TSMC Reports No Initial Damage to Plants or Equipment

Hsinchu, Taiwan, September 21, 1999- Taiwan Semiconductor Manufacturing Company (NYSE: TSM) indicated as of 11:00 a.m. that the company's buildings, HVAC systems, water distribution and power distribution systems successfully withstood the effects of a major earthquake that shook Taiwan area early Tuesday morning.

Normal electrical power has yet to be restored to Hsinchu Science Park where TSMC and other major semiconductor companies are located. Upon the restoration of full power, the company will be able to better assess the impact of the quake on overall wafer production. TSMC does expect that there will be some impact to this month's production.