A capital reduction plan approved at the general stockholders’ meeting on June 15, 2007 was executed  in 2007. Trading of our shares was suspended in the Taiwan Stock Exchange from December 21, 2007 to  January 8, 2008. Trading of our new shares commenced on January 9, 2008. The amount of the capital reduction  was NT$9,667,845,090, corresponding to 966,784,509 common shares of 10,634,629,602 total listed common  shares—a reduction ratio of 9.09090908834%. Every thousand shares were converted to 909.09090991165  shares. For the fractional common shares resulting from the capital reduction, we paid the stockholder cash based  on the closing price on December 20, 2007, which was NT$59.9, rounded off to the nearest whole NT dollar.  After the capital reduction, the share price was restated in accordance with Article 67-1 of the Operating Rules of  the Taiwan Stock Exchange Corporation.  Another capital reduction plan approved at the special stockholders’ meeting on August 14, 2008 was  executed in 2009. The last trading date for our old shares was March 2, 2009. Trading of our shares was  suspended in the Taiwan Stock Exchange from March 3 to March 19, 2009. Trading of our new shares  commenced on March 20, 2009. The amount of the capital reduction was NT$19,115,553,820, corresponding  to 1,911,555,382 common shares of total listed common shares—a reduction ratio of 16.46705301419%. Every  thousand shares were converted to 835.329469858 shares. For the fractional common shares resulting from  the capital reduction, we paid the stockholder cash based on the closing price on March 2, 2009, which was  NT$54.9, rounded off to the nearest whole NT dollar. After the capital reduction, the share price was restated in  accordance with Article 67-1 of the Operating Rules of the Taiwan Stock Exchange Corporation.  An additional capital reduction plan approved at the general shareholders’ meeting on June 19, 2009 was  executed in 2009. The last trading date for our old shares was January 20, 2010. Trading of our shares was  suspended in the Taiwan Stock Exchange from January 21 to February 7, 2010. Trading of our new shares  commenced on February 8, 2010. The amount of the capital reduction was NT$9,696,808,180, corresponding  to 969,680,818 common shares of total listed common shares—a reduction ratio of 9.09090909006%. Every  thousand shares were converted to 909.0909090994 shares. For the fractional common shares resulting from  the capital reduction, we paid the stockholder cash based on the closing price on January 20, 2010, which was  NT$58.1, rounded off to the nearest whole NT dollar. After the capital reduction, the share price was restated in  accordance with Article 67-1 of the Operating Rules of the Taiwan Stock Exchange Corporation.  An additional capital reduction plan approved at the general shareholders’ meeting on June 18, 2010  was executed in 2011. The last trading date for our old shares was January 6, 2011. Trading of our shares  was suspended in the Taiwan Stock Exchange from January 7 to January 24, 2011. Trading of our new shares  commenced on January 25, 2011. The amount of the capital reduction was NT$19,393,616,360, corresponding to  1,939,361,636 common shares of total listed common shares—a reduction ratio of 20%. Every thousand shares  were converted to 800 shares. For the fractional common shares resulting from the capital reduction, we paid the  stockholder cash based on the closing price on January 6, 2011, which was NT$73.1, rounded off to the nearest  whole NT dollar. After the capital reduction, the share price was restated in accordance with Article 67-1 of the  Operating Rules of the Taiwan Stock Exchange Corporation.  Closing price per  common share (1) Average daily  trading volume High Low NT$ NT$ (in thousands) 2006 53.57  44.38  7,648  2007 66.15  52.38  9,320  2008 77.75  57.89  23,035  2009 73.88  61.52  20,048  First Quarter 69.40  18,870  Second Quarter 61.98  30,676  Third Quarter 71.90  66.96  18,323  Fourth Quarter 73.88  70.41  12,619  2010 93.25  67.77  13,142  First Quarter 73.76  10,824  101 PART I