Mr. S.H. Lee Appointed Vice President of TSMC

August 4, 1998, Hsin-chu, Taiwan -- Taiwan Semiconductor Manufacturing Company (TSMC or the "Company") (NYSE: TSM) announced today that Mr. Swee-Huat Lee has been appointed TSMC Vice-president in charge of human resources. Mr. Lee will report to Dr. Quincy Lin, senior Vice-president in charge of corporate development.

Commenting on Mr. Lee's appointment, TSMC chairman Dr. Morris Chang affirmed, "TSMC has always been dedicated to recruiting people who share our business philosophy, the most prominent specialists in the semiconductor industry, and just as important, top-tier professionals in the management field." Dr. Chang also declared that Mr. Lee's multinational management expertise, gained during 20 years of work in many countries, industries and business functions, will make the management team at TSMC even stronger.

Prior to his appointment as TSMC's Vice-president in charge of human resources, Mr. Lee worked with Lucent Technologies as the Vice-president of Network Systems for the Asia-Pacific Region. Other positions Mr. Lee has held include: General Manager for Greater China, Polarold Far East Ltd.; Country Manager of Medical Systems for China, General Electirc Asia Ltd.; Regional Sales Manager for ASEAN & Hong Kong, Du Pont Far East Ltd.

In 1997, Lucent Technologies selected and sponsored Mr. Lee to enroll in the Sloan Fellowship program at Stanford University. He received his MS degree in Management from Stanford University in 1998.