TSMC Board of Directors Approves Semi-annual Financial Statements for First Half of 1999

HSIN-CHU, Taiwan, August 10, 1999-The Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the "Company") (TAIEX: 2330, NYSE: TSM) Board of Directors today approved the semi-annual financial statements for the first half of 1999 and the increase of the Company's 1999 normal capital expenditure.

Mr. YC Huang, Spokesman for TSMC, outlined several important decisions made by the Board of Directors as follows:

The Board of Directors approved the semi-annual financial statements for the first half of 1999 prepared by the auditors. Net sales for the first half of 1999 were NT$29,733 million; net income was NT$10,112 million, and earnings per share were NT$1.34. The Board of Directors approved the Company to increase normal capital expenditure budget by NT$901 million to NT$15,979 million. The Board of Directors approved the Company to increase investment in WaferTech, LLC, in an amount not exceeding US$90 million through the Company's 100% owned subsidiaries. The Board of Directors approved the subscription of new shares to be issued by Acer Semiconductor Manufacturing Incorporated in 1999, in an amount not exceeding NT$3,960 million.

Mr. Huang pointed out that in addition to the increase of normal capital budget approved by the Board of Directors, the Company also plans to expedite the expansion of its Fab V facility to meet customers' growing needs. TSMC's total capital expenditure for 1999 will therefore be NT$40,930 million, or US$1,240 million.