TSMC Hosts International SEMATECH's Industry Executive Forum in Taiwan

Science-Based Industrial Park, Hsin-Chu, Taiwan, August 9, 2001 — Taiwan Semiconductor Manufacturing Company Ltd. (“ TSMC” or “ the Company” ) (TAIEX: 2330, NYSE: TSM) today hosts International SEMATECH's Industry Executive Forum (IEF) in Hsinchu, Taiwan. This is the first time the IEF being held in Taiwan. As International SEMATECH chooses to hold the IEF here, it shows that Taiwan's role in the global semiconductor industry becomes more and more important.

The IEF will bring together over 50 executives from global device manufacturers and equipment supplier companies to focus on the semiconductor equipment suppliers' proposal for a collaborative interface between suppliers and device makers.

International SEMATECH is a unique endeavor of 13 semiconductor manufacturing companies from seven countries. Located in Austin, Texas, USA, the consortium strives to be the most effective, global consortium influencing semiconductor manufacturing technology. Member companies cooperate pre-competitively in key areas of semiconductor technology, sharing expenses and risk. Their common aim is to accelerate development of the advanced manufacturing technologies that will be needed to build tomorrow's most powerful semiconductors.

Dr. S Y Chiang, TSMC R&D Senior Vice President, said, “We are pleased to host International SEMATECH's IEF held for the first time here in Taiwan to discuss the opportunities of the cooperation between equipment suppliers and device makers. International SEMATECH is one of the most effective, global consortiums influencing semiconductor industry directions and member company technology. We believe that the new perspectives, ideas and approaches that the IEF brings will greatly benefit both equipment suppliers and device makers.”

"We are grateful to TSMC for hosting International SEMATECH's seventh IEF. It is indeed appropriate that we are meeting in Taiwan as Taiwan's role in the global semiconductor industry becomes more and more important," said Dr. Mark Melliar-Smith, CEO of International SEMTECH. "TSMC, as a global leading foundry, has made significant contributions to the cooperative efforts to improve semiconductor manufacturing technology. I believe that TSMC will continue to play an important role in achieving International SEMATECh's mission," Dr. Melliar-Smith added.

A tour to TSMC's Fab 12, TSMC's first dedicated and one of the world's leading 300mm manufacturing facilities, will be arranged after the forum.

History of International SEMATECH

International SEMATECH traces its history back to 1986, when the idea of launching a bold experiment in industry-government cooperation was conceived to strengthen the U.S. semiconductor industry. The consortium, called SEMATECH (SEmiconductor MAnufacturing TECHnology), was formed in 1987, when fourteen U.S.-based semiconductor manufacturers and the U.S. government came together to solve common manufacturing problems by leveraging resources and sharing risks. Austin, Texas, was chosen as the site, and SEMATECH officially began operations in 1988, focused on improving the industry infrastructure, particularly by working with domestic equipment suppliers to improve their capabilities.

By 1994, it had become clear that the U.S. semiconductor industry -- both device makers and suppliers -- had regained strength and market share; at that time, the SEMATECH Board of Directors voted to seek an end to matching federal funding after 1996, reasoning that the industry had returned to health and should no longer receive government support. SEMATECH continued to serve its membership, and the semiconductor industry at large, through advanced technology development in program areas such as lithography, front end processes, and interconnect, and through its interactions with an increa