December 10 Earthquake Not Expected to Impact TSMC December Wafer Output

Hsinchu, Taiwan, December 11, 2003 – Taiwan Semiconductor Manufacturing Company Ltd. (“TSMC” or “the Company”) (NYSE: TSM) indicated today that an earthquake that occurred near Taitung on the afternoon of December 10 had no impact on TSMC fabs in the Hsin-Chu Science Park and only temporarily halted operations at Fab 6 in Tainan Science Park. Fab 6 operations resumed normal production after a thorough equipment check. The Company notes that overall wafer output in December will not be impacted by the earthquake.

Separately, TSMC reaffirmed that the Company’s fourth quarter 2003 guidance may be slightly better than advised in the Company’s October 28, 2003 investor conference call. There is a good possibility that TSMC’s fourth quarter sales revenue will mark an historical record high.