TSMC Monthly Sales Report - July 2003

Hsinchu, Taiwan, August 7, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (“TSMC” or “the Company”) (TAIEX: 2330, NYSE: TSM) today announced that net sales for July 2003 totaled NT$17,649 million, a slight decrease of 1.1 percent from June 2003. On a year-over-year basis, July 2003 net sales increased 30.4 percent. Revenues for January through July 2003 totaled NT$106,896 million, an increase of 14.3 percent over the same period in 2002.

Mr. Harvey Chang, TSMC spokesperson and senior vice president, attributed the slight decrease in July 2003 revenues to customers’ seasonal inventory adjustments. The Company’s third quarter 2003 guidance remains as provided in its July 24, 2003 investor conference.

Sales Report: (Unit: NT$ million)

Net Sales

2003(1)

2002

Growth

July

17,649

13,536

30.4%

January through July

106,896

93,508

14.3%

(1): Year 2003 figures have not been audited.