TSMC Monthly Sales Report-June 2003

Hsinchu, Taiwan, July 7, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (“TSMC” or “the Company”) (TAIEX: 2330, NYSE: TSM), today announced that net sales for June 2003 totaled NT$17,846 million, representing a 6.2 percent increase over May 2003. On a year-over-year basis, June 2003 net sales increased 14.3 percent. Revenues for January through June 2003 totaled NT$89,247 million, an increase of 11.6 percent over the same 2002 period.

Mr. Harvey Chang, TSMC spokesperson and senior vice president, noted that month-over-month customer demand grew in June when compared to May 2003. The Company’s June 2003 sales revenues increased as a result of increased wafer shipment and a better product mix. In addition, TSMC’s net sales for the second quarter of 2003 totaled NT$49,922 million, approximately a 27 percent increase over the first quarter of 2003. On a sequential basis, TSMC’s fab utilization rate for the second quarter of 2003 grew to 86 percent from 67 percent in the first quarter.

Sales Report: (Unit: NT$ million)

Net Sales

2003(1)

2002

Growth

June

17,846

15,615

14.3%

January through June

89,247

79,972

11.6%

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