The board of directors of Dagang NeXchange Berhad announced that the company had on 17 May 2022 entered into a Memorandum of Understanding (MOU) with Big Innovation Holdings Limited (BIH) with the intent to set up a joint venture company to build and operate a new 12-inch wafer fabrication plant in Malaysia, capable of producing up to 40,000 wafers per month in the 28-nanometer and 40-nanometers technology. The entry into the MOU forms a basis of commitment between the company and BIH to undertake the agreed roles and responsibilities in creating a mutual understanding of the strategy and business needs between the Parties to enable broader understanding for the benefits and opportunities of working with each other and create opportunities for future partnership for the Parties in relation to the Proposed Project. SALIENT TERMS OF THE MOU: Scope of MOU: The Parties are discussing on the collaboration to set up a joint venture company for the Proposed Project.

The MOU is an understanding of the Parties' intentions and is not intended to create any legal relations nor to be legally binding on the Parties. Definitive Agreement: During the duration of the MOU, the Parties will endeavour to negotiate to enter into definitive agreement(s) based on the structure of the Proposed Project and its financial details. Duration: The MOU is valid for a period of one (1) year commencing from 17 May 2022 and may be further extended by mutual agreement by the Parties ("the Term").

Notwithstanding the foregoing, the MOU will terminate prior to the expiry of the Term if: (a) A definitive agreement has been executed between the Parties; or (b) Terminated by either one of the Parties by giving one (1) month notice of termination in writing.