TSMC Chairman Morris Chang Receives FSA's First-Ever Exemplary Leadership AwardPrize to be Renamed Morris Chang Award for Exemplary Leadership to Honor “Father of the Foundry Business“

December 6, 1999, Hsin-chu, Taiwan -Dr. Morris Chang, chairman and founder of Taiwan Semiconductor Manufacturing Company (NYSE: TSM), has been honored by the Fabless Semiconductor Association (FSA) with its first-ever Exemplary Leadership award. The award is given to recognize an individual's outstanding contributions to the fabless semiconductor industry sector. According to the FSA, "the recipient's vision and global leadership must have transformed the entire semiconductor industry and its future."

Dr. Chang, often credited as being the "father of the foundry business," created the pure-play foundry business model and founded the first company to follow that model. That company, TSMC, is now the world's largest pure-play foundry and a recognized semiconductor technology leader. Today, TSMC produces nearly 2 million 8-inch-equivalent wafers per year for customers in the fabless semiconductor, IDM and system markets.

According to the FSA, the Exemplary Leadership Award will be permanently named "The Dr. Morris Chang Award for Exemplary Leadership."

"I am deeply honored to receive this first-ever Exemplary Leadership award," said Dr. Chang. "This award is reflective of the spirit of cooperation that has developed between the foundry industry and its fabless semiconductor customers. This partnership has developed, in recent years, to a closeness that I have never seen before in the industry. However, we still have a long way to go. In the next few years, foundries and fabless companies will need to work even closer to truly realize the fantastic opportunity that lies before us."

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology, library and IP options and other leading-edge foundry services. TSMC operates five eight-inch wafer fabs (Fab 3, 4, 5, TASMC and WaferTech), and two six-inch wafer fabs (Fabs 1 and 2). In addition, the company is ramping Fab 6, located in Tainan Taiwan, for production and has begun construction of a $1.2 billion joint venture fab with Philips Semiconductor, which is scheduled to open in Singapore in 2000. TSMC will break ground for a new 12-inch wafer fabrication facility in the first quarter of 2000 in Hsin-Chu and for fab 7 in Tainan, which will be the companies sixth eight-inch fab. In year 2000, TSMC will have the capacity for nearly 3 million 8-inch equivalent wafers. Fabrication processes offered by TSMC include CMOS logic, mixed-mode, volatile and non-volatile memory, and BiCMOS. TSMC's corporate headquarters are in Hsin-Chu, Taiwan.