Monthly Sales Report - July 1999

Hsin-Chu, Taiwan, August 9, 1999- Taiwan Semiconductor Manufacturing Company Ltd. ("TSMC" or "the Company" ) (TAIEX: 2330, NYSE: TSM) today announced that its net sales for July 1999 were NT$6,586 million, a new record breaking the prior highest.

Mr. YC Huang, TSMC Spokesman, pointed out that as a result of continued growth in the IC market, the Company's capacity was fully utilized again in July 1999. Sales for July 1999 registered a 14.9% increase over June 1999 and a substantial increase of 117.3% on a year-over-year basis. The Company's sales revenues from January through July 1999 totaled NT$36,319 million, representing a 19.6% increase over the corresponding period of 1998.