TSMC and RMI Collaborate on 90nm Process for

SAN JOSE, CA — June 7, 2005 —Raza Microelectronics Inc. (RMI), an innovative leader in silicon solutions designed to transform the Information Infrastructure, and Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM), the world's largest dedicated semiconductor foundry, today announced the 2005 delivery of RMI’s XLR TM processor, the first Thread Processor TM architected for Connected Computing built on TSMC’s 90nm process technology. The XLR processor, available at 1.2 to 1.5 GHz, is the first processor of this class to break the Gigahertz barrier with TSMC. The low-k 90nm Nexsys Technology for SoC(SM) greatly improves processor performance and limits static leakage which enables the integration of multiple processor cores, application-aware accelerators, large cache memories and many high-speed interfaces onto a single chip. “The relationship between RMI and TSMC is based on a strong working foundation,” said Atiq Raza, Chairman and CEO of RMI. “Throughout the processor design cycle, RMI and TSMC worked closely to correlate device simulation with manufacturing data and comprehend fabrication guidelines and design rules. We are quite impressed with the performance and yield characteristics of the TSMC Nexsys 90nm process. The results of our collaboration are clearly evident in the RMI XLR processor, which has met or exceeded our power, frequency and yield design targets. At RMI we are focused on developing disruptive solutions for the Information Infrastructure and TSMC’s technology allows us to deliver feature rich products with a significant value proposition for our customers.” "The RMI team brings a wealth of experience in designing high performance semiconductor solutions optimized for yield and reliability,” said Rick Tsai, president of TSMC. “RMI and TSMC have collaborated by combining our foundry process development and manufacturing capabilities with RMI’s silicon design expertise to bring to market revolutionary products in the Enterprise and Access markets - the XLR Thread Processor fabricated on TSMC’s 90nm technology as well as the Orion TM Intelligent Access TM processor on the TSMC 130nm process. I'm delighted to be working with Atiq Raza's new company and expect to continue the successful business relationship that I have had with his companies over the last decade.” The XLR processor is based on a unique threaded architecture supporting 32 threads on RMI-enhanced MIPS64® CPU cores. With an operating frequency of up to 1.5GHz, it’s further supported by highly integrated networking and application-aware accelerators. The XLR processor is a key enabler for the growing convergence of networking and computing applications -- such as integrated security (Firewall, VPN, Anti-Virus, Intrusion Prevention), web services, virtualized storage, load balancing, server offload and intelligent routing and switching -- in which content-awareness and application intelligence are becoming increasingly important. TSMC 90nm Nexsys technology has received wide acceptance in the market and is in very fast ramp stage. More than sixty tapeouts are in either production or pilot/qualification stage, and more than one hundred tapeouts are expected by the end of 2005. TSMC is shipping multiple thousands of 12-inch 90nm wafers per month from Fab 12. Fab 14, our second 300mm production fab, will join the 90nm production in the second half of 2005 to meet the strong 90nm demand. TSMC’s Nexsys 90nm low-k technology for system-on-chip (SoC) design features the industry’s first full 90nm design system, including the industry’s most extensive portfolio of silicon-proven IP and libraries and the industry’s first complete design flow that responds specifically to nanometer design challenges. The Nexsys 90nm logic family includes general-purpose process (G) low-power (LP) and high-speed (HS) options. Each supports multiple Vt options for improved power/speed/leakage tradeoffs.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry industry's largest portfolio of process-proven library, IP, design tools and reference flows. The company operates two advanced twelve-inch wafer fabs, five eight-inch wafer fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at its wholly-owned subsidiary, WaferTech and TSMC (Shanghai), and its joint venture fab, SSMC. In early 2001, TSMC became the first IC manufacturer to announce a 90-nm technology alignment program with its customers. TSMC's corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please see http://www.tsmc.com.

About RMI

RMI (Raza Microelectronics, Inc.) is an innovative leader in silicon solutions designed to transform the Information Infrastructure. The company’s portfolio of products provides the foundation for the next generation of scalable Enterprise, Access and Digital Imaging systems. The XLR™ Processor is the first Thread Processor™ for Connected Computing while the Orion™ Intelligent Access™ Processor provides the industry’s first integrated solution delivering advanced packet services over existing transport infrastructure. RMI’s XL™ Processor is a power-efficient solution optimized for advanced digital imaging applications. As a silicon execution machine, RMI’s unique ability to rapidly deliver semiconductor solutions enables system manufacturers to quickly respond to changing market needs. RMI is headquartered in Cupertino, California with offices and development centers in China, India and Japan. For more information, please visit www.razamicroelectronics.com.