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## Minority interests in D. Property, Plant and Equipment 

Please refer to “—B. Business Overview” for a discussion of our property, plant and equipment. 

## ITEM 4A. UNRESOLVED STAFF COMMENTS 

None. 

## ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 

You should read the following discussion of our financial condition and results of operations together with the consolidated financial statements and the notes to such statements included in this annual report. 

For the convenience of readers, NT dollar amounts used in this section for, and as of, the year ended December 31, 2011 have been translated into U.S. dollar amounts using US$1.00=NT$30.27, set forth in the statistical release of the Federal Reserve Board on December 30, 2011. The U.S. dollar translation appears in parentheses next to the relevant NT dollar amount. 

## Overview 

A number of recent and expected future developments have had, and in the future may have, a material impact on our financial condition and results of operations. These developments include: 

● changes in our revenue composition and sources of revenue growth; 

● tariff adjustments; 

● capital expenditures as a result of technological improvements and changes in our business; 

