November 10, 1999, Hsin-chu, Taiwan- The Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the "Company") (TAIEX: 2330, NYSE: TSM) announced today that the Board of Directors and Supervisors yesterday approved November 10, 1999 as the record date of converting Entitlement Certificates issued pursuant to the terms and conditions of the Company's 1997 Eurodollar Convertible Bond into common shares of the Company. As a result, TSMC's total paid-in capital would reach NT$76,708,817,170. Meanwhile, several investment plans, including building a twelve-inch fab, were also approved by the Board of Directors and Supervisors. The approved total investment reached NT$77,880million, which is a significant index of the Company's future development.
The Company outlined several important decisions made by the Board of Directors and Supervisors as follows:
The Board of Directors and Supervisors approved the capital expenditure in the amount of NT$58,953 million mainly to expand the capacity and upgrade the technology level toward 0.15-micron for Fab 5 and Fab 6 in the year of 2000. In addition, the above mentioned capital increase will be used to expand capacity of copper technology in Fab 3, Fab 4, and Fab 6 as well as to set up a bumping line in Fab 1 to meet customers!| growing demands for FCIP (Flip Chip in Package) in the future. The Board of Directors and Supervisors approved the capital expenditure in the amount of NT$18,608 million to proceed with the building and facility construction for the Fab 12 and Fab 7. The Board of Directors and Supervisors approved November 10, 1999 as the record date of converting Entitlement Certificates issued pursuant to the terms and conditions of the Company's 1997 Eurodollar Convertible Bond into common shares of the Company. The Board of Directors and Supervisors approved the investment of US$10 million in Horizon Ventures Fund I, L.P. The Board of Directors and Supervisors approved the appointment of Dr. John Yue as Vice President of Quality & Reliability.
Mr. YC Huang, Spokesman for TSMC, said that TSMC's first twelve-inch fab - Fab 12 - is scheduled to ground break in the first quarter of 2000. The production capacity of the Company's Fab 12 will be 25,000 twelve-inch wafers (56,000 eight-inch wafers equivalent) per month.
On the other hand, the ground breaking of the Company's Fab 7 in the Tainan Science-Based Park ("TSIP") is scheduled in May or June of the year 2000. TSMC's Fab 7 will be an eight-inch fab and will have a production capacity of 40,000 eight-inch wafers per month with the technologies of 0.18, 0.15, 0.13, and 0.10-micron. The production of the Company's Fab 7 is expected to begin in the end of 2001. Mr. Huang said, "TSMC is the first IC company which entered the TSIP and has leased 40 hectares of land form the TSIP Administration for the Company's Tainan site. In addition to the Fab 6 and fab 7, four other state-of-the-art fabs are expected to join TSMC's production line on the Company's Tainan site in TSIP in the future. Meanwhile, TSMC's also plans to build new mask shop, testing and R&D facilities in TSIP."