TSMC Statements

Hsinchu, Taiwan, R.O.C. - August 23, 2005 - In order to clear up any possible public misunderstanding regarding Commercial Times’ and Economic Daily’s news reports today on TSMC’s investment in Mainland China, TSMC (TAIEX: 2330, NYSE: TSM) today makes the following statements:

1. TSMC’s investment and technology transfer in Mainland China fully abide with all regulations of the Republic of China.

2. Currently, TSMC owns two advanced technology 12-inch fabs, Fab 12 and Fab 14, in Hsinchu and Tainan Science Parks, respectively. Given that we are now expanding these two fabs, we have no plans to build any other 12-inch fabs in Mainland China.

3. TSMC’s affiliated venture capital funds (Emerging Alliance Fund and VTAF II Fund) currently have no investments in any Mainland Chinese companies. In the future, if these funds plan to make any investment in Mainland China, they will fully abide with all ROC regulations.

4. Dr. Genda Hu was formerly a vice president at TSMC. He left the company on August 1st of this year. TSMC has no relationship with Dr. Hu’s current business undertakings. Dr. Hu embarked on these new directions by his own choice.