20 Percent of TSMC Wafer Process Equipment Recovered

Hsinchu, Taiwan, September 25, 1999- Taiwan Semiconductor Manufacturing Company ("TSMC" or the "Company") (NYSE: TSM) indicated as of 17:00 p.m. that after five days following the devastating earthquake, 20 percent of the Company's wafer process equipment has already been released for production.

TSMC gave the credit of the fast recovery progress to the Taipower for its timely power supply and to TSMC employees for their outstanding performance.

TSMC spokesman, YC Huang stated the Company had finished a comprehensive facility and equipment check-out on each of its 5 fabs yesterday. "We did not see any further losses after yesterday's inspection. In addition, each fab's DI water, HVAC, gas, exhaust and power supply systems have all been fully restored. Moreover, all major equipment vendors have sent a highly experienced crew from abroad to TSMC to speed up the recovering progress," said Mr. Huang.

Mr. Huang continued, "We have already called in a full production work force in each fab. To the press time, 20 percent of our wafer process equipment has already been released for production. Moreover, the recovery of our mask shop is even faster. Today our mask shop has had a 50 percent of production capacity, and the figure is expected to reach 80 percent on September 27, 1999."

Meanwhile, the Hsin-Chu Science-Based Industrial Park (HSIP) today received 100 percent external power from Taipower. It is expected that the full power recovery will bring significant contribution to the production recovery of TSMC and other companies in the HSIP. On behalf of TSMC, Mr. YC Huang expressed his deepest gratitude to the Government, Taipower and Taipower's hardworking employees for their timely support on power supply to the HSIP.