TSMC's Full-Scale 300mm Fab Produces High-Yield Customer WafersFab 12 successfully transfers 300mm experience from Fab 6 pilot line to speed up volume production

Hsin-Chu, Taiwan, August 22, 2001 -- Taiwan Semiconductor Manufacturing Company Ltd. ("TSMC" or "the Company") (NYSE: TSM, TAIEX: 2330) has delivered fully functional 300 wafers from its Fab 12, TSMC’s first full-scale 300mm facility. Located in Taiwan's Hsinchu Science-based Industrial Park, Fab 12 is producing Etron Technology's 8Mb SRAM as well as Logic and SRAM test chips for TSMC's evaluation with its leading 0.15um technology. Both Etron's products and TSMC's test chips are the first lots of their own and have demonstrated high yields comparable to those in TSMC's 200mm wafer manufacturing facilities.

“No doubt 300mm wafer manufacturing will be mainstream for the twenty-first century, " said Dr. Rick Tsai, president of TSMC. "Compared with 200mm manufacturing technology, 300mm wafers are expected to deliver significant advantages in cost, yield, quality, and productivity. With the successful risk production of Fab 12, TSMC has clearly demonstrated once again class-of-the-world manufacturing capability that our customers constantly expect of a leader.”

“The successful results demonstrate TSMC's capability to produce world-class 300mm wafers in high volumes. This excellent performance was achieved due to the dedicated efforts by all Fab 12 colleagues and the solid foundation established with TSMC's 300mm pilot line at Fab 6,” said Dr. Mark Liu, vice president of TSMC Fab 8 and Fab 12.

Having passed the milestone of successful risk production using 0.15um technology, TSMC are now focused on volume production with TSMC's 0.13um, all-copper process in the fourth quarter of 2001. Fab 12 is also a site for the development of TSMC's 0.10um technology and will be responsible for the development of TSMC's future technologies at all nodes thereafter.