TSMC Set June 19 Record Date for Common Share Dividend

Hsinchu, Taiwan, R.O.C. – May 30, 2005 -- TSMC (the “Company”) (TAIEX: 2330, NYSE: TSM) today sets June 19, 2005 as the record date for its common stock’s dividends. The ex-dividend date for TSMC common shares shall be June 13, 2005. Share dividends include a cash dividend of NT$1.9998 and a stock dividend of 0.0499971 shares for each common share.

As required by Article 165 of the Company Law, the shareholders' register shall be closed for five days prior to the record date, i.e., from June 15 through June 19, 2005, for registration transfer.

The above mentioned share dividends are calculated based on the total amount of profits to be distributed, which was approved in the Company’s shareholder meeting on May 10, 2005, and the actual number of common shares outstanding on the record date for the said dividend distribution. As a result of the Company’s employee exercising stock options during the period between the day the Company’s board proposed the said dividend distribution, and the record date of such distribution, the number of common shares outstanding has increased slightly, resulting in a minuscule difference in the per share dividends from the per share amount that was proposed by the Company’s board on February 22, 2005.

The ex-dividend date for TSMC American Depositary Shares (ADSs) will also be June 13, 2005. The record date for TSMC ADSs entitled to participate in this cash and stock dividend will be June 15, 2005. Holders of ADSs are encouraged to check with their securities brokers for receipt of the cash and stock dividend in their own accounts. Any questions regarding this upcoming dividend may be directed to Ms. Emi Mak at CitiBank, N.A. (Tel: 1-212-816-6693 / email: emi.p.mak@citigroup.com)