TSMC August 2007 Sales Report

Hsinchu, Taiwan, R.O.C. – September 10, 2007 - TSMC (TAIEX: 2330, NYSE: TSM) today announced its net sales for August 2007: on an unconsolidated basis, sales were NT$29,199 million, an increase of 1.5 percent over July 2007 and an increase of 8.1 percent over August 2006. Revenues for January through August 2007 totaled NT$194,163 million, a decrease of 8.9 percent compared to the same period in 2006.

On a consolidated basis, net sales for August 2007 were NT$ 30,019 million, an increase of 1.8 percent over July 2007 and an increase of 10 percent from August 2006; revenues for January through August 2007 totaled NT$199,317 million, a decrease of 7.4 percent compared to the same period in 2006.

"Due to some customers’ requested pull-in, TSMC’s third quarter 2007 financial performance is expected to be better than the guidance given on July 26, 2007: Revenue is expected to be between NT$87 billion and NT$89 billion. Both gross profit margin and operating profit margin are expected to be better than the high end of the previous guidance by less than one percentage point,” said Ms. Lora Ho, VP and Chief Financial Officer of TSMC.