Letter to Shareholders

Looking ahead to 2025, the trend in AI hardware construction is expected to shift from centralized computing power to edge computing. Products related to industrial computers, networking, and servers are anticipated to experience an increase in power consumption due to the incorporation of graphics processing chips. Nvidia has planned the MGX platform with a 12V output, the HGX platform with a 48V output, and the GB200 OCP platform featuring a Power Shelf to align with this trend. In the MGX platform, Nvidia aims to reduce hardware development costs for chip application vendors by standardizing rack layouts and utilizing the CRPS specification for power supply. It is noteworthy that FSP and its subsidiary, 3Y Power, have long been engaged in the server power supply market. They are well-acquainted with the design and manufacturing of CRPS and possess a product line of standard products across various power ratings, enabling them to respond swiftly to the future power demands of the MGX platform. Currently, they have achieved mass production of 2700W power supplies, with plans to develop up to 3600W by 2025. Furthermore, Nvidia is set to launch its 5090 series chips in 2025, which is expected to drive up power requirements for gaming computers and trigger a new wave of hardware upgrades. This development is anticipated to benefit FSP's sales in this segment. Although AI-enabled personal computers were introduced last year, they did not spark a significant wave of PC upgrades. However, in 2025, the growing adoption and application of AI technologies may drive an increase in PC replacements, which would positively impact FSP's PC power supply sales. In these markets, some consumers prefer non-standard PCs or Mini PCs. To meet this demand, the Company has developed high power density slim adapters. In summary, by 2025, FSP will offer a comprehensive product portfolio covering networking, high-performance computing, server power supplies, and white-label CRPS power supplies. Building on the recovery seen in the latter half of the previous year, the Company is expected to maintain its growth momentum. The overall target for total sales of power supply quantity is 1800 million units.

FSP is committed to its corporate mission of "maximizing value for customers, employees, and shareholders with innovative services and high-quality products." Continuously research and develop advanced technology, develop power sources for innovative industries, to provide high value added power products. Since last year, AI chips have been increasingly utilized in related products, leading to a significant increase in power demands and the output of power supplies. Within the framework of environmental and sustainable development, the role of high-power and high-efficiency power supply products becomes even more important. FSP will allocate more and better research and development resources, dedicating to create high-power and high-efficiency power supply products with technological strength, meeting market demands for durability and efficiency, as well as the explosive growth in the AI industry.

FSP has set up the Sustainable Development Committee under the jurisdiction of the Board of Directors. With regard to current domestic and foreign laws and regulations that govern our operations, and our management team will continue to pay close attention to policies and laws on corporate governance issues that may affect the Company's financial and business. We shall provide guidance and review environmental issues related to the environment between operations and production, and social issues related to coexistence and mutual prosperity with society and stakeholders on all levels.

FSP is committed to protecting the environment with green energy, respecting customers, and creating a high-quality work environment. We seek to become the most reliable partner for customers, consumers, suppliers, and employees and maximize value for customers, shareholders, and employees.