TSMC And Development Fund Jointly Nominate Candidates for Vanguard International Semiconductor Board Election

Hsinchu, Taiwan, R.O.C. -- May 5, 2006 – TSMC announced today the Company and the Development Fund of the Executive Yuan have jointly nominated a slate of candidates for Vanguard International Semiconductor Corporation’s Board of Directors and Supervisors (see table below), and hope the nominated candidates will win majority support from shareholders at Vanguard’s Annual General Meeting on May 11.

The Board of Directors sets a corporation’s development goals, supervises the management team, and ensures shareholders’ rights and interests, and a solid Board of Directors is the cornerstone of good corporate governance. TSMC and the Development Fund are Vanguard’s two largest shareholders, with TSMC holding a 27.2 percent share and the Development Fund holding 26.9 percent for a total of 54.1 percent. TSMC and the Development Fund have agreed on the Development Fund’s nomination of former Minister of Finance Chuan Lin as Chairman of Vanguard’s Board of Directors, while TSMC will seek an appropriate external candidate for the position of Vanguard President.

The Development Fund nominated four Directors to the Board, including the Chairman, two representatives and one unaffiliated Director. TMSC has nominated two representatives and one unaffiliated Director. In addition, TSMC and the Development Fund have each nominated one Supervisor.

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TSMC and the Development Fund of the Executive Yuan nominated candidates for Vanguard International Semiconductor’s Board of Directors and Supervisors Election.

Title

Name

Education and Experience

Note

Chairman

Chuan Lin

PhD, University of Illinois
Former Professor of Finance, National Chengchi University
Former Minister of Finance

Recommended by Development Fund

Director

Ying-jay Yang

PhD, Electronic Engineering,North Carolina State University
Professor of Electronic Engineering, National Taiwan University

Development Fund Representative

Director

Mei-Ling Chen

PhD, Law, National Chengchi University
Director, Committee of Legal Affairs, Executive Yuan
Director, Vanguard International Semiconductor Corp.

Development Fund Representative

Director

Tze-Kaing Yang

PhD, Business Administration, National Chengchi University
Executive Vice President, China Development Financial Holding Corp.
Deputy Minister, Ministry of Finance, Executive Yuan

Recommended by Development Fund

Director

Ching-I Eli Wang

M.S.A, University of Illinois
Former Chairman and Managing Partner, T.N. Soong & Co., CPAs
Managing Partner, Eli C. Wang & Co., CPAs

TSMC Representative

Director

Y.G. Qintin Wu

Chairman, USI Corporation
Chairman, Vanguard International Semiconductor Corp.

TSMC Representative

Director

Lu-Pao Hsu

MS, Physics, National Cheng Kung University
Former Executive Vice President, Philips Taiwan

Recommended by TSMC

Supervisor

Lai-Shou Su

MBA, University of North Texas
Director, Bank of Overseas Chinese

Development Fund Representative

Supervisor

Jen-Chau Wendell Huang

MBA, Cornell University
Director, Finance Division, TSMC

TSMC Representative