TSMC Top Managers to Visit Tainan County Mayor to Kick-off NT$400 Billion Investment Plan in Tainan Science-Based Industrial Park

Science-Based Industrial Park, Hsin-Chu, Taiwan, April 10, 1997 - TSMC president Mr. Donald Brooks tomorrow will lead several vice presidents and top managers of TSMC to Tainan County to visit with Mayor Tang-Shan Chen and his staff. Both parties will have a discussion of Tainan county government support for the Tainan Science-Based Industrial Park (TSIP). Details of infrastructure plans and other TSMC requirements for its new wafer fabs to be built in the industrial park will all be addressed. TSMC's NT$400 billion manufacturing center project in TSIP now officially underway.

TSMC has been in business for just over ten years, and the company now has more than 4,300 employees, over half of whom hold a college degree or higher. TSMC currently operates two 6-inch wafer fabs (Fab I and II), and two 8-inch wafer fabs (Fab III and IV), all of which utilize state-of-the-art technology, and can claim first class product quality, production capacity and service. The two 8-inch wafer fabs are now under construction, Fab V in Taiwan and a joint venture fab in Washington, USA. Both these new fabs will begin volume production in 1998 and will make a significant contribution to TSMC in capacity expansion and technology advancement.

In the next ten years, more and more IC applications such as 3D Multi-media, ISDN, High Speed Modems, DVDs, Set-Top-Boxes, Digital Cellular Phones, Video Phones and Digital Cameras, will emerge and gain wide acceptance among consumers. The world-wide IC market is thus expected to grow to US$300 billion by the year 2000. Mr. Donald Brooks, president of TSMC, emphasized that in order to meet ever-increasing customer demand over the next three to ten years, it is essential that the company continues to build new fabs. Because of its efficient organization, plentiful land and high quality human resources, TSIP is the best possible location for TSMC to expand its manufacturing facilities. Moreover, building fabs in TSIP will help TSMC reduce risk by broadening its Taiwan manufacturing base beyond Hsin-chu Science-Based Industrial Park where the company made heavy investments in the early stages.

Mr. Brooks stressed that TSMC is moving energetically to bring its long-term investment plans in line with the national policy of developing southern Taiwan. The NT$400 billion, ten-year "TSIP Manufacturing Center" project has been carefully formulated, Mr. Brooks said, and will be carried out step by step. To date, the company has completed the procedures to acquire a 40-hectare parcel of land and has decided to build its next wafer fab, Fab VI, in the TSIP. The date for the ground breaking ceremony at TSMC FabVI will depend on the progress of TSIP's construction, and ceremony could take place as early as the second half of this year. TSMC Fab VI will require investment of up to NT$40 billion, and will create more than 1000 high-tech career opportunities before the turn of the century.

TSMC's investment in its "TSIP Manufacturing Center" project is even greater than the sixth naphtha cracker project, the "Liu Ching Project" being carried out by Formosa Plastics Group. In the next ten years, TSMC will build six more advanced wafer fabs in TSIP, and along with the fabs e-beam mask production center, testing/assembly center, R&D center and other facilities such as employee dormitories will also be constructed. Investment in the 8-inch wafer fab has been estimated at NT$40 billion, and the 12-inch wafer fab will cost an estimated NT$80 billion. Together with the other associated facilities the company plans to construct, total investment in TSMC's "TSIP Manufacturing Center" project could go as high as NT$400 billion, indeed a significant contribution to the future development of Southern Taiwan.

In addition to the monetary investment, the company's "TSIP Manufacturing Center" will interact closely with