TSMC Recovering Progress Ahead of Schedule Wafer Moves over 90 Percent

Hsin-Chu, Taiwan, September 30, 1999- Taiwan Semiconductor Manufacturing Company Ltd. ("TSMC" or "the Company" ) (TAIEX: 2330, NYSE: TSM) today announced its latest recovering progress at 6:30 p.m. At press time, 95 percent of the Company's wafer process equipment has already been released for production. Meanwhile, TSMC's wafer moves have reached more than 90 percent.

TSMC spokesman, YC Huang said, "Today is the 10th day after the earthquake. We not only beat the goal of 80 percent wafer moves by end of this month, but also make significant progress to reach over 90 percent. Such a quick recovery could not have been achieved without the stable power supply and the hard work of our employees."

Mr. YC Huang continued, " The earthquake and power outage resulted in some scrapped wafers. It is expected that in the short term TSMC's wafer output will still be lower than usual, although our wafer moves have already reached more than 90 percent."