TSMC and Its Employees Contribute NT$ 200 Million to Earthquake Victims

Hsinchu, Taiwan, September 21, 1999- Taiwan Semiconductor Manufacturing Company (TSMC or the "Company") (NYSE: TSM) extends its deepest condolences to the victims of the devastating earthquake that struck Taiwan on September 21, 1999. TSMC and its employees will contribute NT$200 million dollars to take part in the relief efforts.

TSMC spokesman, YC Huang stated that the Company decides to contribute NT$ 200 million dollars, including NT$50 million dollars from its employees' donation (20% of their September salary) and NT$150 million dollars contributed by the company itself. TSMC authorizes the Red Cross Society of the Republic of China to allocate this specified fund to alleviate the victims' massive losses caused by this disastrous earthquake.

Due to the devastating earthquake, the Company's operation in September and the fourth quarter of 1999 will be substantially affected. However, the Company considers the impact of the earthquake on its operations far less important than the losses and misfortunes of the victims to the earthquake. TSMC and its employees feel great empathy for the suffering countrymen and regard it as the Company's obligation to offer any possible help. In the meantime, the Company urges the business society to join the relief efforts for the victims.