TSMC Aims to be Best Partner in "Invented/Made in China" Arena

Songjiang, Shanghai, China, October 28, 2004 - TSMC (NYSE: TSM; TSE: 2330) today hosted its first China technology symposium at its Shanghai facility. The event unveiled the company’s industry-leading semiconductor manufacturing technologies and services, with an aim to become the best partner in the “Invented/Made in China” arena.

“Established in Taiwan in 1987, TSMC is the world’s first and largest dedicated foundry,” said Dr. FC Tseng, deputy chief executive officer of TSMC and chairman of TSMC (Shanghai). “We see China as a market with great potential for both our customers and TSMC. To that end, we set up TSMC (Shanghai) two years ago and initiated construction of a world-class facility in Songjiang, Shanghai. Our first eight-inch wafer fab began volume production this quarter and the fab welcomes new business,” added Dr. Tseng.

“TSMC (Shanghai) will focus on the development of the China semiconductor market with a goal toward increasing our customers’ competitiveness in both China and the global markets. This collaboration with our customers also marks a leading effort in strengthening China’s IC design industry,” continued Dr. Tseng. “We will also call upon China’s excellent human resources and industrial policies to strengthen partnerships in China’s fast-growing supply chain. With the start of volume production at TSMC (Shanghai), this new fab joins TSMC’s other fabs in Taiwan, the United States and Singapore in serving our diversified customers around the globe.”

“TSMC (Shanghai) will capitalize on TSMC’s leadership and experience in IC manufacturing technologies and services to realize its vision to become the China design community’s best partner in the ‘Invented/Made in China’ arena,” said Mr. YC Chao, President of TSMC (Shanghai). “We stand ready to extend TSMC’s visionary model of collaborative partnership to designers requiring integrated front-end and back-end services. Our aim is to maximize their product yield, accelerate time to volume, and optimize process integration within the supply chain.”

“The first TSMC (Shanghai) eight-inch fab is already in volume production, with a monthly capacity expected to reach 5,000 eight-inch wafers by the end of 2004,” continued Mr. Chao. “The fab is expected to ramp to 35,000 wafers per month, providing our customers in China with comprehensive mainstream process technologies for applications including communication, computer, and consumer electronic products.”

TSMC will continue to dedicate its effort to providing its customers with the most comprehensive and optimal IC manufacturing technologies and services. In addition to offering the most comprehensive advanced and mainstream logic technologies, TSMC also provides specialty technologies such as mixed signal and RF, embedded and non-volatile memories, high voltage, SiGe BiCMOS and CMOS image sensor technologies. TSMC also offer a comprehensive array of intellectual property cores and libraries proven in silicon. The Company also provides industry-leading mask production shop, CyberShuttleSM and back-end service offerings. Together these services aim to enable faster time to market with reduced design cost and increased production yield. In other words, these collaborating services will maximize TSMC customers’ overall benefits, and create a long lasting, win-win partnership between TSMC and its customers.

For more information about TSMC’s services in China, please contact Roger Luo, Chief Business Director, at (phone) 86-21-57768000, (fax) 86-21-57763205, or (email) roger_luo@tsmc.com.