TSMC Chairman Dr. Morris Chang Clarifies Next Magazine Report

Hsin-Chu, Taiwan, R.O.C., February 18, 2009 – TSMC Chairman Dr. Morris Chang would like to clarify a report in issue 404 of the Taiwan edition of Next Magazine regarding an alleged personal donation of cash to Wu Shu-Jen, wife of former R.O.C. President Chen Shui-Bian.

According to Next Magazine, Wu Shu-Jen gave an affidavit to government investigators on February 3 detailing the sources of a large sum of cash found in a safe in Cathay United Bank. Next Magazine said Wu’s affidavit claimed that the cash was donations from some 20 business leaders, including NT$20 million from Dr. Morris Chang.

Regarding the above report, Dr. Morris Chang said: “There is no such thing, and I cannot accept this insult to my integrity. Neither I nor TSMC have any reason to give money to Wu Shu-Jen or former President Chen Shui-bian.”

In addition, TSMC Spokesperson Ms. Lora Ho pointed out that TSMC made legitimate political donations to the Kuomintang (KMT) and the Democratic Progressive Party (DPP) between 2000 and 2004 to support the development of democracy in Taiwan. TSMC donated a total of NT$203 million to the KMT and a total of NT$120 million to the DPP, paid by check. TSMC obtained official receipts for these transactions and they were appropriately booked in TSMC’s accounts.