TSMC October 2003 Sales Exceed NT$ 20 Billion

Hsinchu, Taiwan, November 7, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (“TSMC” or “the Company”) (TAIEX: 2330, NYSE: TSM) today announced that net sales for October 2003 totaled NT$20,304 million, a new record high for a third consecutive month. The October results also marked the first time that the Company’s monthly sales exceeded NT$ 20 billion.

TSMC October 2003 net sales increased 7.4 percent from September 2003 sales on a month-over-month basis. Compared to the same period a year ago, October 2003 net sales increased 33.3 percent. Revenues for January through October 2003 totaled NT$164,429 million, an increase of 21.8 percent over the same period in 2002.

Ms. Lora Ho, TSMC spokesperson and vice president, noted that the Company’s October 2003 wafer shipments grew over September 2003 due to increased customer demand in anticipation of the Christmas holiday season, especially for consumer and communication products. As a result, the Company’s October 2003 sales increased sequentially.

Sales Report: (Unit: NT$ million)

Net Sales

2003(1)

2002

Growth

October

20,304

15,231

33.3%

January through October

164,429

135,038

21.8%

(1): Year 2003 figures have not been audited.