TSMC 1998 Revenue Exceeded NT$ 50 billion

Hsin-Chu, Taiwan, January 8, 1999 -- Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), ("TSMC" or the "Company") today announced that its revenues for December, 1998 were NT$3,459 million. Total sales for fiscal year 1998, ended December 31, were a record of NT$50.233 billion, up 14.3 percent over 1997 revenues of NT$43.936 billion. Net income for 1998 was estimated to be NT$15.34 billion and earnings per share were estimated to be around NT$2.54.

The worldwide semiconductor industry experienced a downturn in 1998. The total market value decreased approximately 10 percent from 1997. Nevertheless, the fact that TSMC recorded a 14.3 percent sales growth in 1998 shows the strong competitive advantages of the Company.

Meanwhile, TSMC spokesman, YC Huang pointed out that the Company's booking volume in December 1998 reached a monthly record high. It is expected that TSMC's 1999 sales and profits would outperform those of 1998.

TSMC's 1998 financial results are being reviewed by independent auditors. The final results will need to be approved by the TSMC Board of directors.