged compared to 2007. As a percentage of net revenues, depreciation, amortization and rental expenses were 17% during the year, up from 16% in 2007.

Gross profit for the year was TWD22,545 million, down 23% compared to TWD29,088 million in 2007. Gross margin was 24% for the year, down from 29% in 2007.

Total operating expenses during 2008 were TWD10,730 million, including TWD3,812 million in R&D and TWD6,918 million in SG&A. Total operating expenses as a percentage of net revenues was 11% in 2008, up from 10% in 2007.

Operating income for the year was TWD11,815 million, compared to operating income of TWD19,297 for the previous year. Operating margin was 13% in 2008, which decreased from 19% in 2007.

Total non-operating expenses for the year was TWD2,339 million, compared to TWD1,945 million for 2007. The increase was primarily due to the valuation loss from financial assets, and the severance pay recorded in 2008.

Income before tax was TWD9,476 million for 2008. We recognized an income tax expense of TWD2,269 million during the year. In 2008, net income amounted to TWD6,160 million, compared with a net income of TWD12,165 in 2007.

Our total shares outstanding at the end of the year were 5,690,427,734, including treasury stock.

Liquidity and Capital Resources:

As of December 31, 2008, our cash and other financial assets totaled TWD26,139 million, compared to TWD26,728 million as of September 30, 2008.

Capital expenditures in fourth quarter of 2008 totaled $46 million, of which $27 million was used for IC packaging and $19 million was used for testing.

For the full year 2008, the Company spent $395 million for capital expenditures, including $227 million for IC packaging, $165 million for testing, and $3 million for interconnect material.

As of December 31, 2008, we had total bank debt of TWD62,703 million, compared to TWD66,367 million as of September 30, 2008. Total bank debt consisted of TWD8,779 million of revolving working capital loans, TWD2,694 million of the current portion of long-term debt, TWD1,375 million of long-term bonds payable and TWD49,855 million of long-term debt. Total unused credit lines were TWD69,287 million.

Current ratio as of December 31, 2008 was 1.83, compared to 1.62 as of September 30, 2008. Net debt to equity ratio was 0.49 as of December 31, 2008.

Total number of employees was 26,977 as of December 31, 2008, compared to 29,942 as of December 31, 2007 and 30,511 as of September 30, 2008.