TSMC Signs Contract with Atmel to Purchase Eight-inch Wafer Fabrication Equipment

Hsinchu, Taiwan, R.O.C. – October 9, 2007 – TSMC (TSE: 2330, NYSE: TSM) today signed a contract with Atmel Corporation (Nasdaq: ATML) to purchase Atmel’s eight-inch wafer fabrication equipment from its fab in North Tyneside, United Kingdom. The deal totalled US$ 82 million. Both companies agreed not to disclose other terms of this contract.

“TSMC is committed to providing our customers with the most competitive foundry services, both in advanced and mature technologies. This transaction is part of our eight-inch wafer strategy, and part of the wafer fabrication equipment may be transferred to TSMC (Shanghai), our fully owned subsidiary in Mainland China, for capacity expansion next year,” noted Dr. C.C. Wei, SVP of Operations I at TSMC.