TSMC to Receive 85 Percent of Normal Power by Saturday Night

San Jose, CA September 23, 1999- Taiwan Semiconductor Manufacturing Company (NYSE: TSM) said at 11:00 a.m. PDT, that the company has secured an agreement from local power companies to begin receiving 85 percent of normal electrical power by Saturday night Taiwan time.

"With our own generator power as a supplement, this is adequate to get us up and running," said Ron Norris, senior vice president of worldwide marketing and sales for TSMC. "Today we received some additional power allocation and are running at about 25 percent. This is sufficient to get the exhausts running and some air conditioning going in the fabs. We have also been able to bring a portion of the DI water plants online."

By rotating currently available power from machine to machine, the company has been able to execute preliminary equipment check-out and work-in-progress (WIP) evaluation. Early assessments indicate some equipment repairs may be necessary and some wafers may be lost.

A first pass WIP status report is expected to be released to customers by the end of the day Monday.

TSMC is reporting minimal damage to mask shop and test areas, so operations in these areas may fully resume within a day. The company also reports that customs offices and freight forwarders are up and running. Over the last couple of days, TSMC has shipped some material that was at the quality control stage prior to the earthquake.