Hsinchu, Taiwan, February 18, 2000 - Taiwan Semiconductor Manufacturing Company Ltd.(TSMC or the "Company") (NYSE: TSM) today held a meeting of the Board of Directors and Supervisors. At the meeting the board adopted a proposal recommending the distribution of a stock dividend of NT$2.8 per Common Share. The proposal has been slated for discussion and approval at the regular annual shareholders' meeting scheduled to be held on April 14, 2000.
TSMC spokesperson Mr. Y.C. Huang pointed out the major conclusion of this Board meeting are as followed:
Approved 1999 financial statements audited by T. N. Soong & Co. Net sales for 1999 were NT$ 73.13 billion, and net income was NT$ 24.56 billion, with Earnings Per Share of NT$3.24 (based on weighted-average number of shares outstanding 7,572,598 thousand in 1999).
The proposal recommends that the NT$ 2.8 dividend to be paid in the form of common shares, by distributing 0.28 common shares in respect of each common stock outstanding. Of the dividend of NT$2.8 per share, NT$2.555 is to be paid out of retained earnings and NT$0.245 is to be paid out of capital surplus.
To approve capital expenditure in the amount of NT$ 13,860 million to set up a 12-inch wafer pilot production line in Fab 6. Fab 6 is currently expected to start equipment move-in in third quarter this year for the 12-inch pilot line, start pilot production in the fourth quarter and will reach monthly full capacity of 4,500 twelve inch wafers at the end of 2001.
To approve the issuance of up to 150 million common shares, par value of NT$10, to be sold as depository receipts ("DRs"). The proceeds of the proposed issuance are currently expected to be used for fab expansion, procurement of equipment, working capital, long term investment or funds for other long/mid term developments. 10% of the total common shares will be reserved for employees' subscription in accordance with the Company Law. It is proposed to submit to the Shareholders' Meeting for approval that all the remaining 90% of the common shares be allocated for the public offering to issue DRs.
The year 2000 regular annual shareholders' meeting is scheduled to be held at 9:00AM on April 14 (Friday) in the Auditorium of the Activity Center at Hsinchu Science-Based Industrial Park.