Monthly Sales Report - September 1998

Hsin-Chu, Taiwan, Oct. 9th, 1998- Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (TSMC or "the Company") today announced that its net sales for September, 1998 were NT$4,432 million; revenue from January to September, 1998 was NT$38,600 million.

Net sales in September, 1998 increased 5.1% from NT$4,214 million in the same period a year ago mainly as a result of an increase in ASP in NT dollars due to an improved product mix and favorable foreign exchange.

On a sequential basis, net sales increased 16.6% from NT$3,801 million in August, 1998 primarily due to an increase in unit sales. For the first nine months of 1998, net sales increased 34.9% to NT$38,600 million from NT$28,605 million in the same period in 1997.