Monthly Sales Report - December 2000

Hsinch, Taiwan, January 9, 2001–Taiwan Semiconductor Manufacturing Company Ltd. (“ TSMC” or “ the Company” ) (TAIEX: 2330, NYSE: TSM), today announced that its net sales for December 2000 reached a new high of NT$18,303 million, representing a 0.7% increase over November 2000 sales. The Company’s sales revenue for year 2000 was NT$166,344 million, representing an increase of 127.5% over year 1999 and exceeding the estimation of NT$164,869 million in the Company’s year 2000 financial forecast.

Ms. K. C. Chen, TSMC spokesperson, stated that in December, “the overheated situation in the global semiconductor market returned to a more normal pattern. However, wafer demand for TSMC’s leading-edge, 0.25-micron-and-below processes continued to increase as a percentage of overall sales.” The company’s record net sales of NT$18,303 million for December 2000 represents an increase of 112.3% over December 1999 sales.

In 2000, TSMC’s monthly sales set record highs each month, topping sales figures for the same periods in 1999. In addition, the Company announced several breakthroughs in process technology in December 2000, including the delivery of the foundry industry’s first 300mm production wafers and the first 0.13-micron customer product wafers.