TSMC Board of Directors Approves Subscription of New Shares to be Issued by Vanguard International Semiconductor Corporation

Science-Based Industrial Park, Hsin-Chu, Taiwan, November 5, 2002 - Taiwan Semiconductor Manufacturing Company Ltd. (“ TSMC” or “ the Company”) (TAIEX: 2330, NYSE: TSM) today held a meeting of the Board of Directors, at which the directors approved a subscription of new shares to be issued by Vanguard International Semiconductor Corporation (“VIS”).

TSMC Spokesperson Mr. Harvey Chang noted that the Board of Directors approved the subscription of 121,337,206 new shares to be issued in 2002 by VIS, a TSMC affiliate, at a price not exceeding NT$10 per share. In addition, the Board of Directors approved an investment in Global Unichip Corporation to further strengthen TSMC’s portfolio of design services in support of system-on-chip (SoC) design, in order to increase both TSMC and its customers’ competitiveness.