TSMC Board of Directors Approves Share Buyback Plan

Hsin-Chu Science Park, Taiwan, March 23, 2004 – Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (TSE: 2330; NYSE: TSM) today held a special meeting of the Board of Directors, at which the Board approved a share buyback plan to repurchase the Company’s common shares traded on the Taiwan Stock Exchange for the interests of TSMC shareholders. The repurchased shares will then be cancelled and deducted from TSMC’s current outstanding shares. TSMC plans to buy back up to 300,000,000 TSMC common shares at price in the range of NT$38.5 to NT$95.0 per share from March 24, 2004 to May 23, 2004.

TSMC Spokesperson and Vice President Ms. Lora Ho noted that, due to the recent plunge of TAIEX after the election, TSMC decided to buy back TSMC common shares for the interests of our shareholders. This is the first time for TSMC to adopt a share buyback plan and the actual amount of the repurchase will depend on the movement of the Company’s share price.