TSMC Shareholders Approved NT$1.00 Stock Dividend

Science-Based Industrial Park, Hsin-Chu, Taiwan, May 7, 2001 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today held a shareholders' meeting at which the shareholders approved the distribution of a stock dividend of NT$1.00 per Common Share. Each shareholder will be entitled to receive a stock dividend of 100 shares for each 1,000 shares held by such shareholder.

  1. 1. Shareholders approved financial statements for 2001. Net sales for 2001 were NT$ 125,888 million, and net income was NT$ 14,483 million, with earnings per share of NT$0.83.

  2. 2. Shareholders approved the capitalization of dividends and employee profit sharing to be distributed from fiscal year 2001 profits and capital reserves. The paid-in capital of the Company shall become NT$ 199,228,867,450 (including 186,228,867,450 common shares and 1.3 billion preferred shares).

  3. 3. Shareholders elected Professor Lester Carl Thurow of MIT and Sir Peter Leahy Bonfield, former CEO of British Telecommunications, as new directors, increasing the number of board members from the current seven to nine. The term of office of the two new-elected directors will expire on April 13, 2003, same as the existing directors' tenure.

  4. 4. Shareholders approved the revision to the Articles of Incorporation, the Rules and Procedures of Shareholders' Meeting and the Rules for Election of Directors and Supervisors. Referring to the Articles of Incorporation, major revision includes an issuance of employee stock options, the number of directors shall be seven to nine, and a reduction in the percentage of the balance as bonus to directors and supervisors from 1% to 0.3%.