TSMC July Sales Set Record High

Hsinchu, Taiwan, August 9, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (“the Company”) (TAIEX: 2330, NYSE: TSM) today said that net sales for July 2004 reached NT$23,148 million, marking the fourth consecutive monthly record. July 2004 sales increased 2.8 percent sequentially and grew yet another 31.2 percent on a year-over-year basis.

Revenues for January through July 2004 totaled NT$145,530 million, an increase of 36.1 percent over the same period in 2003.

Sales Report: (Unit: NT$ million)

Net Sales

2004(1)

2003

Growth Rate

July

23,148

17,649

31.2%

January through July

145,530

106,896

36.1%

(1): Year 2004 figures have not been reviewed.