TSMC Reports Second Quarter EPS of NT$0.96

Hsin-Chu, Taiwan, R.O.C., July 26, 2007 -- TSMC today announced consolidated revenue of NT$74.92 billion, net income of NT$25.48 billion, and diluted earnings per share of NT$0.96 (US$0.15 per ADS unit) for the second quarter ended June 30, 2007.

Year-over-year, second quarter revenue decreased 8.8% while net income and diluted EPS both decreased 25.1%. On a sequential basis, second quarter results represent a 15.4% increase in revenue, and an increase of 35.3% both in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Second quarter results were in-line with the guidance given on April 26. Advanced process technologies (0.13-micron and below) accounted for 53% of wafer revenues with 90-nanometer process technology accounting for 26% and 65-nanometer reaching 3% of total wafer sales. Gross margin was 43%, operating margin was 33%, and net margin increased 5 percentage points to 34% from the previous quarter.

· Revenue is expected to be between NT$85 billion and NT$87 billion;
· Gross profit margin is expected to be between 43% and 45%;
· Operating profit margin is expected to be between 33% and 35%.