TSMC Fab 12 Achieves AAA, ISO 14001 & OHSAS 18001 Certifications

HSIN-CHU, Taiwan—July 30, 2002—Taiwan Semiconductor Manufacturing Company today (TSMC or the "Company") (TAIEX: 2330, NYSE: TSM) announced that the Company's Fab 12 Phase 1 set a new foundry industry record for certification in risk, environment and safety management, by achieving the AAA Damage Prevention and Fire Safety Certificate, the ISO-14001 certificate and the OHSAS-18001 certificate, all in record time. TSMC Fab 12 Phase 1 is the first 300mm production plant in the world to achieve this rigorous level of manufacturing certification.

The AAA certification system is the risk assessment certification system developed by ACE Insurance for its global insurance customers and is considered one of the most trustworthy risk certification systems worldwide. TSMC Fab 12 Phase 1 is the only 300mm semiconductor fab in the world to have achieved the AAA certificate in February 2002, only 10 months after the initial installation of manufacturing equipment. This is considered the shortest time ever to achieve the AAA certification for risk management.

In addition, Fab 12 Phase 1 also obtained ISO 14001 and OHSAS 18001 certifications in June, with 100 percent of audited items in conformity. The certifications were achieved in just 14 months.

TSMC President Dr. Rick Tsai indicated that, "Building consistent quality into all aspects of the company is a core TSMC business philosophy. TSMC is committed to achieving and maintaining complete quality in the areas of risk management, environmental, health and occupational safety as fundamental aspects of our daily operations. Our objective is to ensure total satisfaction as a competitive advantage."

TSMC Fab 12 Phase 1, located in the Hsin-Chu Science-Based Industrial Park, is the Company's first full-scale 300mm manufacturing facility. The groundbreaking of Fab 12 Phase 1 took place in December 1999, followed by the equipment installation in April of 2001. Having completed successful risk production using 0.15um and 0.13um technologies in August and September 2001, respectively, Fab 12 Phase 1 reached volume production on a 0.13um, all-layer copper process in December 2001. In addition, Fab 12 Phase 1 is the center of future technology development at TSMC and is expected to reach its full capacity of 25,000 300mm wafers per month by the end of 2003. Also, construction of Fab 12 Phase 2 began in June 2002.