Tsmc And Conexant Announce Long-term Technology License And Wafer Supply AgreementProgram To Expand Access To Specialty Radio Frequency Process Technologies For The Communications Market

NEWPORT BEACH, Calif. and HSIN-CHU, Taiwan, Jan. 30, 2001 – Conexant Systems, Inc. (NASDAQ: CNXT) and Taiwan Semiconductor Manufacturing Company (TAIEX: 2330, NYSE: TSM) today announced that the two companies have entered into a long-term semiconductor cross-licensing wafer supply and technology agreement. Under this agreement, TSMC will license advanced specialty radio frequency (RF) process technology intellectual property (IP) from Conexant to be used for bipolar and silicon germanium bipolar complementary metal oxide semiconductor (SiGe BiCMOS) applications and will supply foundry capacity for these technologies to Conexant.

TSMC will take advantage of the licensed technology to more quickly bring its own high-performance foundry processes to the marketplace, particularly to satisfy requirements in the growing networking and wireless communications markets.

“Conexant is a leader in advanced specialty process technologies for the communications market,” said Dr. F.C. Tseng, president of TSMC. “We believe this agreement will allow us to accelerate delivery of these technologies to the broad foundry market.”

“TSMC is the foundry industry leader in both total volume output and breadth of technology,” said Dwight W. Decker, chairman and CEO of Conexant. “This agreement strengthens a vital relationship with a world-class supplier, provides a second source for Conexant products, and leverages our investments and leadership position in advanced specialty RF process technologies. We are delighted with this agreement and look forward to working closely with TSMC for many years to come.”

Initial production of the first generation specialty technology at TSMC is expected in the second half of 2001, with further advanced-generation technologies coming online in the following quarters.

About TSMC

TSMC is the worlds largest dedicated semiconductor foundry, providing the industry’s leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs and six eight-inch wafer fabs. The Company also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and WaferTech. In year 2000, TSMC produced the foundry industry's first 300mm customer wafers and began constructing three dedicated 300mm fabs. Fabrication processes offered by TSMC include CMOS logic, mixed-mode/RF, volatile and non-volatile memory, and BiCMOS. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at www.tsmc.com.

About Conexant Systems, Inc.

With revenues of $2.1 billion in fiscal 2000, Conexant is the world's largest independent company focused exclusively on providing semiconductor solutions for communications electronics. With more than 30 years of experience in developing communications technology, the company draws upon its expertise in mixed-signal processing to deliver integrated systems and semiconductor products for a broad range of communications applications. These products facilitate communications worldwide through wireline voice and data communications networks, cordless and cellular wireless telephony systems, personal imaging devices and equipment, and emerging cable and wireless broadband communications networks. The company organizes its activities into two business areas: Internet infrastructure, which consists of the Network Access products, and personal networking, comprised of Digital Infotainment, Personal Imaging, Wireless Communications and Personal Computing products. Conexant is a member of the S&P 500 and Nasdaq-100 Indices. For more information, visit Conexant at www.conexant.com.

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