Science-Based Industrial Park, Hsinchu, Taiwan, September 5, 2000 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM) today held a special meeting of its board of directors. At the meeting, the directors present authorized the issuance of new shares and approved the re-appointment of Mr. J. B. Chen as Vice President.
Ms. K.C. Chen, TSMC Spokesperson and Senior Vice President, stated that the directors approved the issuance of 1.3 billion Preferred A shares under the terms and conditions of Preferred A Shares Offering. The issuing price is NT$10 per share and the issuing amount will total NT$13 billion. The funds are expected to be used to ramp the manufacturing capacity of Fab 12, which is currently under construction, to 15,000 wafers per month.
Holders of Preferred A Shares of TSMC shall be entitled to the distribution of cash dividend at 3.5% of the actual issuing price per annum. Distribution of the cash dividend shall be made once each year. Meanwhile, holders of Preferred A Shares shall not be entitled to receive cash dividend or stock dividend from distribution of profits or capital reserves. Preferred A Shares shall have a tenor of two and half years and cannot be converted into common shares of TSMC.