TSMC Board of Directors Proposes NT$ 4.0 Stock Dividend

Science-Based Industrial Park, Hsinchu, Taiwan, March 6, 2001 --Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today held a meeting of the Board of Directors and Supervisors, at which the Board adopted a proposal recommending distribution of a dividend of NT$ 4.0 per common share. The proposal will be discussed and voted on at the regular annual shareholders' meeting scheduled for May 15, 2001.