TSMC 2000 Fourth Quarter ReportSales Exceed NT$50 Billion in One QuarterRecord-setting 2000 Results Outperform Previous Financail Forecast

Science-Based Industrial Park, Hsinchu, Taiwan, February 6, 2001 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (“TSMC” or the “Company”) announced today its audited financial results for the fourth quarter of 2000. Net sales for the fourth quarter of 2000 reached NT$53,822 million, net income totaled NT$21,473 million, and earnings per share were NT$1.84 based on 11,423.8 million weighted average outstanding shares.

For the fiscal year 2000, ended December 31, net sales were NT$166,229 million and net income was NT$65,106 million. With a total of 11,423.8 million weighted average outstanding shares, earnings per share for 2000 were NT$5.70. These financial results all outperformed TSMC’s previous public forecast for 2000.

Ms. K. C. Chen, TSMC spokesperson, stated that although the overheated situation in the global semiconductor market has returned to a more normal pattern since November 2000, the Company’s monthly capacity utilization rate exceeded 100 percent throughout the fourth quarter of 2000. The Company's fourth quarter wafer shipments reached another new record high of 1,001,000 eight-inch equivalent wafers. In addition, TSMC's sales from 0.25- and 0.18-micron wafers and beyond have continued to increase and already accounted for approximately 50% of the Company's fourth quarter 2000 sales.

TSMC's fourth quarter 2000 sales and net income both set historical highs. Compared to the third quarter of 2000, the Company's net sales and net income for the fourth quarter of 2000 grew 13.3% and 7.1%, respectively. The Company's fourth quarter 2000 sales and net income increased 127.2% and 158.4%, respectively, over the corresponding period of 1999.

In terms of the full year performance, TSMC delivered better results than its previously announced financial forecast. TSMC’s net sales for 2000 totalled NT$166,229 million, higher than the previous forecast of NT$164,869 million and representing a 127.3% growth over 1999. The Company’s net income was NT$65,106 million, better than the previous forecast of NT$64,002 million and registering a 165.1% increase over 1999. As for earnings per share , TSMC’s earnings per share for 2000 were NT$5.70, greater than the previous forecast of NT$5.61 and rose 128.9% over 1999. In addition, both TSMC’s ROE (Return on Shareholders’ Equity) and ROA (Return on total Assets) for 2000 outperformed those for 1999. TSMC’s ROE for 2000 increased to 31.5% from 24.0% for 1999 and the Company’s ROA for 2000 rose to 24.1% from 18.2% for 1999.

The Company noted that its 2000 audited financial results will need to be approved by the TSMC Board of directors.