TSMC Anticipates 80 Percent of Normal Production Moves by Thursday

San Jose, CA September 27, 1999- Taiwan Semiconductor Manufacturing Company (NYSE: TSM) said at 11:00 a.m. PDT, that the company anticipates 80 percent of normal production moves for all of its facilities by Thursday Taiwan time.

With TSMC operating at 100 percent of its normal power allocation and unaffected by Sunday morning's magnitude 6.7 aftershock, wafer shipments have been increasing substantially. Key vendor teams remain on site and are assisting TSMC personnel with equipment check-out and repair.

"We have made significant new shipments as a result of today's production moves and expect continuously increasing shipments from this point on," said Ron Norris, senior vice president of worldwide marketing and sales for TSMC.

In addition, TSMC's mask shop and test areas are operating at 100 percent of their capability, and most of the masks broken in the original quake have been replaced.

On another front, TSMC is correcting a weekend press report, quoting TSMC president F.C. Tseng. In this report, which was subsequently re-published elsewhere, Dr. Tseng was quoted as saying the company would experience a much more significant and longer term impact to our operations and customer support. These comments were made in the context of a worst case scenario should TSMC not get timely support required to operate at full power. However, this scenario became moot when Taiwan Power restored 100 percent normal power allocation to all of Hsin-Chu Science-Based Park.