Micron Semiconductor Taiwan Co. Ltd. (“MST”) and Inotera Memories, Inc. will complete the share swap transaction on December 6, 2016. Nanya Technology Corporation will transfer all of its Inotera shareholding of 1,587,483,714 shares with NT$ 30 per share to MST for NT$ 47.62 billion. According to the book cost as of November 30, 2016, the estimated pre-tax disposal profit will be NT$ 19.97 billion and the estimated after-tax profit will be NT$ 18.64 billion. The disposal profit will be shown on financial statement in the fourth quarter of 2016.

As the share swap completes, the Joint Venture (JV) Agreement signed by NTC and Micron Technology, Inc. and its affiliates (Micron) will be terminated. Meanwhile, NTC and Micron will enter into the Letter of Cooperation Arrangement. The agreement indicates that during the period of the Joint Venture Agreement, the identified expenses as a result of or arising from Inotera’s specific items related to environmental safety and facilities, NTC will be paying 50% of the expenses, the estimated cost is about NT$ 0.85 billion. The exact paying amount will be determinate by the actual expense at that time. Within 2 year anniversary to 5 year anniversary of the share swap record date, if there are fines and penalties imposed by any governmental entity, remediation costs, shutdown losses or reduced output losses as a result of or arising from Inotera’s violations related to environmental safety and facilities on or before share swap record date, NTC will share 50% of cost.

To further enhance the strategic relationship with Micron, NTC already completed the investment in Micron’s private placement and held about 5.26% of Micron’s share by acquiring Micron’s 57,780,138 shares with the price of US$17.29 per share for NT$ 31.46 billion on December 2, 2016. NTC also has an option to license Micron 1x and 1y DRAM technologies and products. In view of the whole transaction, it not only enhances NTC’s development in long term but also creates more values for its shareholders.