TSMC Appoints Dr. F. C. Tseng Deputy Chief Executive Officer; Dr. Rick Tsai Named President & Chief Operating Officer

Science-Based Industrial Park, Hsin-Chu, Taiwan, August 7, 2001 — Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today announced that its Board of Directors appointed Dr. F. C. Tseng to Deputy Chief Executive Officer and Dr. Rick Tsai to TSMC President and Chief Operating Officer. Both men will report directly to Dr. Morris Chang, TSMC Chairman and Chief Executive Officer.

Dr. Tseng formerly held the position of President and Chief Operating Officer, while Dr. Tsai formerly held the position of Executive Vice President of Worldwide Marketing and Sales.

According to Dr. Chang, “As president of TSMC, Dr. F. C. Tseng has become the most important executive appointment since TSMC’s establishment. Through this reassignment, Dr. Tseng is expected to take still greater responsibility in planning and managing the Company’s long-term strategies. To leverage TSMC’s leadership position in technology, service and competitiveness, Dr. Tseng will focus on reinforcing the Company’s R&D organization, design service group, and information technology resources. We believe Dr. Tseng will continue to contribute enormously to TSMC’s expansion within the global semiconductor industry.”

“Dr. Rick Tsai, our newly appointed President and COO, will be responsible for TSMC’s marketing, sales and operations groups, quality and reliability, human resources, as well as material management and risk management of the company,” continued Dr. Chang. “With his outstanding performance and years of experience in managing marketing, sales and operations organizations, Dr. Tsai is expected to lead TSMC down the path to providing our customers with the highest quality semiconductor manufacturing services available anywhere.”

Ms. K. C. Chen, TSMC spokesperson, stated that a number of additional management changes have taken effect coincident with this reorganization. Senior Vice President and General Counsel Ms. K. C. Chen, Senior Vice President and Chief Financial Officer Mr. Harvey Chang, and Vice President and Special Assistant to Chairman Mr. Y.C. Huang will continue to report directly to Dr. Morris Chang.

Senior Vice President and Chief Information Officer Dr. Quincy Lin, Senior Vice President of Research & Development Dr. Shang-Yi Chiang, Vice President of Design Service Dr. Ping Yang, and Chief Technology Officer Dr. Chenming Hu will report directly to Dr. F. C. Tseng.

Vice President of South Site Dr. C. C. Wei, Vice President of Fab 8 & Fab 12 Dr. Mark Liu, Vice President of North Site Mr. M. C. Tzeng, Senior Vice President of Worldwide Marketing and Sales Dr. Kenneth Kin, Vice President of Quality & Reliability Dr. John Yue, Vice President of Human Resources Mr. Swee-Huat Lee, and Vice President of Material Management and Risk Management Mr. J. B. Chen will report directly to Dr. Rick Tsai.

TSMC has provided the industry’s leading process technology, library and IP options and other leading-edge foundry services since February, 1987. With the leadership of the management team and the efforts of all TSMC employees, customers and partners, TSMC has become the world’s largest dedicated IC foundry. Nevertheless, TSMC Chairman and Chief Executive Officer Dr. Morris Chang continues to leverage the resources and expertise of TSMC’s management team for the betterment of the company. Through this reorganization, TSMC’s executives have been challenged to lead areas where they have demonstrated exceptional expertise and skill. In addition, several newly-hired executives have been added to TSMC’s management team, further bolstering its skills. According to Dr. Chang, the new management team will lead TSMC to a better future.