TSMC Nominates Dr. C.S. Hsu as Vanguard President

Hsinchu, Taiwan, R.O.C. -- May 10, 2006 – TSMC announced today the Company has obtained the consent of Dr. C.S. Hsu to serve as President of Vanguard International Semiconductor Corporation. The nomination follows TSMC and the Development Fund of the Executive Yuan’s May 5 announcement of a slate of jointly nominated candidates for Vanguard’s Board of Directors and Supervisors. TSMC and the Development Fund, Vanguard’s largest shareholders, agreed the Development Fund would nominate the Chairman of Vanguard’s Board of Directors while TSMC would seek an appropriate external candidate for the position of Vanguard President. TSMC’s nomination of Dr. Hsu will be submitted for approval to the new Board elected at Vanguard’s May 11 Annual General Meeting.

Dr. Hsu is a semiconductor industry veteran, with rich experiences including service as a R&D Director of at Samsung Electronics, Vice President of Hualon Microelectronics, and Senior Vice President of Winbond Electronics. He is also vary familiar with Vanguard, serving as a Vice President from 1997 to 2000 managing areas including Quality and Reliability, Back-End Assembly and Testing, and Product Development.

Dr. Hsu also worked for three years as TSMC’s Vice President of Worldwide Marketing and Sales Special Projects before retiring in 2003. He has recently taken some personal time to act as a consultant to the President of TSMC North America on special projects. Dr. Hsu graduated from Tung Hai University in 1964 and earned a Ph.D. in Physics from Columbia University in 1974.

“Vanguard is one of TSMC’s major investments,” said TSMC Spokesperson Ms. Lora Ho. “We have invited Dr. Hsu to come out of retirement to draw on his wealth of knowledge and experiences in the semiconductor industry. We hope that he will lead Vanguard to continued growth and also hope that his management team will work closely with the new Board of Directors and strive for the benefit of all shareholders.”