Monthly Sales Report - October 1998

Hsin-Chu, Taiwan, Nov. 9, 1998- Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), ("TSMC" or "the Company") today announced that its net sales for October, 1998 were NT$4,214 million; revenue from January to October, 1998 was NT$42,814 million.

Net sales in October, 1998 deceased 11% from NT$4,733 million in the same period a year ago mainly as a result of a decrease in unit sales.

On a sequential basis, net sales decreased 4.9% from NT$4,432 million in September, 1998 primarily due to a decrease in unit sales. For the first ten months of 1998, net sales increased 28.4% to NT$42,814 million from NT$33,338 million in the same period in 1997.