TSMC Senior Vice President, General Counsel and SpokespersonK. C. Chen To Teach Law

Science-Based Industrial Park, Hsin-Chu, Taiwan, July 12, 2001 — Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today announced that its Senior Vice President, General Counsel and Spokesperson, K. C. Chen, will resign at the end of the year to teach law at two of Taiwan's leading universities. After she leaves her current position at TSMC, she will continue to teach at Institute of Law for Science and Technology at National Tsing Hua University. She will also teach graduate program at College of Commerce at National Chengchi University next year.

Ms. Chen will serve on a search committee that will name her successor at TSMC before the end of the year. In addition, she will serve as a consultant to TSMC and will continue to provide her expertise for the Company.

TSMC Chairman Dr. Morris Chang stated that, "Ms. K. C. Chen has dedicated herself to TSMC since she joined the Company in 1997. Over the past four years, she has served as our Senior Vice President and General Counsel, responsible for legal and intellectual property management. She has also served as Chairman of TSMC Education and Culture Foundation, helping to establish, plan and professionally manage the foundation. In addition, Ms. Chen has served as TSMC's Spokesperson since May, 2000."