Operating Segments Information

OPERATING SEGMENTS INFORMATION

The Group has the following reportable segments: Packaging, Testing and EMS. The Group packages bare semiconductors into finished semiconductors with enhanced electrical and thermal characteristics; provides testing services, including

front-end

engineering testing, wafer probing and final testing services; engages in the designing, assembling, manufacturing and sale of electronic components and telecommunications equipment motherboards. Information about other business activities and operating segments that are not reportable are combined and disclosed in “Others.” The Group engages in other activities such as substrate production as well as sale and leasing of real estate properties.

The accounting policies for segments are the same as those described in Note 4. The measurement basis for resources allocation and performance evaluation is based on profit before income tax.

Segment revenues and operation results


													Adjustments
	Packaging			Testing			EMS			Others			and Eliminations			Total
	NT$			NT$			NT$			NT$			NT$			NT$

For the year ended December 31, 2021

Revenue from external customers	$	272,543,899		$	49,978,736		$	239,488,267		$	7,986,231		$	—		$	569,997,133
Inter-group revenues (Note 1)		7,244,889			339,619			27,825,073			7,527,260			(42,936,841	)		—
Segment revenues		279,788,788			50,318,355			267,313,340			15,513,491			—			612,933,974
Interest income		61,141			88,874			301,072			91,242			—			542,329
Interest expense		(1,604,107	)		(405,648	)		(629,584	)		(159,596	)		—			(2,798,935	)
Depreciation and amortization		(34,384,500	)		(13,819,080	)		(4,336,266	)		(1,984,431	)		—			(54,524,277	)
Share of the profit or loss of associates and joint ventures		737,650			66,107			95,943			—			—			899,700
Impairment loss		(86,997	)		(39,769	)		—			—			—			(126,766	)
Segment profit before income tax		41,581,126			11,998,938			8,528,675			18,085,030			—			80,193,769
Expenditures for segment assets		48,531,368			16,773,513			7,654,560			1,458,100			—			74,417,541

December 31, 2021

Investments accounted for using the equity method		12,744,756			1,896,372			2,355,472			—			—			16,996,600
Contract assets		4,735,181			872,028			—			—			—			5,607,209

For the year ended December 31, 2022

Revenue from external customers		303,947,502			55,960,182			301,966,818			8,998,141			—			670,872,643
Inter-group revenues (Note 1)		6,940,878			524,387			35,533,226			9,080,132			(52,078,623	)		—
Segment revenues		310,888,380			56,484,569			337,500,044			18,078,273			—			722,951,266
Interest income		109,148			84,562			418,507			42,530			—			654,747
Interest expense		(2,150,382	)		(463,043	)		(1,029,128	)		(346,581	)		—			(3,989,134	)
Depreciation and amortization		(33,509,358	)		(14,901,939	)		(4,654,383	)		(2,386,209	)		—			(55,451,889	)
Share of the profit or loss of associates and joint ventures		779,474			81,627			324,276			—			—			1,185,377
Impairment loss		(64,257	)		(105,169	)		(219,349	)		—			—			(388,775	)
Segment profit before income tax		51,824,439			14,626,156			14,368,179			944,854			—			81,763,628
Expenditures for segment assets		45,936,563			21,765,965			6,188,401			1,909,645			—			75,800,574

December 31, 2022

Investments accounted for using the equity method		10,341,203			1,643,940			2,694,203			—			—			14,679,346
Contract assets		4,869,541			861,632			—			—			—			5,731,173


For the year ended December 31, 2023

Revenue from external customers		256,805,887			49,879,923			268,218,002			7,010,659			—			581,914,471
Inter-group revenues (Note 1)		4,550,622			447,279			26,639,833			6,776,002			(38,413,736	)		—
Segment revenues		261,356,509			50,327,202			294,857,835			13,786,661			—			620,328,207
Interest income		188,704			124,443			1,087,121			113,139			—			1,513,407
Interest expense		(2,907,679	)		(720,145	)		(1,816,814	)		(794,272	)		—			(6,238,910	)
Depreciation and amortization		(34,110,372	)		(16,173,653	)		(5,335,496	)		(2,482,342	)		—			(58,101,863	)
Share of the profit or loss of associates and joint ventures		916,310			134,667			38,211			(8,588	)		—			1,080,600
Impairment loss		(81,133	)		(65,437	)		—			—			—			(146,570	)
Segment profit before income tax		25,405,636			9,369,875			9,216,053			(1,379,741	)		—			42,611,823
Expenditures for segment assets		27,881,152			13,664,416			6,207,532			1,005,549			—			48,758,649

December 31, 2023

Investments accounted for using the equity method		15,091,563			2,338,125			2,160,112			20,811			—			19,610,611
Contract assets		4,066,174			1,033,902			—			—			—			5,100,076


													Adjustments
	Packaging			Testing			EMS			Others			and Eliminations			Total
	US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)

For the year ended December 31, 2023

Revenue from external customers	$	8,386,868		$	1,628,998		$	8,759,569		$	228,957		$	—		$	19,004,392
Inter-group revenues (Note 1)		148,616			14,607			870,014			221,294			(1,254,531	)		—
Segment revenues		8,535,484			1,643,606			9,629,583			450,250			—			20,258,923
Interest income		6,163			4,064			35,504			3,694			—			49,425
Interest expense		(94,960	)		(23,519	)		(59,334	)		(25,940	)		—			(203,753	)
Depreciation and amortization		(1,113,990	)		(528,206	)		(174,249	)		(81,068	)		—			(1,897,513	)
Share of the profit or loss of associates and joint ventures		29,925			4,398			1,248			(280	)		—			35,291
Impairment loss		(2,650	)		(2,137	)		—			—			—			(4,787	)
Segment profit before income tax		829,707			306,005			300,982			(45,060	)		—			1,391,634
Expenditures for segment assets		910,554			446,258			202,728			32,839			—			1,592,379

December 31, 2023

Investments accounted for using the equity method		492,866			76,360			70,546			679			—			640,451
Contract assets		132,795			33,765			—			—			—			166,560

Inter-group revenues were eliminated upon consolidation.

The disaggregated product and service type from the Group’s contract with customer is the same as those disclosed in above reportable segment.

Revenue from major products and services


	For the Year Ended December 31
	2021		2022		2023
	NT$		NT$		NT$		US$ (Note 4)

Packaging service	$	272,543,899	$	303,947,502	$	256,805,887	$	8,386,868
Testing service		49,978,736		55,960,182		49,879,923		1,628,998
EMS		239,488,267		301,966,818		268,218,002		8,759,569
Others		7,986,231		8,998,141		7,010,659		228,957


	$	569,997,133	$	670,872,643	$	581,914,471	$	19,004,392

Geographical information

The Group’s revenue from external customers by location of headquarter and information about its

non-current

assets by location of assets are detailed below.

Net revenues from external customers


	For the Year Ended December 31
	2021		2022		2023
	NT$		NT$		NT$		US$ (Note 4)

United States	$	353,500,361	$	446,484,639	$	370,306,818	$	12,093,627
Taiwan		94,598,067		83,655,142		70,492,517		2,302,172
Asia		62,523,167		75,991,902		75,316,422		2,459,713
Europe		57,910,641		63,542,468		65,026,966		2,123,676
Others		1,464,897		1,198,492		771,748		25,204


	$	569,997,133	$	670,872,643	$	581,914,471	$	19,004,392


	December 31
	2022		2023
	NT$		NT$		US$ (Note 4)

Taiwan	$	268,036,245	$	258,813,497	$	8,452,433
China		69,283,739		66,660,391		2,177,021
Others		40,537,349		44,134,206		1,441,352


	$	377,857,333	$	369,608,094	$	12,070,806

Non-current

assets exclude financial instruments, post-employment benefit assets, and deferred tax assets.

Except one customer from which the operating revenues generated from packaging and EMS segments were NT$158,624,032 thousand, NT$198,858,465 thousand and NT$170,970,446 thousand (US$5,583,620 thousand) for the years ended December 31, 2021, 2022 and 2023, respectively, there was no other operating revenues from a single customer accounting for more than 10% of the Group’s operating revenues for the years ended December 31, 2021, 2022 and 2023.