TSMC Board of Directors Propose NT$2.3 Stock Dividend

Science-Based Industrial Park, Hsin-Chu, Taiwan, March 3, 1999 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the "Company") (NYSE: TSM) yesterday held a meeting of the Board of Directors and Supervisors. At the meeting the board adopted a proposal recommending the distribution of a dividend of NT$2.3 per Common Share. The proposal recommends that such dividend be paid in the form of Common Shares which would result in the distribution of 2.3 Common Shares for each 10 Common Shares owned by each shareholder. The proposal has been slated for discussion and approval at the regular annual shareholders' meeting scheduled to be held on May 11, 1999.