TSMC Shareholders Approved Stock Dividend of NT$2.3 Stock Dividend

Science-Based Industrial Park, Hsin-Chu, Taiwan, May 11, 1999 -At Taiwan Semiconductor Manufacturing Company's ("TSMC" or the "Company") (TAIEX: 2330, NYSE: TSM) shareholders' meeting held today, shareholders approved stock dividend of NT$2.3 per share.

TSMC spokesman, Mr. YC Huang, outlined several important decisions made at the shareholders' meeting as follows:

Accepted the Company's financial statements for the year 1998 prepared by the auditors. The net sales revenue for 1998 were NT$50,233 million, net income was NT$15,344 million, and earnings per share were NT$2.54. Approved that for each 1,000 shares held by a shareholder, the shareholder will be entitled to receive stock dividend of 230 shares at no charge. Approved the capitalization of stock dividends and stocks for profit sharing to be distributed from 1998 profits. Subsequent to this capital increase, the paid-in capital of the Company shall be in the total amount of NT$75,484,830,350 . Approved the revision of the provision of the Articles of Incorporation: The Company shall have seven Directors instead of ten in order to meet the operational needs of the Company.