TSMC’S AGGRESSIVE EXPANSION LEADS TO FAB RENAMINGRecent Mergers Bring Total Number of Fabs to Eleven;WSMC and TASMC to Come Under Company Identification Umbrella

HSIN-CHU, Taiwan, May 2, 2000

Driven by tremendous expansion in 1999 and throughout 2000, Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM), the world's largest dedicated semiconductor foundry, today announced it will fold TASMC’s and WSMC’s existing fabs into TSMC’s naming structure by renaming them Fab 7 and Fab 8, respectively. Both facilities are located in the Hsin-Chu Science Park, Taiwan and are currently producing eight-inch wafers in high volume.

In addition, TSMC will rename its current Fab 7, one of two new 12-inch fabs under construction – to Fab 14. This fab is being built in Tainan, Taiwan, next to Fab 6, the world’s largest semiconductor manufacturing facility by cleanroom space. The new naming scheme will take effect immediately.

The renamed Fab 7 and Fab 8 facilities were acquired through recent mergers of TSMC-Acer Semiconductor Manufacturing Corporation (TASMC) and Worldwide Semiconductor Manufacturing Company (WSMC). Both mergers are expected to be complete on June 30, 2000.

“In 1999, TSMC’s annual capacity was 1.8 million eight-inch equivalent wafers. By the end of 2000, that number is expected to reach 3.4 million wafers,” said F.C. Tseng, president, TSMC. “This increase is in direct response to the industry’s rising demand for pure-play foundry services. TSMC has been aggressively expanding to meet that demand through fab creation, mergers, and capital investments. In 2000 alone, TSMC’s capital expenditures will rival nearly every other semiconductor manufacturer in the world.”

Renamed Fab Details

TASMC Fab 1 becomes TSMC Fab 7. By the end of 2000, the newly named Fab 7 is expected to handle an annual capacity of nearly 400,000 eight-inch wafers running on 0.25-micron and 0.22-micron processes. WSMC Fab 1 becomes TSMC Fab 8. Fab 8, which will use a 0.25-micron and 0.18-micron process, should reach a total annual capacity of 254,000 eight-inch wafers in 2000, jumping to 602,000 eight-inch wafers in 2001. TSMC Fab 7 becomes TSMC Fab 14. The newly named Fab 14 is under construction in Tainan. Groundbreaking took place in December of 1999 and first wafers out are expected in late 2001. Fab 14, along with TSMC Fab 12, will support the company’s first volume 300-mm wafer production.

“We currently have nine operational fabs and are constructing two 12-inch fabs. In addition, we have substantial capacity commitments at three facilities jointly operated by TSMC and our partners in different geographical locations globally,” Tseng said. “With facilities in Taiwan, Singapore, and the U.S., we have to institute a naming structure that clusters the appropriate fabs and locations together while avoiding redundancy. We believe we have accomplished this through the renaming of these three facilities.”