TSMC Announces 2001 Financial Forecast

Hsinchu, Taiwan, April 30, 2001 – Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (“TSMC” or the “Company”) today announced its financial forecast for 2001. The net sales for fiscal year 2001, which ends December 31, are estimated at NT$149,039 million, representing a 10% decrease over net sales in fiscal year 2000. Net income for year 2001 is estimated at NT$25,737 million, representing a 60% decrease over 2000.

Ms. K. C. Chen, TSMC spokesperson, stated that the overall semiconductor market in the first half of 2001 is in serious decline compared to the rapid growth of the semiconductor market in year 2000. The visibility of the market conditions in the second half of 2001 is still limited. The statements in this annual financial forecast involve uncertainties which may cause the actual results to be materially different from those contained in the forecast statements, which is published in accordance with the ROC government’s regulations. TSMC will remain transparent and keep publishing the observance on the semiconductor market in the following months.

Forward-Looking Statements

Except for statements in respect of historical matters, the statements contained in this Release are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of Taiwan Semiconductor Manufacturing Company Limited to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Such factors include, among others, the factors set forth in Exhibit 2 of the Form 6-K submitted to the United States Securities and Exchange Commission on April 30, 2001 in respect of the forecasted financial statements. The forecasted financial statements included herein were published on April 30, 2001 in accordance with the Republic of China Securities and Futures Commission’s “Guidelines for Publication of Financial Forecasts of Public Companies” as a result of our mergers with Worldwide Semiconductor Manufacturing Corp. and TSMC-Acer Semiconductor Manufacturing Corp and the offering of Preferred A Shares on November 29, 2000. The attached financial forecasts reflect the current belief of TSMC as of this date and TSMC undertakes no obligation to update this forecast for events or circumstances that occur subsequent to this date.