16.

PROPERTY, PLANT AND EQUIPMENT

The carrying amounts of each class of property, plant and equipment were as follows:

	December 31
	2017		2018
	NT$		NT$		US$ (Note 4)

Land	$	3,258,518	$	10,165,969	$	332,113
Buildings and improvements		58,272,864		78,963,937		2,579,678
Machinery and equipment		66,185,198		108,087,970		3,531,133
Other equipment		1,588,113		6,463,160		211,145
Construction in progress and machinery in transit		5,863,713		10,911,552		356,470

	$	135,168,406	$	214,592,588	$	7,010,539

For the year ended December 31, 2016

	Land			Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	NT$			NT$			NT$			NT$			NT$			NT$

Cost

Balance at January 1, 2016	$	3,381,300		$	94,447,932		$	243,283,607		$	7,722,408		$	6,397,760		$	355,233,007
Additions		-			22,341			94,480			470,901			27,093,140			27,680,862
Disposals		-			(684,698	)		(5,956,179	)		(159,822	)		(268,782	)		(7,069,481	)
Reclassification		-			5,110,102			19,661,732			691,276			(25,463,285	)		(175	)
Acquisitions through business combinations		-			-			-			1,159			-			1,159
Effect of foreign currency exchange differences		(16,287	)		(2,637,502	)		(8,882,884	)		(251,261	)		(45,291	)		(11,833,225	)

Balance at December 31, 2016	$	3,365,013		$	96,258,175		$	248,200,756		$	8,474,661		$	7,713,542		$	364,012,147

Accumulated depreciation and impairment

Balance at January 1, 2016	$	-		$	34,646,878		$	164,568,298		$	5,907,414		$	113,342		$	205,235,932
Depreciation expenses		-			5,114,263			22,983,290			864,061			-			28,961,614
Impairment losses recognized		-			620			876,123			5,564			5,924			888,231
Disposals		-			(449,198	)		(5,544,489	)		(151,875	)		(100,049	)		(6,245,611	)
Reclassification		-			(5,123	)		9,660			(4,537	)		-			-
Acquisitions through business combinations		-			-			-			824			-			824
Effect of foreign currency exchange differences		-			(1,077,896	)		(7,392,888	)		(236,371	)		(1,929	)		(8,709,084	)

Balance at December 31, 2016	$	-		$	38,229,544		$	175,499,994		$	6,385,080		$	17,288		$	220,131,906

For the year ended December 31, 2017

	Land			Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	NT$			NT$			NT$			NT$			NT$			NT$

Cost

Balance at January 1, 2017	$	3,365,013		$	96,258,175		$	248,200,756		$	8,474,661		$	7,713,542		$	364,012,147
Additions		-			350,434			102,301			130,659			23,094,288			23,677,682
Disposals		-			(609,294	)		(8,449,949	)		(763,937	)		(73,248	)		(9,896,428	)
Reclassification		(35,965	)		6,483,392			18,331,738			174,947			(25,428,464	)		(474,352	)
Effect of foreign currency exchange differences		(70,530	)		(2,294,779	)		(4,986,843	)		(204,250	)		557,595			(6,998,807	)

Balance at December 31, 2017	$	3,258,518		$	100,187,928		$	253,198,003		$	7,812,080		$	5,863,713		$	370,320,242

Accumulated depreciation and impairment

Balance at January 1, 2017	$	-		$	38,229,544		$	175,499,994		$	6,385,080		$	17,288		$	220,131,906
Depreciation expenses		-			5,156,558			22,722,307			746,422			-			28,625,287
Impairment losses recognized		-			2,310			286,880			368			-			289,558
Disposals		-			(478,903	)		(7,540,654	)		(720,319	)		(17,288	)		(8,757,164	)
Reclassification		-			(210,080	)		34,452			(24,117	)		-			(199,745	)
Effect of foreign currency exchange differences		-			(784,365	)		(3,990,174	)		(163,467	)		-			(4,938,006	)

Balance at December 31, 2017	$	-		$	41,915,064		$	187,012,805		$	6,223,967		$	-		$	235,151,836

For the year ended December 31, 2018

	Land		Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	NT$		NT$			NT$			NT$			NT$			NT$

Cost

Balance at January 1, 2018	$	3,258,518	$	100,187,928		$	253,198,003		$	7,812,080		$	5,863,713		$	370,320,242
Additions		-		144,898			192,673			84,860			38,669,807			39,092,238
Disposals		-		(677,206	)		(26,493,282	)		(2,251,060	)		(34,902	)		(29,456,450	)
Reclassification		-		5,388,709			32,060,513			2,148,211			(39,612,324	)		(14,891	)
Acquisition through business combinations (Note 30)		6,880,400		37,127,957			95,810,062			11,122,171			5,781,189			156,721,779
Effect of foreign currency exchange differences		27,051		(464,275	)		(929,579	)		(78,095	)		244,069			(1,200,829	)

Balance at December 31, 2018	$	10,165,969	$	141,708,011		$	353,838,390		$	18,838,167		$	10,911,552		$	535,462,089

	Land		Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit		Total
	NT$		NT$			NT$			NT$			NT$		NT$

Accumulated depreciation and impairment

Balance at January 1, 2018	$	-	$	41,915,064		$	187,012,805		$	6,223,967		$	-	$	235,151,836
Depreciation expenses		-		6,325,948			31,751,251			1,816,587			-		39,893,786
Impairment losses recognized		-		29,531			97,680			5,860			-		133,071
Disposals		-		(491,033	)		(25,704,778	)		(2,070,302	)		-		(28,266,113	)
Reclassification		-		(265	)		-			-			-		(265	)
Acquisition through business combinations (Note 30)		-		15,097,920			53,210,063			6,428,174			-		74,736,157
Effect of foreign currency exchange differences		-		(133,091	)		(616,601	)		(29,279	)		-		(778,971	)

Balance at December 31, 2018	$	-	$	62,744,074		$	245,750,420		$	12,375,007		$	-	$	320,869,501

	Land		Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	US$ (Note 4)		US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)

Cost

Balance at January 1, 2018	$	106,453	$	3,273,046		$	8,271,741		$	255,213		$	191,562		$	12,098,015
Additions		-		4,734			6,294			2,772			1,263,306			1,277,106
Disposals		-		(22,124	)		(865,511	)		(73,540	)		(1,140	)		(962,315	)
Reclassification		-		176,044			1,047,387			70,180			(1,294,097	)		(486	)
Acquisition through business combinations (Note 30)		224,776		1,212,936			3,130,025			363,351			188,866			5,119,954
Effect of foreign currency exchange differences		884		(15,168	)		(30,368	)		(2,551	)		7,973			(39,230	)

Balance at December 31, 2018	$	332,113	$	4,629,468		$	11,559,568		$	615,425		$	356,470		$	17,493,044

Accumulated depreciation and impairment

Balance at January 1, 2018	$		$	1,369,326		$	6,109,533		$	203,331		$	-		$	7,682,190
Depreciation expense		-		206,663			1,037,283			59,346			-			1,303,292
Impairment losses recognized		-		965			3,191			192			-			4,348
Disposals		-		(16,042	)		(839,751	)		(67,635	)		-			(923,428	)
Reclassification		-		(9	)		-			-			-			(9	)
Acquisition through business combinations (Note 30)		-		493,235			1,738,323			210,003			-			2,441,561
Effect of foreign currency exchange differences		-		(4,348	)		(20,144	)		(957	)		-			(25,449	)

Balance at December 31, 2018	$	-	$	2,049,790		$	8,028,435		$	404,280		$	-		$	10,482,505

Due to the Group’s future operation plans and capacity evaluation or production demands in segment of packaging and testing, the Group believed that a portion of property, plant and equipment does not qualify for the production needs and, therefore, recognized an impairment loss of NT$888,231 thousand, NT$289,558 thousand and NT$133,071 thousand (US$4,348 thousand) under the line item of other operating income and expenses in the consolidated statements of comprehensive income (Note 26) for the years ended December 31, 2016, 2017 and 2018, respectively. The recoverable amount of a portion of the impaired property, plant and equipment is determined by its fair value less costs of disposal, of which the fair value is based on the recent quoted prices of assets with similar age and obsolescence that provided by the vendors in secondary market which represent a Level 3 input because the secondary market is not very active. The recoverable amount of the other portion of the impaired property, plant and equipment is determined on the basis of its value in use and the Group expects to derive zero future cash flows from these assets.

Each class of property, plant and equipment was depreciated on a straight-line basis over the following useful lives:

Buildings and improvements
Main plant buildings				10-55 years
Cleanrooms				10-20 years
Others				3-20 years
Machinery and equipment				2-10 years
Other equipment				2-20 years

The capitalized borrowing costs for the years ended December 31, 2016, 2017 and 2018 are disclosed in Note 26.