TSMC to Start Partial Operation with Increased Power Supply

San Jose, CA September 24, 1999- Taiwan Semiconductor Manufacturing Company (NYSE: TSM) said at 11:00 a.m. PDT, that the company is now running at 55 to 60 percent of full power and expects to receive up to 85 percent external power sometime Saturday, Taiwan time. When combined with the company's backup systems, this provides TSMC's facilities with essentially "full power." As a result, the company plans to call in a full work force in each fab. It is expected that the company's production lines will gradually resume next week.

As a result of the increased power allocation, TSMC reports that all air conditioning and exhaust systems are up, and DI water plants are operating at a higher level than yesterday. Gas line checks were fully underway at press time. Equipment inspection and repair is also well under way.

"We have equipment vendor support people arriving now and over the weekend to supplement our efforts and help deal with any complex problems we may run into as we bring up the equipment," said Ron Norris, senior vice president of worldwide marketing and sales for TSMC. "Our operations people report that so far they have identified 'no major showstoppers'."

As reported earlier, damage to TSMC's mask shop and test areas is minimal, so operations in these areas may fully resume within one or two days. In addition, customs offices and freight forwarders are also up and running, and TSMC has already shipped some material that was at the quality control stage prior to the earthquake, to its customers.