TSMC Set June 26 Record Date for Common Share Dividend

Hsinchu, Taiwan, R.O.C. – June 6, 2006 -- TSMC (TAIEX: 2330, NYSE: TSM) today set June 26, 2006 as the record date for its common stock dividend. The ex-dividend date for TSMC common shares shall be June 20, 2006. The dividend includes a cash dividend of NT$2.4991 and a stock distribution of 0.0299903 shares for each common share.

As required by Article 165 of Taiwan’s Company Law, the shareholders' register shall be closed for five days prior to the record date (June 22 through June 26, 2006) for registration transfer.

The above-mentioned dividend was calculated based on the total amount of profits to be distributed and capital surplus to be capitalized, as approved by the Company’s shareholder meeting on May 16, 2006, and the actual number of common shares outstanding on the record date for said dividend distribution. As a result of the employee stock options exercised between the day the Company’s board proposed said dividend distribution, and the record date of the distribution, the number of common shares outstanding has increased slightly, resulting in a miniscule difference in the per- share dividends from the per-share amount proposed by the Company’s board on February 14, 2006.

The ex-dividend date for TSMC American Depositary Shares (ADSs) will also be June 20, 2006. The record date for TSMC ADSs entitled to participate in this cash and stock dividends will be June 22, 2006. Holders of ADSs are encouraged to check with their securities brokers for receipt of the cash and stock dividend in their own accounts. Any questions regarding this upcoming dividend may be directed to Ms. Emi Mak at CitiBank, N.A. (Tel: 1-212-816-6693 / email: emi.p.mak@citigroup.com)