TSMC Secondary Offering of 100 million ADSs at US$10.77 per share

Hsinchu, Taiwan, November 11, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (“TSMC”, “the Company”) stated that in the evening of November 10, 2003 New York time, the Company’s secondary offering of 100 million American Depositary Shares (ADSs) by Koninklijke Philips Electronics N.V. (“Philips”) was priced at US$10.77 per ADS. Each TSMC ADS represents five common shares of TSMC.

Ms. Lora Ho, TSMC spokesperson, vice president and chief financial officer, noted that the success of TSMC’s secondary offering of ADSs shows the recognition by global investors of TSMC’s performance. After this successful offering, TSMC’s outstanding ADSs increased to approximately 14.5 percent from approximately 12 percent of its total share capital. The offering was entirely secondary shares from Philips.

The offering price of US$10.77 per ADS (equivalent to NT$73.18 per common share) represents a 7.61 percent premium to the November 10, 2003 closing price of NT$68.00 for the TSMC common shares that trade on the Taiwan Stock Exchange. In addition, the offering price of US$10.77 per ADS is equivalent to the closing price of TSMC’s ADSs on November 10, 2003. The TSMC ADS offering totals US$1,077 million.

The Final prospectus relating to this offering may be obtained from Goldman Sachs & Co. at 85 Broad Street, New York, New York 10004, USA or Merrill Lynch & Co. at North Tower, World Financial Center, New York, New York, 10281, USA.