TSMC Becomes First Foundry to License Advanced Logic Process To Integrated Device ManufacturerTSMC Licenses Deep-Submicron Technology to National Semiconductor

Science-Based Industrial Park, Hsinchu, Taiwan, June 28, 2000 -- Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM), the world's largest dedicated semiconductor foundry, today became the first foundry in history to license its leading-edge logic technology to a major integrated device manufacturer (IDM).

This agreement sets TSMC apart from its foundry competitors who have consistently paid IDMs for technology in order to try to stay technically abreast of TSMC.

Under the agreement, TSMC will license its leading-edge logic processes to National Semiconductor (NYSE:NSM) for implementation at National’s South Portland, Maine manufacturing facility.

“This is a landmark agreement in the semiconductor industry,” said Morris Chang, chairman of TSMC. “The agreement underscores TSMC’s global leadership position in process technology, as it marks the first time that a foundry’s advanced logic process has been licensed to an integrated device manufacturer (IDM) to be used as that company’s primary deep-submicron technology. We applaud National for choosing to partner with TSMC in this effort. We believe this agreement will strengthen the technology and market positions of both companies substantially.”

“For the past year we've been looking for a technology partner to accelerate our development of intellectual property and manufacturing processes at our facility in South Portland, and now we are happy to announce we have a partnership with the best partner in the world: TSMC,” said Brian L. Halla, president and CEO of National Semiconductor. "This makes the South Portland plant more valuable to us than ever," he said.

"We chose TSMC based on our years of experience in working with them, which makes us confident with their ability to deliver," Halla added.

Under the terms of the agreement, TSMC will transfer several of its logic and embedded memory processes, ranging from 0.25 microns to 0.10 microns, to National Semiconductor. The technology transfer is limited to National Semiconductor’s South Portland site only. The technology transfer will provide the South Portland site with a roadmap for deep-submicron process technology, significantly enhancing its current ability to serve customers with requirements for leading-edge technology.

In addition to the recognition by a major IDM that its process technology is indeed among the leading technology roadmaps globally, TSMC benefits by gaining access to surplus capacity at the South Portland site, and by receiving substantial licensing and royalty fees.

About National Semiconductor

National Semiconductor provides system-on-a-chip solutions for the information age. Combining real-world analog and state-of the-art digital technology, the company's chips lead many sectors of the personal computer, communications, and consumer markets. With headquarters in Santa Clara, California, National reported sales of more than $2.1 billion for its last fiscal year and has about 10,500 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry’s leading process technology, library and IP options and other leading-edge foundry services. With the mergers of WSMC and TASMC (effective June 30, 2000), TSMC is constructing or operating 11 fabs and has substantial capacity commitments at three additional facilities jointly operated by TSMC and its partners. In 2000, TSMC expects to have the capacity for nearly 3.4 million 8-inch equivalent wafers. Fabrication processes offered by TSMC include CMOS logic, mixed-mode, volatile and non-volatile memory, and BiCMOS. TSMC’s corporate headquarters are in Hsin-Chu, Taiwan.