TSMC Recognizes its Suppliers at 2005 SCM Forum

Hsinchu, Taiwan, R.O.C. – September 15, 2005 - Taiwan Semiconductor Manufacturing Company (TSE: 2330, NYSE: TSM) today held its 2005 Supply Chain Management Forum (SCM Forum) at the Ambassador Hotel in Hsinchu, including leading suppliers from around the globe to showcase achievements realized through the organization’s successful collaboration model, and to present awards recognizing outstanding service and contributions by its suppliers. The SCM Forum is yet another example of the company’s close and intensive two-way communication, based on mutual trust and partnership, that enables all partners to further strengthen the competitiveness of this integrated supply chain.

“As the world’s largest dedicated foundry, TSMC leads the foundry segment, and constantly challenges itself to achieve new breakthroughs. Our continual advanced technology development, coupled with a need for more cost-effective capacity expansion, requires even closer collaboration between TSMC and its suppliers,” said Dr. Stephen T. Tso, Senior VP & CIO of TSMC. “As an example, to accelerate the ramp of new process technologies, TSMC engages early development partners and works closely with material and equipment suppliers to define process specifications. The company also looks at new ways to tailor equipment to further increase TSMC’s manufacturing capability. These partnerships help bring cost down, improve our ability to handle the increasing volatility of demand, and in turn, help strengthen TSMC’s leadership.”

More than 350 representatives from global Equipment, Raw Material, Facility, IT, Logistic and Environment suppliers joined in this year’s SCM Forum. Among the highlights were three TSMC awards for “Best Service Company”, “Best Product Supplier”, and “Best Material Supplier,” all recognizing the winners’ outstanding services and contributions during the past year. It is hoped that the 2005 SCM Forum will further improve the continued collaboration and strengthen the win-win partnerships of TSMC and its key suppliers.