TSMC Shareholders’ Special Meeting Approved the Revision of the Provision of the Articles of Incorporation

Science-Based Industrial Park, Hsinchu, Taiwan, September 5, 2000 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM) today held the shareholders’ special meeting. The completion of the mergers of TASMC and WSMC into TSMC on June 30, 2000 was reported at the meeting. Meanwhile, the revision of the provision of the Articles of Incorporation was approved by the shareholders.

Ms. K.C. Chen, TSMC Spokesperson and Senior Vice President, stated that the provision of the Articles of Incorporation was revised for the purpose of issuing new Preferred A Shares. Holders of Preferred A Shares of TSMC shall be entitled to the distribution of cash dividend at 3.5% of the actual issuing price per annum. Distribution of the cash dividend shall be made once each year. Holders of Preferred A Shares shall not be entitled to receive cash dividend or stock dividend from distribution of profits or capital reserves. Preferred A Shares shall have a tenor of two and half years and cannot be converted into common shares of TSMC.