TSMC Holds Farewell Party for TSMC-USA President-Emeritus John Luke

Science-Based Industrial Park, Hsin-Chu, Taiwan, August 13, 1998 - Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC or the "Company") (NYSE: TSM) this afternoon held a reception for TSMC-USA President-Emeritus John Luke, who will soon be retiring from the company.

Mr. Luke joined TSMC-USA in 1989 after holding a number of international sales and marketing positions with such electronics industry giants, Signetics, American Microsystems, Monolithic Memories, Fairchild Semiconductor and Texas Instruments.

Dr. Morris Chang, Chairman of TSMC expressed the company's gratitude for Mr. Luke's nine years of service with TSMC.

"I have known Mr. Luke for more than 30 years, beginning when we were colleagues at Texas Instruments. We have benefited greatly from Mr. Luke's profound insights into the North American semiconductor industry and his general management expertise," Dr. Chang said.

"When TSMC-USA started nine years ago, it had only five staff members and 10 customers. Today, TSMC-USA's staff has grown to over 100 people and the customer base has expanded to more than 200 companies. From only several million dollars in the beginning, U.S.-generated revenues have increased substantially over the past two years to between $700 million and $800 million (U.S.), approximately half of TSMC's total annual revenue," Dr. Chang explained.

"Mr. Luke's management style of integrity and warmth has helped TSMC gain the number one position in the United States. By fully practicing TSMC's business philosophy of treating customers as partners, Mr. Luke has built a strong U.S.-based team that has set the standard for service in that country," TSMC President Dr. F.C. Tseng said.

"I believe TSMC-USA, led by President Ron Norris, will continue to play an important role and will work closely with TSMC headquarters, TSMC-Europe and TSMC-Japan to provide the best foundry services for our worldwide customers," Dr. Tseng explained.