TSMC Modifies Its Business Guidance Upward for Q3 2001

Hsinchu, Taiwan, September 21, 2001– Taiwan Semiconductor Manufacturing Company Ltd. (“ TSMC” or “ the Company” ) (TAIEX: 2330, NYSE: TSM), today announced that the Company is taking a more optimistic view than the guidance released on July 26, 2001. TSMC expects to see its Q3 2001 operating income to be at least five times of that of Q2 2001. It is also expected that TSMC will have better operating performance in Q4 2001 than in Q3 2001.