Tai-YA Semiconductor announced today that it has fully won a contract dispute against Desheng Optoelectronics, with the Taiwan Taoyuan District Court ruling in its favor at the end of 2025. The court ordered Desheng Optoelectronics to pay Tai-YA for transaction goods and related damages, and the ruling is final. Tai-YA explained that in 2022, Desheng Optoelectronics ordered 40,000 encapsulated products with special specifications from Tai-YA. The agreement stipulated that Desheng Optoelectronics would provide the special specification substrates, and Tai-YA would be responsible for chip packaging and processing. However, during the contract period, Desheng Optoelectronics committed serious breaches of contract. Not only did it maliciously breach the contract when Tai-YA successfully completed the first batch of 7,500 products as agreed and repeatedly notified Desheng Optoelectronics to receive them, but it also refused to accept them without reason and delayed payment. Furthermore, it violated its contractual cooperation obligations, delivering only 172 units before unilaterally halting the process, preventing Tai-YA from completing subsequent products and incurring profit losses. Tai-YA stated that before filing the lawsuit, it consistently acted in good faith, sending multiple notarized letters and demand letters in an attempt to urge the other party to fulfill its obligations. Desheng Optoelectronics ignored all of them. To protect the rights and interests of the company and all shareholders, Tai-YA decisively pursued legal action after exhausting all negotiation channels, filing a lawsuit for damages with the Taiwan Taoyuan District Court and successfully obtaining a final judgment in its favor at the end of 2025. Regarding Desheng Optoelectronics' failure to fulfill its compensation obligations as per the judgment, Tai-YA is actively pursuing subsequent legal procedures. It will provide security, apply for provisional execution, and seek compulsory enforcement