TSMC Shareholders Approved Stock and Cash Dividends

Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM) today held a shareholders’ meeting at which the shareholders approved the proposal for distribution of 2003 profits.

TSMC Spokesperson and Vice President Ms. Lora Ho stated that the major conclusions of this shareholders’ meeting are as follows:

1. Shareholders approved the 2003 Business Report and Financial Statements. Revenue for 2003 totaled NT$201,904 million and net income was NT$47,259 million, with earnings per share of NT$2.33.

2. Shareholders approved the proposal for distribution of 2003 profits: (1) A dividend of NT$2 per share was proposed to the common shareholders, including a stock dividend of NT$1.4 per share and a cash dividend of NT$0.6 per share. The proposed dividend is calculated based on TSMC’s current outstanding shares. In addition, TSMC is in the duration of executing stock buy-back (from March 24 to May 23). In accordance with the ROC laws, treasury stock bought back is not entitled to receive dividend. As a result, the above stock and cash dividends will be slightly higher. (2) Employees’ profit sharing will be distributed in both stock and cash. Profit sharing will amount to NT$2,726 million distributed in stock at par value and NT$681 million distributed in cash.