TSMC to Launch ADR Conversion Sale #3

HSIN-CHU, Taiwan, January 15, 2001 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC; NYSE: TSM) today announced certain matters in connection with the sale of TSMC common shares in ADS form (the Transaction) pursuant to the “Policy for TSMC Conversion Sale Program” (the Program), adopted by the Board of Directors on May 11, 1999. As required by the Program, the total number of common shares permitted to be sold in this Transaction is capped at 58,446,822 shares, 0.5% of TSMC total outstanding common share.

To comply with the relevant U.S. securities laws, shares derived from the mergers with TSMC-Acer Semiconductor Manufacturing Corp. and Worldwide Semiconductor Manufacturing Corp., (collectively “Merger Shares”), may not be sold in the Transaction. Any other common shares which have been held at any time in the same account with the Merger Shares will also not be eligible for sale in the Transaction, because the shareholder would not be able to distinguish the Merger Shares from the other common shares held in such account.

Any eligible shareholder who is interested in participating in the Transaction should submit a completed application to the administrative agent, Barits Securities Corp., not later than 5:00 p.m. February 8, 2001. Please contact Barits at +886-2-23668739 or +886-2-23668774 to obtain an application form and other relevant information. Relevant information is also available on the web: www.tsmc.com.tw