The company has reported sales revenues for the fourth quarter of 2008 were TWD12,449 million, which represented a 27.8% decrease in revenues compared to the third quarter of 2008 and a 29.8% decline in revenues compared to the fourth quarter of 2007. SPIL reported a net loss of TWD1,034 million for the fourth quarter of 2008, compared with a net income of TWD3,186 million and a net income of TWD4,770 million for the third quarter of 2008 and the fourth quarter of 2007, respectively.

Diluted earnings per ordinary share for this quarter was TWD0.33, and diluted earnings per ADS was $ 0.05.

Operating results review:

For the fourth quarter of 2008, net revenues from IC packaging were TWD11,450 million and represented 92% of total net revenues. Net revenues from testing operations were TWD999 million and represented 8% of total net revenues.

Cost of goods sold was TWD10,049 million, representing a decrease of 23.9% compared to the third quarter of 2008 and a decrease of 20.8% compared to the fourth quarter of 2007.

Raw materials costs were TWD5,294 million for the fourth quarter of 2008, and represented 42.5% of total net revenues, whereas raw materials costs were TWD7,403 million and represented 42.9% of total net revenues for the third quarter of 2008.

TWD76 million accrued expenses of bonuses to employees were reversed back due to net loss in the fourth quarter of 2008.

Gross profit was TWD2,400 million for the fourth quarter of 2008, representing a gross margin of 19.3%, which decreased from a gross margin of 23.4% for the third quarter of 2008 and decreased from 28.5% for the fourth quarter of 2007.

Total operating expenses for the fourth quarter of 2008 were TWD1,175 million, which included selling expenses of TWD514 million, administrative expenses of TWD320 million and R&D expenses of TWD341 million. Total operating expenses represented 9.4% of total net revenues for the fourth quarter of 2008.

TWD32 million accrued expenses of bonuses to employees, directors and supervisors were reversed back due to net loss in the fourth quarter of 2008.

Operating income was TWD1,225 million for the fourth quarter of 2008, representing an operating margin of 9.8% for the fourth quarter of 2008, which decreased from 18.0% for the third quarter of 2008 and decreased from 23.9% for the fourth quarter of 2007.

Non-operating items:

Net interest income was TWD37 million for the fourth quarter of 2008.

Our net currency exchange loss of TWD17 million for the fourth quarter of 2008 was partially due to appreciation of our Japanese Yen denominated liability as a result of an appreciation in the foreign currency exchange rate of the Japanese Yen against NT dollar, our reporting currency.

Our net loss on long-term investment of TWD383 million for the fourth quarter of 2008 was primarily due to investment loss of TWD390 million and investment income of TWD7 million from Siliconware Investment Company and SPIL BVI, respectively.

Our impairment loss on long-term investments of TWD2,598 million for the fourth quarter of 2008 was due to investment loss of TWD2,144 million and TWD454 million from ChipMos Technologies Bermuda and Phoenix Precision Technology, respectively.

Net loss before tax was TWD1,647 million for the fourth quarter of 2008, which decreased from a net income of TWD3,483 million for the third quarter of 2008 and decreased from a net income of TWD5,163 million for the fourth quarter of 2007.

Income tax credit was TWD613 million for the fourth quarter of 2008, compared with income tax expense of TWD297 million for the third quarter of 2008 and TWD393 million for the fourth quarter of 2007.

Net loss was TWD1,034 million for the fourth quarter of 2008, which decreased from a net income of TWD3,186 million for the third quarter of 2008 and decreased from a net income of TWD4,770 million for the fourth quarter of 2007.

Total number of shares outstanding was 3,138 million shares as of December 31, 2008.

Diluted earnings per ordinary share for this quarter was TWD0.33, or $0.05 per ADS.

Capital expenditure and balance sheet highlight:

Our cash balances totaled TWD17,866 million as of December 31, 2008 from TWD13,075 million as of September 30, 2008, and TWD21,129 million as of December 31, 2007.

As of December 31, 2008 our long-term bank loans totaled TWD2,248 million, compared with total long-term bank loans of TWD2,982 million as of September 30, 2008.

Capital expenditures for the fourth quarter of 2008 totaled TWD1,100 million, which included TWD960 million for packaging equipment and TWD140 million for testing equipment.

Total depreciation expenses for the fourth quarter of 2008 totaled TWD2,171 million, which included TWD1,347 million was from packaging operations and TWD824 million from testing operations.

IC packaging service:

Net revenues from IC packaging operations were TWD11,450 million for the fourth quarter of 2008, which represented a decrease of TWD4,277 million or 27.2% compared to the third quarter of 2008.

Substrate-based packaging, leadframe-based packaging and wafer bumping & FCBGA accounted for 52%, 23% and 15%, respectively, of total net revenues for the fourth quarter of 2008.

Capital expenditures for IC packaging operations totaled TWD960 million for the fourth quarter of 2008, which included TWD794 million for packaging and building construction and TWD166 million for wafer bumping operations.

As of December 31, 2008 we had 4,656 wirebonders installed, of which 10 were added in the fourth quarter of 2008.

IC testing service:

Net revenues from testing operations were TWD999 million for the fourth quarter of 2008, which represented a decrease of TWD516 million or 34.1% compared to the third quarter of 2008.

Capital expenditures for testing operations totaled TWD140 million for the fourth quarter of 2008.

As of December 31, 2008 we had 374 testers installed, of which 1 testers were added and 2 testers were disposed in the fourth quarter of 2008.