TSMC Stock Dividend Details for Common Shares

Hsinchu, Taiwan, June 23, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today announced details in respect of its previously-announced distribution of a stock dividend of NT$0.80 per Common Share. Each shareholder will be entitled to receive a stock dividend of 80 shares for each 1,000 shares held by such shareholder.

The Company set the record date for TSMC common shares listed and traded on the Taiwan Stock Exchange to be July 13, 2003. As required by Article 165 of the Company Law, the shareholders' register shall be closed for registration of transfer from July 9 through July 13, 2003. To be entitled for the above-mentioned stock dividend, any person acquires TSMC's common shares without being registered as a holder shall apply for the shareholders' registration with the Agency Department of China Trust Commercial Bank before 5:00 p.m., July 8, 2003, in person or by mails with postmark of the said date.

Details for the stock dividend of TSMC’s NYSE-listed American Depositary Shares (“ADSs”) will be announced shortly this week on TSMC’s website: www.tsmc.com.

Agency Department of China Trust Commercial Bank

Add: 5th Floor, No. 83, Sec. 1, Chungking S. Rd., Taipei, ROC

Tel: 886-2-2361-3033