Timetable of Stock Dividend Distribution

The timetable for distribution of TSMC stock dividend of 0.45 share per Common Share is set as follows:

Local (Taiwan) payable date August 11, 1998
US payable date August 25, 1998
US ex-dividend date August 26, 1998

TSMC ADR investors who receive 45% stock dividend evidenced by American Depositary Shares (ADSs) are subject to ROC withholding tax, currently at the rate of 20% on the par value of Common Shares.