TSMC Reiterates Long-standing Partnerships with Customers

HSIN-CHU, Taiwan, August 26, 1999- "TSMC has a consistent pricing policy that emphsizes long-standing partnerships with customers and creates win-win solutions for both customers and TSMC. Once a price is set, we do not arbitrarily change it when demand goes up," declared Mr.YC Huang, spokesman for TSMC. Mr. Huang was responding to a report in today's newspaper that TSMC plans to raise prices across the board.

TSMC, the largest IC foundry in the world, founded the dedicated foundry business twelve years ago. Since its founding, the Company has established long-standing partnership with its customers around the globe. Mr. Huang pointed out that TSMC's recent price adjustments target a narrow range of company products that do not fall within long-term pricing strategies. The ranges of upward adjustments vary on a case-by-case basis. For the large majority of customers, TSMC adheres to guidelines set under long-term partnerships. Mr Huang stated firmly, "Reports in a local financial publication claiming that TSMC will launch an 'across the board price increases' for all of its old and new customers, with the ranges varying from 15% to 25% are untrue."

TSMC, the largest IC foundry in the world, pioneered the dedicated foundry business beginning twelve years ago and has established long-standing partnerships with customers around the globe.