TSMC Pioneers Industry's First Rigorous IP Qualification Program For Silicon Intellectual PropertyNew Initiative Extends Industry’s Leading IP Alliance to include Manufacturability and Testability of Cores for SOC Design

HSIN-CHU, Taiwan—March 20, 2001— Taiwan Semiconductor Manufacturing Company (NYSE: TSM) today said it will enhance its “Five Star” IP Alliance to include more robust qualification of silicon intellectual property (IP). Currently, TSMC’s third-party IP Alliance members receive the Five Star rating for their IP when a core is proven in a customer’s production design in TSMC silicon. Under the enhanced program, which is expected to be completed by 3Q01, a Five Star rating will require demonstrated manufacturability, testability and functionality. A Three Star rating will require proven functionality in a TSMC test chip.

“TSMC is raising the bar for IP qualification in the semiconductor industry,” said Peyman Kazemkhani, director of IP marketing for TSMC North America. “This enhanced Five Star IP program is the most aggressive system of its kind, and the reason is clear: we need to ensure that designers can use our partners’ silicon IP with complete confidence. By expanding the industry’s leading portfolio of silicon-proven IP to include these new parameters, we are moving the industry significantly closer to the reality of “drop-in” IP cores.”

TSMC’s new Five Star ratings for testability and manufacturability will be based on the Virtual Socket Interface Association (VSIA) standards for testability, officially known as the Test Data Interchange Formats and Guidelines for VC Providers specification. This specification covers Test Data Interchange formats and Design-For-Test (DFT) guidelines for IP providers.

When IP providers use this standard in their designs, the level of confidence in overall design testability and manufacturability is significantly increased. The standard’s guidelines are well documented to ensure successful incorporation of silicon IP into the SOC design using the VSIA methodology.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry’s leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs and six eight-inch wafer fabs. The Company also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and WaferTech. In 2000, TSMC produced the foundry industry's first 300mm customer wafers and began constructing two dedicated 300mm fabs. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at http://www.tsmc.com.