TSMC Board Approves Conversion of Philips’ TSMC Common Shares to ADSs

Hsinchu, Taiwan, R.O.C., April 2, 2007 – TSMC’s Board of Directors held a special board meeting today and approved the sponsorship of conversion of up to 1.2 billion TSMC common shares to American Depository Shares (ADSs) on behalf of Royal Philips Electronics.

Philips is considering an offering of up to 1.2 billion TSMC common shares, which when converted equate to 240 million ADSs. One TSMC ADS represents five TSMC common shares.