TSMC Board of Directors Approves Semi-annual Financial Statements for First Half of 1998

Science-Based Industrial Park, Hsin-Chu, Taiwan, August 11, 1998 - The Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the "Company") (NYSE: TSM) Board of Directors today approved the semi-annual financial statements for the first half of 1998 and the appointment of Mr. S.H. Lee as the Vice President of the Company.

TSMC spokesman, Mr. YC Huang, outlined several important decisions made by the Board of Directors as follows:

The Board of Directors approved the semi-annual financial statements for the first half of 1998 prepared by the auditors. Net sales for the first half of 1998 were NT$27,337 million; net income was NT$10,705 million, and earnings per share were NT$1.77. The Board of Directors approved the appointment of Mr. S.H. Lee as TSMC Vice President in charge of human resources. The Board of Directors approved the listing and trading of additional 10,591,650 American Depositary Shares (ADSs) to be issued in connection with the Company's 1997 stock dividend of 0.45 Common Share per Common Share outstanding pursuant to NSYE listing policy