UnitedDS Semiconductor (Shandong) Co., Ltd. (hereinafter referred to as "UnitedDS"), a second-tier subsidiary of Silicon Integrated Systems Corp. in mainland China, will acquire shares of Xiamen Sunplus Huaxin Technology Co., Ltd. (hereinafter referred to as "Sunplus Huaxin"). Subject to approval by the relevant regulatory authorities, UnitedDS will acquire a portion of the shares in cash, and the remaining outstanding shares of Sunplus Huaxin will be repurchased and cancelled by Sunplus Huaxin using its own capital. As a result, UnitedDS will hold 100% of the shares of Sunplus Huaxin.