TSMC shareholders approve stock dividend of NT$5 per share

Science-Based Industrial Park, Hsin-Chu, Taiwan, May 13, 1996 - At Taiwan Semiconductor Manufacturing Company's (TSMC) shareholders meeting held today, shareholders approved stock dividend of NT$5 per share.

Dr. Morris Chang, Chairman and President of TSMC, reported at the meeting that despite the world-wide IC market's downturn in 1996, TSMC still reached record highs in sales revenue and net income last year. In 1997, the world-wide IC industry is expected to register overall growth of 10% to 15%; however, in the first half of the year the prices of IC products are still under pressure. Facing another challenging year in 1997, TSMC will utilize its competitive advantages in capacity expansion, technology leadership, product quality and customer service to maintain its leading market share. TSMC is assertively moving forward to hold onto its number one position in the foundry market.

TSMC spokesman, Mr. YC Huang, outlined several important decisions made at the shareholders meeting as follows:

Accepted the company's financial statements for the year 1996 prepared by the auditors. The net sales revenue for 1996 were NT$39.4 billion, net income was NT$19.4 billion, and earnings per share were NT$7.31. Approved that for each 1,000 shares held by a shareholder, the shareholder will be entitled to receive stock dividend of 500 shares at no charge. Approved the capitalization of stock dividends and stocks for profit sharing to be distributed from 1996 profits. Subsequent to this capital increase, the paid-in capital of the company shall be in the total amount of NT$40,813 million. Board of Directors and Supervisors were re-elected. The new directors are Morris, Chang; G.J. Kleisterlee and A.P.M. van der Poel, representatives from Philips Electronics N.V.; Ching-Chang Yen and Ming-Te Lin, representatives from Development Fund, Executive Yuan; J.C. Lobbezoo, representative from Philips Electronics N.V.; F.C. Tseng; Chintay Shih, representative from Development Fund, Executive Yuan; L.P. Hsu, representative from Philips Electronics N.V.; I-Kwei Wu, representative from Maw-Chong Investment Company, Ltd.. The new supervisors are E.Th. Ausems, representative from Philips Electronics N.V.; Chung-Ying Hu, representative from Development Fund, Executive Yuan; Jeromes S.N. Hu.