TSMC R&D Team Receives 2003 Outstanding Scientific and Technological Worker Award from Executive Yuan of Republic of China

Hsinchu, Taiwan, December 22, 2003 - Taiwan Semiconductor Manufacturing Company (TSMC or the “Company”) (TSE: 2330, NYSE: TSM) said today that its research and development team received the 2003 Outstanding Scientific and Technological Worker Award from the Executive Yuan of the Republic of China. The award, which is considered the highest honor for technology development in Taiwan, recognizes TSMC’s leading 0.13-micron low-k, copper system-on-chip (SoC) technology.

The 2003 Outstanding Scientific and Technological Worker Award Steering Committee (the “Committee”) unanimously awarded the honor to TSMC, noting that the development of this advanced semiconductor process has not only made significant contribution to the national economy, but has also set a leading example of the successful implementation of Taiwan’s “Silicon Island” policy through advanced R&D.

The Committee noted that TSMC’s leading 0.13-micron low-k, copper SoC logic process technology marked one of the breakthrough milestones that the Company has become a technology leader from a technology follower in semiconductor industry. TSMC’s 0.13-micron process technology covers a wide-range of world-class SoC platform for CMOS transistor manufacturing, including industry-leading design rules, ultra-small-size SRAM (2.43-1.87um2), world’s most advanced 193 nm lithography technology, and world’s first eight-layer low-k copper interconnect (k<=2.9). Noteworthy, the introduction and volume production of TSMC’s leading low-k, copper process technology outperformed some world-renowned IDMs, thereby confirming Taiwan’s international profile in the international electronics industry.

The Committee also noted that TSMC has shipped more than 400,000 eight-inch equivalent wafers using its 0.13-micron process technology, thereby generating approximately NT$ 40 billion for the Company and for the Republic of China. It is expected that TSMC’s 0.13-micron process revenue could reach hundreds of billion NT dollars in the coming years and therefore brings a significant contribution to Taiwan’s national economy. In addition, the success of the technology has also created a solid foundation for TSMC’s 90 nano-meter and 65 nano-meter process development, representing a meaningful milestone to extend Moore’s law.

“The successful ramp of our 0.13-micron process technology, including low-k technology, and the availability of our NexsysSM 90-nm process, are examples of realizing TSMC’s vision: “To be the most advanced, innovative and largest provider of foundry services, and in partnership with our customers, to forge a most powerful force in the semiconductor industry,” said Dr. F.C. Tseng, deputy CEO of TSMC.

“Looking forward, with the increasing competition in the global semiconductor industry, TSMC will continue to work closely with our customers for a long-term, win-win partnership,” continued Dr. Tseng.

TSMC’s award winning 0.13-micron process technology is the achievement of the Company’s R&D team, under the leadership of Dr. S.Y. Chiang, senior vice president of TSMC Research and Development. The outstanding team also includes Dr. M.S. Liang, in charge of advanced module; Dr. C.H. Yu, leading copper interconnect and low-k material integration; Dr. Burn J. Lin, pioneering 193 nm lithography process technology; Dr. Yuan-Chen Sun and Dr. K.L. Young, in charge of yield enhancement and logic process integration.

Dr. Chiang, reflecting on the development of the Company’s 0.13-micron technology, noted that “Early on, we rejected a proposal sending our R&D people to the US to work with a world-known IDM for developing 0.13-micron process technology. Instead, we made a key decision to develop our 0.13-micron technology on our own, here at our Hisnchu headquarters. This allowed us to stay ahead of the IDM to bring 0.13-micron technology to market, and it also kept our valuable R&D team rooted in Taiwan, with independent R&D capabilities and leading advanced technologies.”

To date, TSMC’s 0.13-micron process technology has been used in over 230 customer designs in a variety of applications in consumer, computer, and communication products. TSMC anticipates to ship more than 400,000 eight-inch equivalent wafers in 0.13-micron technology this year. In addition, TSMC’s 0.13-micron low-k process technology is the first in the foundry industry to pass customer product qualifications and enter volume production.

【Backgrounder: Brief Winner Profiles】

1. Dr. Shang-Yi Chiang, Ph.D., Senior VP, R&D, TSMC, Taiwan, R.O.C.

Education:

• Ph.D., Electrical Engineering, Stanford University, USA

• M.S., Electrical Engineering, Princeton University, USA

• B.S., Electrical Engineering, National Taiwan University, Taiwan, R.O.C.

Experience:

• Vice President, Research & Development, TSMC, R.O.C.

• Department Manager, Device Research and Applications, Hewlett-Packard Laboratories, Hewlett-Packard, USA

2. Dr. M.S. Liang, Ph.D., Senior Director, R&D, TSMC, Taiwan, R.O.C.

Education:

• Ph.D., Electrical Engineering, University of California, Berkeley, USA

• M.S., Electrical Engineering, National Cheng Kung University, Taiwan, R.O.C.

• B.S., Electrical Engineering, National Cheng Kung University, Taiwan, R.O.C

Experience:

• Director, Research & Development, Mosel, CA, USA

• Manager, Research & Development, AMD, CA USA

3. Dr. Burn J. Lin, Ph.D., Senior Director, R&D, TSMC, Taiwan, R.O.C.

Education:

• Ph.D., Electrical Engineering, Ohio State University, USA

• M.S., Electrical Engineering, Ohio State University, USA

• B.S., Electrical Engineering, National Taiwan University, Taiwan, R.O.C.

Experience:

• President, Linnovation Inc., USA

• Manager, IBM, USA