TSMC Set June 20 Record Date for Common Share Dividend

Hsinchu, Taiwan, May 31, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today announced the Company set June 20, 2004 as the record date for its common shares entitled to participate in the stock and cash dividends. The ex-dividend date for TSMC common shares will be June 14, 2004.

On May 11, 2004, TSMC shareholders approved the proposal for distribution of common share dividends, including a stock dividend of 140.8668 shares for each 1,000 common shares and a cash dividend of NT$0.6037 per common share.

As required by Article 165 of the Company Law, the shareholders' register shall be closed for five days prior to the record date, i.e., from June 16 through June 20, 2004, for registration transfer.

To be entitled for the above-mentioned stock and cash dividends, any person who acquires TSMC's common shares and is not already registered as a holder must apply for the shareholders' registration with the Agency Department of China Trust Commercial Bank before 5:00 p.m., June 15, 2004, in person or by mail, with a postmark of the said date. (Agency Department of China Trust Commercial Bank: Add: 5th Floor, No. 83, Sec. 1, Chungking S. Rd., Taipei, ROC; Tel: 886-2-2361-3033)

The record date for TSMC American Depositary Shares (ADSs) entitled to participate in this stock and cash dividend will be June 16, 2004 and the ADSs ex-dividend date will be June 14, 2004. Holders of ADSs are encouraged to check with their securities brokers for receipt of the stock dividend in their own accounts. Any questions regarding this upcoming dividend may be directed to Ms. Emi Mak at CitiBank, N.A. (Tel: 1-212-657-2770 / email: emi.p.mak@citigroup.com)