TSMC Board of Directors Unanimously Re-elects Dr. Morris Chang as Chairman of TSMC

Science-Based Industrial Park, Hsin-Chu, Taiwan, June 3, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM) today held the first meeting of the Board of Directors of the Ninth Term, at which the Board unanimously re-elected Dr. Morris Chang as Chairman of TSMC.

TSMC Spokesperson Mr. Harvey Chang noted that, at its meeting, the Board of Directors also:

1. Authorized the Chairman to determine the record date for distribution of stock dividends to common share holders as approved at the 2003 Regular Shareholders Meeting.

2. Approved the change of TSMC’s registered address from “No. 121, Park Avenue 3, Science-Based Industrial Park, Hsin-Chu, Taiwan, ROC” to “No. 8, Li-Hsin Road 6, Science-Based Industrial Park, Hsin-Chu, Taiwan, ROC”.

3. Approved the establishment of a Compensation Committee of the Board of Directors to execute corporate governance improvements.

4. Approved TSMC’s sponsorship of the issuance of American Depository Receipts (“ADRs”) by the Development Fund and certain other shareholders to dispose of up to 450,000,000 TSMC common shares in the form of ADRs.