TSMC Fab 5 wins the Top Fab 2000 honorby Semiconductor International with outstanding performance

Science-Based Industrial Park, Hsinchu, Taiwan, May 26, 2000 - Since its establishment in October 1997, TSMC Fab 5 (TSMC: Taiwan Semiconductor Manufacturing Company Ltd.; "the Company"; NYSE: TSM) has advanced rapidly in its process capabilities and service qualities. Due to its outstanding performance, Fab 5 was cited as one of the three Top Fabs 2000 announced by Semiconductor International just days ago.

TSMC Fab 5 is the Company's third 8-inch fab located in the Science-based Industrial Park in Hsinchu, Taiwan. Construction of the facility started in November 1995. At that time, it was the first fab in Taiwan to adopt the design of a configuration built on two floors of equal size. Fab 5 began volume production in early 1998 with 0.35 micron logic technology, and the full capacity is expected to reach 40,000 8-inch wafers per month in the end of 2000.

According to Doctor T. Y. Chiu, Director of Fab 5, the facility advances one major technology generation per year in order to improve customers’ competitive edge when they introduce new products to the market. Fab 5 offered 0.35 and 0.30 micron logic products in 1998, and advanced to 0.25 and 0.22 micron technologies in 1999. This year, Fab 5 already possesses the most advanced 0.18 and 0.15 micron technologies. The rapid advancement of its process capabilities and outstanding production yield are the keys to winning the honor of Top Fabs 2000.

TSMC Fab 5 also works on other aspects to improve its competitiveness. Its energy conservation strategies alone save more than US $5 M in operating costs and reduce CO2 emissions by approximately 44,000 tons per year. Due to its efforts in environmental protection and concrete contributions in energy conservation, Fab 5 was also cited the “1999 Outstanding Manufacturer for Energy Conservation” by the Energy Committee of the Ministry of Economic Affairs in November 1999.

In addition, TSMC Fab 5 received recognition for its fire safety efforts and was awarded the “AAA damage prevention and fire safety certificate” by Cigna Insurance in March 1999. The AAA certification system is the risk assessment certification system developed by Cigna Insurance for its global insurance customers and considered one of the most trustworthy risk certification systems worldwide. TSMC’s Fab 5 is the first fab in the world to receive the AAA rating in the system’s history of seven years.

In addition to TSMC Fab 5, the other two winners of Semiconductor International’s Top Fab honors for 2000 are IBM's Burlington, Vt., fab and Semiconductor 300 in Dresden, Germany, a joint venture fab by Motorola and Infineon.

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