TSMC Issued Its New ADS at the Price of US$ 35.75

Science-Based Industrial Park, Hsinchu, Taiwan, June 2, 2000 - On the evening of June 1, 2000 New York time, Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (“TSMC”) successfully issued 23,000,000 American Depositary Shares (ADSs) on the New York Stock Exchange. The offering price per ADS was US$ 35.75.

Ms. K.C. Chen, TSMC Spokesperson pointed out that TSMC is expected to raise US$ 822,250,000 through this offering of 23 million ADSs (or 115,000,000 TSMC common shares). Each TSMC ADR represents five common shares of TSMC.

27,500,000 TSMC common shares owned by certain shareholders, which TSMC sponsored to sell in the form of ADSs, have been offered together with the new ADSs issued by TSMC today. The underwriters may also exercise over-allotment options of 21,375,000 shares within 30 days.

Goldman Sachs (Asia) L.L.C., the global coordinator responsible for TMSC’s ADS offering, pointed out that the offering price of US$ 35.75 was 43% premium to the closing price of TSMC’s shares on the Taiwan Stock Exchange on June 1, 2000, which is the highest premium for Taiwanese marketed equity offerings. This also represents 2.62% premium to TMSC’s previous five-day average price on the New York Stock Exchange. The total TSMC ADS offering size is currently US$ 1,018,875,000. If the over-allotment option is exercised in full, the total offering size of TSMC ADS will be US$ 1,171,706,250.

Ms. Chen stated that TSMC’s ADS issuance is so far the largest-scale global fundraising program by a Taiwan company, in recognition by global investors of TSMC’s performance and future growth. The funds raised in the international capital market will be invested in capacity expansion and technical advancement, thus ensuring TSMC’s leading position in IC foundry market.