HSIN-CHU, Taiwan—April 4, 2002—Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today announced that the Company has obtained the consent of three prestigious experts in international economics and technology to serve as the independent board members and supervisor of TSMC. The proposed new board members are Professor Lester Thurow of MIT and Sir Peter Bonfield, former CEO of British Telecommunications. Professor Michael Porter of Harvard University has been invited to serve as supervisor to the board. TSMC expects their participation to further strengthen the corporate governance and globalization of the Company.
Since its founding days 15 years ago, TSMC has committed to being a world-class corporation. The company has achieved outstanding success in the global foundry industry, establishing new benchmarks in foundry business management, technology development, customer service, market expansion and corporate citizenship. Nevertheless, in light of the shining future of the semiconductor industry, TSMC must make more efforts if it wants to advance to another level. Further improvement of its corporate governance and globalization is one of the major tasks ahead.
TSMC Chairman, Dr. Morris Chang, indicated that a sound and efficient board is the core of successful corporate governance. The recruit of more professional independent board members with a global perspective can further strengthen the structure and functions of the board, which will contribute considerably to enhance corporate competitiveness. Hence, TSMC invited Mr. Stan Shih, Chairman of the Acer Group, to join its board two years ago. Mr. Shih, equipped with his unique business management expertise and broad global perspective, successfully played the role of an independent board member. Early February this year, TSMC board approved an amendment to the Articles of Incorporation in which called for an increase of the number of board members from the current seven to nine. The company is thus able to obtain the consent of Professor Thurow, Sir Bonfield and Professor Porter to serve as TSMC’s board members and supervisor.
Two major reasons make the three prestigious experts to join TSMC board: the foundry business model created by TSMC and its infinite potential, and their respective friendships with Dr. Chang. Sir Bonfield, who has been friends with Dr. Chang for almost three decades, worked with Dr. Chang closely at Texas Instruments Inc. between 1966 and 1981. Professor Thurow, well-known as a “trend master,” has associated with Dr. Chang for over 15 years. In recent years, Professor Thurow has accepted several invitations by Dr. Chang to speak at a number of conferences and activities sponsored by TSMC. Although Professor Porter, dubbed the “strategy master,” has known Dr. Chang for only three years, he has collaborated with Dr. Chang to study the core competitiveness of TSMC in the foundry industry, a research project that has evolved into a prestigious Harvard Business School case study.
Given the prominent reputation of all three candidates, Dr. Chang expects wide support from the majority of shareholders in the shareholder meeting on May 7th to elect Professor Thurow and Sir Bonfield as independent board members. On the same day, Prof. Porter will serve as the company’s supervisor as an institutional representative. By then, the team consisting of the existing and new board members and supervisor will include first-class industry experts and scholars around the world. The prestigious background of the board members and supervisors will represent not only the first of its kind in Taiwan, but also the standard of a world-class corporation. A board and its supervisor so well-versed in the execution of corporate governance and globalization management will certainly lead TSMC toward a bright, promising future