TSMC Board of Directors Proposes NT$1.00 Stock Dividend

Science-Based Industrial Park, Hsinchu, Taiwan, February 8, 2002 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today held a meeting of the Board of Directors, at which the Board adopted a proposal recommending distribution of a dividend of NT$1.00 per common share. The proposal will be discussed and brought to a vote at the Company’s annual shareholders' meeting scheduled for May 7, 2002.