TSMC June Sales Set Record High

Hsinchu, Taiwan, July 8, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (“the Company”) (TAIEX: 2330, NYSE: TSM) today said that net sales for June 2004 reached a record high, totaling NT$22,519 million. This was a 3.7 percent increase over May 2004 sales and marked the third consecutive monthly record. As a result, net sales for the second quarter of 2004 also hit a record high of NT$64,870 million.

On a year-over-year basis, net sales for June 2004 increased 26.2 percent. Revenues for January through June 2004 totaled NT$122,382 million, an increase of 37.1 percent over the same period in 2003.

Ms. Lora Ho, TSMC vice president and chief financial officer, noted that, “TSMC’s wafer shipments for June 2004 continued to grow over May 2004 due to increased market demand. This resulted in sales revenues for June 2004 rising to a record high.”

Sales Report: (Unit: NT$ million)

Net Sales

2004(1)

2003

Growth Rate

June

22,519

17,846

26.2%

January through June

122,382

89,247

37.1%

(1): Year 2004 figures have not been reviewed.