Capacity*

Fab / (Wafer Size)

3Q13

2Q13

Shanghai Mega Fab (8")

90,000

90,000

Shanghai 12-inch Fab (12")

24,750

18,000

Beijing Mega Fab (12")

81,000

81,000

Tianjin Fab (8")

36,000

34,500

Total monthly wafer fabrication capacity

231,750

223,500

Note:

* Wafers per month at the end of the period in 8" equivalent wafers, calculated on a 30-day basis for comparison purposes

• Monthly capacity increased to 231,750 8-inch equivalent wafers in 3Q13 from 223,500 8-inch equivalent wafers in 2Q13, primarily due to the expansion of capacity in our Shanghai 12-inch fab.

Shipment and Utilization

8" equivalent wafers

3Q13

2Q13

QoQ

3Q12

YoY

Wafer shipments

653,090

687,651

-5.0%

605,543

7.9%

Utilization rate⁽¹⁾

88.2%

98.5%

-

92.0%

-

Note:

(1) Based on total equivalent wafers out divided by estimated total quarterly capacity.

Detailed Financial Analysis

Gross Profit Analysis

Amounts in US$ thousands

3Q13

2Q13

QoQ

3Q12

YoY

Cost of sales

422,274

406,075

4.0%

334,347

26.3%

Depreciation

126,433

107,759

17.3%

93,258

35.6%

Other manufacturing costs

294,374

295,840

-0.5%

240,620

22.3%

Share-based compensation

1,467

2,476

-40.8%

469

212.8%

Gross profit

111,982

135,227

-17.2%

126,821

-11.7%

Gross margin

21.0%

25.0%

-

27.5%

-

• Cost of sales was $422.3 million in 3Q13, up 4.0% QoQ from $406.1 million in 2Q13.
• Depreciation within the cost of sales increased to $126.4 million in 3Q13, compared to $107.8 million in 2Q13.
• Other manufacturing costs within the cost of sales decreased to $294.4 million in 3Q13, compared to $295.8 million in 2Q13.
• Gross profit was $112.0 million in 3Q13, a decrease of 17.2% QoQ from $135.2 million in 2Q13.
• Gross margin was 21.0% in 3Q13, down from 25.0% in 2Q13 primarily due to lower fab utilization in 3Q13 and product mix change.