Historical View on The Development of Semiconductor Industry in Kaohsiung

KAOHSIUNG, TAIWAN -�Media OutReach�- 17 December 2021 -�While Kaohsiung is celebrating its 100th year from foundation in 2020, its industry has been quietly breeding for more than a century of history.

Taiwan created world-famous "Taiwan's Economic Miracle!" due to the establishment of the first free zone of "Export Processing Zone (EPZ)" in the world.� The industrial development of the Kaohsiung EPZ is also a pioneer in the development of Taiwan's electronics industry and has cultivated many talents in Taiwan's semiconductor industry. The development history of Kaohsiung's industry is also inseparable from the development of Taiwan's semiconductor industry due to the success of the Taiwan's Export Processing Zone experience.

Kaohsiung is the best choice for the semiconductor manufacturing industry. This year, for enhancing the semiconductor A-teams of Taiwan, the government is focusing on building a semiconductor supply chain ecosystem, along with driving 5G, AI, electric cars and smart machinery development, planning to set up a "Semiconductor Advanced Materials and Components Park" in Kaohsiung to allow the industrial supply chain to "provide locally." What's more, this year Kaohsiung has successfully recruited international semiconductor material suppliers to enter the Southern Science Park Luchu base, including the Merck� Group and Entegris Inc., combining the domestic semiconductor material manufacturers to build the park into the largest semiconductor process center in Taiwan, and provide full process material supports for the surrounding TSMC�, ASE�, NXP�, Winbond�, Winfoundary� and other major semiconductor manufacturers. Furthermore, it will geographically connect Southern Science Park in Taiwan, Luchu, Qiaotou, Nanzi, Dashe, Renwu, Daliao, Linyuan, Xiaogang industrial parks, with the goal of creating the "Southern Semiconductor S Corridor", we will create a complete semiconductor industry ecosystem for southern Taiwan.

Kaohsiung not only has a solid foundation for industrial development, but also has the advantages of sufficient water and electricity supply and both sea and air ports. The five deficiencies including water, electricity, land, labor and talent, that enterprises are worried about for investment have been dealt with in advance. Kaohsiung is the only city which has both the harbor and airport in Taiwan, with stable water and electricity supply, and rich industrial human resources. The surrounding MRT, railway and other public transportation network, park tour buses, and moreover, actively strive for new city development investment deduction rate, provide taxation, rent concessions, rental tax and financing interest subsidies for resident manufacturers, and strive to make Kaohsiung Taiwan's best investment environment.

The issuer is solely responsible for the content of this announcement.

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