The collaboration is expected to include US$500 million in strategic financing support from Micron to advance the development and supply capabilities of GlobalWafers’ U.S. operations, reinforcing the two companies’ long-term collaboration. The parties plan to establish a long-term cooperation framework through a 10-year Long-Term Agreement (LTA), with the relevant collaboration details to be advanced in accordance with subsequent agreements and applicable procedures. GlobalWafers will supply stable and resilient advanced raw silicon wafers based on customers’ long-term demand. The collaboration is also expected to further strengthen GlobalWafers’ local manufacturing capabilities in the United States and support the long-term demand for critical materials across the U.S. semiconductor supply chain.

“Securing a reliable supply of critical materials is essential to supporting Micron’s long-term growth and technology roadmap,” said Ben Tessone, senior vice president and chief procurement officer at Micron Technology. “Our strategic partnership with GlobalWafers reflects a shared commitment to strengthening the U.S. semiconductor ecosystem, enhancing supply assurance for a critical manufacturing material, and enabling the long-term innovation needed to support future technology advancements.”

With the rapid development of AI and high-performance computing (HPC) applications, demand for advanced memory and semiconductor components from data centers and cloud infrastructure continues to rise, becoming an important long-term growth driver for the semiconductor industry and further accelerating semiconductor content growth. As one of the world’s top three semiconductor raw silicon wafer suppliers, GlobalWafers offers a diversified wafer product portfolio spanning polished wafers, epitaxial wafers, SOI wafers, FZ wafers and compound semiconductor materials, including silicon carbide (SiC) and gallium nitride (GaN), supporting a wide range of requirements across different wafer sizes, technology platforms and advanced semiconductor applications. Leveraging its  comprehensive product portfolio and advanced wafer manufacturing capabilities, GlobalWafers continues to capture long-term growth opportunities driven by the AI era and create long-term value together with its customers.

At the same time, the semiconductor industry is placing increasing emphasis on the stability of critical materials supply, regional supply capabilities, and advanced wafer manufacturing capabilities. GlobalWafers’ operations span Asia, Europe, and the United States, with 18 manufacturing and operational sites across three continents and nine countries. Through its global manufacturing footprint and local supply capabilities close to customer needs, GlobalWafers is able to provide more resilient, flexible, and geographically proximate supply support in response to different market and customer requirements. This deepened collaboration with Micron also demonstrates the trust placed by a leading global customer in GlobalWafers’ regional supply strategy and advanced wafer manufacturing capabilities, while highlighting the Company’s long-term strategic value amid supply chain realignment and the trend toward semiconductor localization.

GlobalWafers is currently the only semiconductor raw silicon wafer supplier participating in the CHIPS for America Program that is capable of locally producing advanced 300mm wafers in the United States. GlobalWafers America, located in Texas, is not only the first advanced 300mm semiconductor raw silicon wafer manufacturing site with a fully integrated production process in the United States, but also an important investment by the Company to strengthen local manufacturing of advanced semiconductor wafers in the U.S. Through this collaboration, GlobalWafers will further support the raw silicon wafer supply required for Micron’s current and future generations of advanced memory products and help enhance the local critical materials supply capabilities of the U.S. semiconductor ecosystem.

GlobalWafers Chairperson and CEO Doris Hsu stated, “We are honored to deepen our long-term strategic collaboration with Micron, jointly supporting the growth in advanced memory demand in the AI era and the stable supply of critical materials for the semiconductor industry. This collaboration reflects GlobalWafers’ continued commitment to supporting customers’ long-term development through disciplined investment, technical strength, and high-quality products, while working closely with our customers to help enhance the resilience of the U.S. semiconductor supply chain. Looking ahead, GlobalWafers will continue to uphold a customer-oriented approach and long-term partnership mindset, working together with global industry partners to promote the stable development of the semiconductor supply chain.”

This press release contains “forward-looking statements” relating to certain current plans of GlobalWafers and its goals and expectations with respect to its future financial condition, performance, results, strategies, and objectives. Statements that are not historical facts, including statements regarding GlobalWafers’ beliefs and expectations, including but not limited to commitments, ambitions, and targets, and statements containing words such as “may,” “will,” “expect,” “target,” “should,” “could,” “continue,” “aim,” “estimate,” “forecast,” “believe,” “intend,” “anticipate,” “plan,” “indicate,” “commit,” “seek,” “project,” and words of similar meaning, as well as the negatives of such words, are forward-looking statements.

Forward-looking statements are based on plans, assumptions, estimates, and projections at the time such statements are made. By their nature, all forward-looking statements involve risks and uncertainties. Accordingly, actual results and events may differ materially from those expressed or implied in such forward-looking statements, and you should not rely on forward-looking statements as predictions of future results or events. Except as required by applicable securities laws, GlobalWafers undertakes no obligation to update any forward-looking statements as a result of changes in assumptions or other factors affecting such forward-looking statements.

SAS’s semiconductor subsidiary, GlobalWafers (GWC, 6488:TT), also released its June results today. The consolidated revenue reached NT$5.6 billion, marking a 16.16% MoM and a -1.63% YoY. In Q226, GlobalWafers’ consolidated revenue totaled NT$15.2 billion, showing a 8.79% QoQ and a -4.96% YoY. Looking at the first half of 2026, the consolidated revenue amounted to NT$29.2 billion, reflecting a -7.6% YoY. GlobalWafers’ second-quarter revenue rebounded significantly from the first quarter, indicating that its operating momentum has been gradually improving, supported by the recovery in semiconductor market conditions and demand for high-end applications. This also lays a solid foundation for the company’s performance in the second half of the year.

In the first half of 2026, the global semiconductor industry continued to recover on an uneven but upward trajectory. In addition to sustained strong demand for AI and advanced process applications, mature-node applications such as automotive, industrial, and energy management also gradually improved, leading to a more balanced structure for semiconductor wafers demand. GlobalWafers’ revenue in the first half of the year benefited from demand driven by AI, high-performance computing, and advanced process applications. Demand for 12-inch silicon wafers remained robust, while visibility for high-end and specialty products such as SOI and GaN continued to improve. In terms of capacity utilization, apart from new expansion projects that remain in the active sampling and qualification stage, existing 12-inch production lines operated at full utilization, while 8-inch product lines maintained high loading levels, with signs of recovery expected to gradually extend to 6-inch products. This reflects emerging signs of improvement across the industry following a period of customer inventory adjustments. GlobalWafers will continue to flexibly allocate its global capacity based on customer demand and qualification progress. Through long-term agreements, supply chain diversification, and continued improvements in operational efficiency, the Company aims to strengthen supply stability and cost resilience in response to fluctuations in global raw material, energy, and logistics costs caused by geopolitical risks and regional conflicts.

Benefiting from the global energy transition and the rapid development of emerging applications such as AI and low-earth-orbit (LEO) satellites, demand for renewable energy continues to rise. As the U.S., Europe, and Japan promote energy independence and supply chain localization, Taiwan remains well positioned to capture opportunities arising from global supply chain restructuring, leveraging its strong industrial ecosystem and manufacturing capabilities. SAS is advancing its renewable energy business through a dual-track strategy of “Manufacturing + Services.” On the manufacturing side, the Company’s wholly owned Yilan-based subsidiary, Sustainable Sunrise Co., Ltd. (SUN), focuses on high-value solar technologies and specialized applications with high entry barriers, broadening its international footprint while targeting niche segments, such as net-zero premium solar rooftops and LEO satellites. On the services side, its subsidiary, Susen Green Energy (SGE), integrates power generation, power sales, energy storage, and energy efficiency services to provide one-stop green energy solutions for corporate customers. As of the end of the second quarter of 2026, Sustainable Energy Solution (SES) and Anneal Energy (Anneal), the Group’s power sales subsidiaries, had signed cumulative green power contracts exceeding 26 billion kWh, reflecting SAS’s solid progress in expanding its presence in the renewable energy market. Following SGE’s official registration on the Taipei Exchange Emerging Stock Market (Stock Code: 7931) on June 29, SGE will continue to enhance its energy service business and capitalize on opportunities in the growing green energy market.

Regarding its affiliated companies, Taiwan Speciality Chemicals Corporation (TSC, 4772:TT) reported consolidated revenue of NT$1.8 billion for the first half of the year, representing a YoY increase of 262.8%. The strong growth was driven by the combined momentum of TSC’s core business and its subsidiary, Hung Jie Technology Corporation (HJT). Amid increasing demand for advanced semiconductor manufacturing driven by AI applications, shipments of key specialty gases, including disilane and AHF (anhydrous hydrogen fluoride), continued to ramp up. Meanwhile, demand for HJT’s ultra-high purity cleaning and ultra-precision coating services also increased, further supporting its overall business growth. Advanced Wireless Semiconductor Company (AWSC, 8086:TT) reported revenue of NT$2.5 billion for the first half of the year, representing a YoY increase of 44.4%. Supported by growing demand for advanced GaAs (gallium arsenide) wafer foundry services driven by 5G and WiFi 7 applications, AWSC is expanding into high-value-added applications, including high-speed optical communications (VCSEL Datacom) and solar applications for High-Altitude Platform Systems (HAPS). Actron Technology Corporation (Actron, 8255:TT) reported revenue of NT$4.1 billion for the first half of the year, representing a YoY decrease of 4.9%. In addition to strengthening its presence in the automotive market, Actron is also expanding into high-growth industrial applications, including high-voltage direct current (HVDC), AI servers, solar energy, and robotics, while developing high-performance power products. As these business initiatives continue to advance, the SAS Group will further deepen its presence across its three strategic pillars—renewable energy, automotive components, and semiconductors—while leveraging resource integration and cross-business synergies to reinforce its long-term growth drivers.

The Temperature Rising Index for Pathways (TRIPs), jointly established by CommonWealth Magazine and Tunghai University, is a public assessment platform that evaluates Taiwanese companies’ carbon reduction progress and temperature-rise pathways. Through science-based tools, the platform helps companies evaluate the alignment between their decarbonization commitments and implementation progress. Its assessment methodology categorizes companies based on their carbon reduction targets and current performance, compares their decarbonization pathways with international climate science models, and estimates the projected global temperature increase associated with each company’s emissions pathways through the end of this century. This year’s forum brought together representatives from more than 80 companies across the technology, manufacturing, financial, and service sectors to discuss how enterprises can use science-based management to track carbon reduction progress, strengthen climate governance capabilities, and move toward net-zero emissions.

With net-zero emissions by 2050 as its long-term direction, GlobalWafers continues to strengthen climate governance and carbon reduction management, while aligning its decarbonization targets with international climate standards. In 2026, the Company’s greenhouse gas reduction targets were validated by the Science Based Targets initiative (SBTi), marking concrete progress in GlobalWafers’ science-based approach to carbon reduction management. In terms of energy transition, GlobalWafers has also brought forward its Group-wide target for 100% renewable energy use from 2050 to 2040, and has set interim milestones of 35% by 2030, 55% by 2035, and 100% by 2040.

To increase the share of renewable energy use, GlobalWafers’ global sites are gradually advancing energy transition based on local energy conditions through self-built solar power plants, power purchase agreements, and the purchase of renewable energy certificates. Among these efforts, Danish subsidiary Topsil has commissioned its self-built solar power plant and become the Group’s first semiconductor crystal growth facility powered entirely by self-generated renewable electricity, serving as an important demonstration site for the Group’s green manufacturing and renewable energy transition. Looking ahead, GlobalWafers will continue to anchor its efforts in “Responsible Growth,” deepen climate governance, improve energy efficiency, and work with customers, suppliers, and stakeholders to foster a more resilient and competitive sustainable semiconductor value chain.

During the visit, the Italian team hosted the delegation with a company presentation and a guided tour of FAB300, introducing GlobalWafers’ global operations, product and technology development, as well as the Italian site’s investment and progress in 12-inch wafer manufacturing. Through this exchange, the delegation gained a deeper understanding of GlobalWafers’ role in the European semiconductor supply chain and witnessed the concrete results of a Taiwanese company’s long-term presence in the international market and commitment to local collaboration.

MEMC Electronic Materials S.p.A. has been deeply rooted in Novara for many years and serves as an important manufacturing and technology hub for the Group in Europe. The Novara site has a solid foundation in wafer manufacturing and strong engineering capabilities. It has long served European semiconductor customers while maintaining close collaboration with local industries, academic and research institutions, and supply chain partners. With the development and advancement of FAB300, the Italian site continues to strengthen GlobalWafers’ advanced manufacturing footprint in Europe, serving as an important hub in supporting European customers and supply chain resilience.

During the visit, Minister Lin expressed his appreciation for GlobalWafers’ operational achievements and investment in Italy, and gave positive recognition to the Company’s role in promoting technological, industrial, and talent exchanges between Taiwan and Italy. Both sides also discussed student exchanges between Taiwan and Italy, as well as talent development in STEM fields, with the aim of promoting more cross-border exchanges and talent development through stronger links between education and industry.

The visit highlighted the important role of GlobalWafers’ Italian operations in the European semiconductor supply chain, while also reflecting the Group’s development model of combining global operations with local collaboration. GlobalWafers will continue to strengthen the manufacturing capabilities, technical support, and customer service of its regional sites, further deepening its global operational footprint.

Taiwan Sites: Promoting Support Programs for Middle-Aged and Senior Employees and Retirement Preparation Across the Group

At its Taiwan sites, GlobalWafers’ Health Center planned a course on “Workplace Support for Middle-Aged and Senior Employees and Retirement Life Planning,” inviting external lecturers to share insights on workplace support for middle-aged and senior employees, intergenerational communication, and retirement preparation. To broaden its sustainability impact, the program brought together employees from GlobalWafers’ various Taiwan sites, its parent company Sino-American Silicon Products Inc. (SAS), and affiliated companies, extending employee care and career transition resources to a wider group of employees across the Group. More than 100 employees participated in the program.

The course began by addressing the common physical and mental conditions, family caregiving responsibilities, and lifestyle needs of middle-aged and senior employees, helping both employees and supervisors gain a better understanding of the work and life challenges that may arise in the later stages of one’s career. It also explored differences in values and communication styles between middle-aged and senior employees and younger generations, thereby promoting mutual understanding and collaboration across generations. In addition, the course encouraged employees to view retirement as a new beginning in life and to begin considering their post-retirement lifestyle arrangements and directions for self-fulfillment in advance. Through cross-site resource sharing within the Group, the course not only responded to employees’ personal needs for career and life planning, but also helped foster a more age-friendly workplace environment.

Korea Site: Retirement Transition Program Helps Employees Plan for the Next Stage of Life

MEMC Korea Company (MKC), GlobalWafers’ Korean subsidiary, also organized a retirement preparation and career transition training program for five employees approaching retirement, helping them think ahead about post-retirement life arrangements, financial planning, and future development possibilities. For employees who are about to enter retirement, retirement does not simply mean leaving a familiar workplace; it also represents a readjustment of daily routines, family roles, and personal life planning. Therefore, preparing in advance and understanding available resources can help make this transition more purposeful and well-guided.

The program was conducted in collaboration with a professional career transition training institution. Course content covered financial and tax management, pension utilization, social insurance systems, and an introduction to government support resources, helping employees gain a clearer understanding of the protection mechanisms available after retirement. In addition, the course guided employees to re-examine their own experience, capabilities, and interests amid the AI era and a rapidly changing employment environment, while exploring possibilities for a second career or other life development paths. Participating employees shared that the program provided a valuable opportunity for them to think more concretely about their post-retirement life and career arrangements, giving them greater peace of mind and anticipation as they approach this important life transition.

Continuously Enhancing Employee Transition Support and Building a More Inclusive Workplace

From cross-site programs across the Group in Taiwan to retirement transition programs at overseas subsidiaries, GlobalWafers is gradually extending employee career transition support to different operating locations, reflecting the Group’s long-term commitment to talent development, employee well-being, and the promotion of a friendly workplace. The Company will continue to pay attention to topics such as support for middle-aged and senior employees, retirement transition, and second-career exploration, while providing appropriate information, resources, and assistance according to employees’ needs in different locations. By accompanying employees as they steadily navigate important life transitions, GlobalWafers aims to further build a more inclusive and sustainably resilient workplace environment.

Jointly conducted by the Taiwan Stock Exchange and the Taipei Exchange, the 2025 evaluation covered 1,810 listed and TPEx-listed companies, with only 40 TPEx-listed companies ranked in the top 5%. GlobalWafers’ continued position among the top-tier performers reflects its performance in board operations, information disclosure, shareholder rights protection, and sustainable governance.

Guided by its philosophy of “Responsible Growth,” GlobalWafers continues to enhance its governance framework, improve operational transparency, and integrate sustainability into daily management and stakeholder communication. Notable achievements include:

• Continued improvement in global sustainability ratings: GlobalWafers continues to advance climate action, water resource management, and supply chain sustainability management. In 2025, the company received an “A” Leadership Level rating in CDP’s Water Security assessment and was recognized as a Supplier Engagement Leader, the highest rating of “A” in CDP’s Supplier Engagement Assessment, for two consecutive years in 2024 and 2025..
• Recognition for employee care and inclusion: GlobalWafers values employee care and workplace equality, and addresses employee needs through a variety of initiatives. In addition to receiving the “Excellence Award for Promoting Workplace Equality” from the Hsinchu Science Park Bureau for three consecutive years, the company has also promoted job redesign initiatives and received the Ministry of Labor’s “Outstanding Employment Award for Senior Workforce” for two consecutive years.
• Excellence in board diversity and independence: Among the eight board members, three are female directors, accounting for 37.5% of total seats, and four are independent directors, representing 50%, contributing to enhanced board decision-making quality and oversight effectiveness.
• Strong intellectual property management and protection of R&D achievements: GlobalWafers has consistently obtained AA-level certification under the Taiwan Intellectual Property Management System (TIPS) for six consecutive times and was honored with the Hsinchu Science Park Bureau’s “2025 Science Park R&D Accomplishment Award,” making it the only company to receive this award in 2025.

In addition, GlobalWafers’ parent company, Sino-American Silicon Products Inc. (SAS), and affiliated companies Actron Technology Corporation (Actron) and Advanced Wireless Semiconductor Company (AWSC) were also ranked among the top 5% of TPEx-listed companies in this year’s evaluation. Taiwan Speciality Chemicals Corporation (TSC) participated in the evaluation for the first time and was ranked within the 6% to 20% tier, highlighting the Group’s outstanding overall governance performance. GlobalWafers remains committed to integrity-driven governance and sound operations. The company will continue to advance its corporate governance and sustainable development practices, creating long-term value for shareholders, customers, employees, and society.

GlobalWafers Co., Ltd. (GlobalWafers) is guided by its philosophy of “Responsible Growth,” and its greenhouse gas (GHG) reduction targets have been validated by the Science Based Targets initiative (SBTi), demonstrating that its decarbonization pathway is aligned with the global 1.5°C climate goal and supports its continued progress toward achieving net-zero emissions across its entire value chain by 2050.

Science‑Based Emission Reduction Targets: Driving Net-Zero Transformation Across the Value Chain

The Science Based Targets initiative is an internationally recognized framework for low-carbon transition, designed to assist corporations and organizations in setting GHG reduction targets in line with the latest climate science. Its standard framework ensures that corporate decarbonization targets are aligned with the decarbonization pathway of the Paris Agreement, supporting efforts to limit global warming to within 1.5°C above pre-industrial levels.

Regarding near-term targets, GlobalWafers commits to reducing absolute Scope 1 and Scope 2 GHG emissions by 63% by 2035 from a 2022 base year. For Scope 3, GlobalWafers focuses on three primary emission sources: “Purchased Goods and Services” (Category 1), “Capital Goods” (Category 2), and “Fuel- and Energy-Related Activities” (Category 3). GlobalWafers commits to reducing absolute GHG emissions from these categories by 37.5% by 2035 from a 2024 base year. In terms of long-term targets, GlobalWafers commits to reducing absolute Scope 1 and Scope 2 GHG emissions by 90% by 2050 from a 2022 base year. GlobalWafers also commits to reducing absolute GHG emissions across all Scope 3 categories by 90% by 2050 from a 2024 base year, and to achieve net-zero emissions across the entire value chain by 2050.

Extending decarbonization across the entire value chain requires companies to integrate their global operations and upstream and downstream supply networks, while advancing decarbonization transformation through long-term governance and systematic action. GlobalWafers will continue to follow the standards of the Science Based Targets initiative, deepen decarbonization management across the entire value chain, and collaborate with supply chain partners to advance GHG reduction action, strengthening the climate resilience and sustainable competitiveness of the overall value chain.

Driving Low-Carbon Transition: Deepening Operational Decarbonization and Value Chain Collaboration

GlobalWafers continues to advance its low-carbon transition, implementing decarbonization strategies across both operations and the value chain. In terms of internal operations, GlobalWafers promotes green manufacturing through process optimization and equipment upgrades, including replacement of high-efficiency equipment, adoption of heat pump technology, and process redesign, combined with improvements in energy efficiency, deployment of low-carbon technologies, and optimization of resource circularity, to reduce carbon emission intensity per unit of product. In parallel, GlobalWafers is expanding the use of renewable energy through multiple approaches, including the development of on-site solar power installations, the signing of long-term Power Purchase Agreements (PPAs), and the procurement of Renewable Energy Certificates (RECs). These efforts are steadily increasing the share of renewable energy across GlobalWafers’ global operations, supporting its commitment to achieving 100% Renewable Energy (RE100) across all global production sites by 2040. Furthermore, GlobalWafers has established an internal carbon pricing mechanism and supports natural carbon sinks and engineered carbon capture to enhance climate risk and opportunity management, strengthening overall operational resilience.

For value chain decarbonization, GlobalWafers has established a raw material supplier tiered management mechanism. This initiative encourages suppliers to conduct product carbon footprint inventories and obtain third-party verification. GlobalWafers also invites major emissions-intensive suppliers to commit to the Science Based Targets initiative (SBTi) and continuously tracks suppliers’ decarbonization pathway plans and execution progress. Meanwhile, the Company collaborates with key value chain partners to deepen decarbonization engagement and gradually expand the impact of its GHG reduction efforts   across the entire semiconductor value chain.

Doris Hsu, Chairperson of GlobalWafers, stated: “GlobalWafers’ GHG reduction targets have been validated by the Science Based Targets initiative, confirming that the Group’s decarbonization pathway is aligned with internationally recognized climate science standards. In response to the global trend toward net-zero transition, We will continue to deepen green manufacturing and strengthen value chain collaboration, steadily advancing toward its GHG reduction targets. GlobalWafers regards sustainable development as a key foundation of long-term competitiveness, striving to create long-term, resilient, and sustainable value for the environment, society, and stakeholders.”

The CDP Supplier Engagement Assessment (SEA) evaluates how companies extend climate action beyond their own operations into the value chain through governance frameworks, supplier collaboration, greenhouse gas (GHG) accounting, and target setting. It serves as a key indicator of a company’s maturity in value chain climate governance.

To advance value chain decarbonization, GlobalWafers has implemented a tiered management mechanism for raw material suppliers, encouraging them to conduct product carbon footprint assessments and obtain third-party verification. Currently, 80% of its key raw material suppliers have met the Company’s decarbonization requirements, including committing to set Science-Based Targets initiative (SBTi) near-term targets by 2026 and completing product carbon footprint assessments for major products by 2025. In parallel, GlobalWafers collaborates with high-emission suppliers to participate in the SBTi, while continuously tracking the implementation of their decarbonization commitments and transition progress. GlobalWafers also works closely with key value chain partners to deepen low-carbon collaboration and technical exchange, progressively expanding climate action across the broader semiconductor supply chain.

Guided by its philosophy of “Responsible Growth,” GlobalWafers continues to optimize its low-carbon operations while actively partnering with suppliers and customers to advance climate action and build a more resilient and sustainable value chain. The Company is also strengthening its sustainability governance and environmental management across multiple dimensions—from organizational governance frameworks and decarbonization pathway planning to water resource management—thereby enhancing its overall climate action capabilities and laying a solid foundation for long-term sustainable development.

Benefiting from growing demand driven by AI and high-performance computing, the global semiconductor market has shown a broad-based recovery over recent quarters, supporting a gradual improvement in upstream wafer shipments, although the pace of recovery remains uneven across end-market applications. GlobalWafers’ first-quarter operations were temporarily affected by seasonality and extreme weather conditions. As these disruptions have subsided, shipments across sites have returned to normal. While profitability remains under short-term pressure due to capacity ramp-up, as global expansion projects gradually come onstream and capital expenditures begin to converge, the Company’s operational focus has shifted toward accelerating customer qualifications and enhancing capacity utilization. The Company is also seeing multiple positive signals from customers, indicating demand improvement has become more pronounced. In terms of utilization, excluding newly added lines still in the ramp-up stage, 12-inch utilization across the Company’s global sites remained fully loaded. Utilization of small- and mid-diameter wafers also improved meaningfully, with 8-inch demand remaining strong, supported by recovering power management and analog applications, and gradually extending to 6-inch wafers, driving continued improvement in overall capacity utilization and shipment momentum.

GlobalWafers continues advancing its global expansion and localization strategy, with major sites accelerating sampling and customer qualifications while beginning to realize results. In Japan, the expanded Utsunomiya facility has quickly returned to profitability, contributing to margin improvement and positive cash flow. In Italy, installation of expansion equipment is nearing completion, the new production line has obtained IATF 16949 certification, demonstrating that its processes and quality management meet the stringent requirements of the automotive supply chain, which will help accelerate customer qualification and volume production ramp-up. In the United States, the new Texas fab continues equipment installation and line setup, and has secured qualifications from leading customers to support capacity ramp-up. In Missouri, 12-inch SOI newly added equipment has gradually completed production qualification, with selected RF and silicon photonics products entering mass production in the first quarter of 2026.

The Company has also achieved encouraging progress in government incentives. In the United States, subsidiaries led by GlobalWafers America, in addition to previously secured CHIPS Act support, have recently obtained benefits under the Advanced Manufacturing Investment Credit (AMIC) and other government incentive programs, with approximately US$317.8 million received as of the first quarter of this year. These incentives carry meaningful financial significance for the Company’s long-term U.S. investment and capital allocation. In Italy, the first tranche of government subsidy funding has been approved, with nearly €30 million received in March this year, while subsequent subsidy applications remain on track according to schedule, supporting the Company’s long-term manufacturing footprint and operational stability. Meanwhile, the Company continues optimizing its balance sheet, with debt levels declining from prior peaks and bank borrowings further reduced. As market recovery supports future revenue and cash flow growth, GlobalWafers expects to further strengthen its financial position.

As advanced packaging technologies and high-efficiency, high-frequency applications drive demand for new materials, GlobalWafers continues expanding its portfolio of high-value products. In product mix, supported by strong customer demand and solid order visibility, SOI production line has delivered strong performance and, despite still being in the early stage of expansion, has already achieved positive gross margin, becoming one of the early highlights among the Group’s strategic initiatives to demonstrate tangible results. In compound semiconductors, 12-inch SiC has completed development and entered qualification with key customers. During 2026, the focus will be on validation and limited-volume shipments, with future volume ramping to follow customer qualification progress. Applications are expected to extend into thermal management, advanced packaging, and selected optical fields. Meanwhile, GaN remains focused on high-efficiency power applications, including data centers, charging infrastructure, and smart devices. Capacity remains fully utilized, with approximately 30% expansion completed and an additional 20% capacity expansion underway to support future growth momentum.

In sustainability governance, the results of the 12^th (2025) Corporate Governance Evaluation were recently announced, with GlobalWafers has once again been awarded among the top 5% of all Taipei Exchange-listed companies for the eighth consecutive year, and has also been recognized among the top 10% of electronics companies with a market capitalization of NT$10 billion or above. This not only demonstrates the Company’s consistently strong governance performance among industry peers, but also highlights GlobalWafers’ long-term commitment to advancing corporate governance and sustainable development. Guided by its principle of “Responsible Growth,” GlobalWafers continues to respond to macroeconomic and industry changes through operational resilience, while further strengthening its governance framework and steadily advancing toward long-term sustainable growth.