TSMC Sets Modules for 0.10-Micron Process AlignmentTSMC To Form Alliances with Leading IC Companies at 0.10-Micron

Hsinchu, Taiwan, April 18, 2001 – Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world’s leading semiconductor foundry, has completed the basic modules for the foundry industry’s first 0.10-micron CMOS logic process technology. The company has also started an initiative to align a large number of first-tier technology companies globally to this industry-leading process technology, which is expected to begin production beginning the third quarter of 2002.

“Through this basic set of process modules, we have defined a framework for our 0.10-micron process technology,” said Dr. SY Chiang, senior vice president of research and development for TSMC. “It’s rather like starting a state-of-the-art modular office building, knowing it will be occupied by tenants with a variety of needs. We have a schedule and a basic architecture – the design rules. The arrangement of the offices, or process modules, is a collaborative effort with our advanced technology partners, to ensure that the final building encompasses the needs of all of these occupants.”

Ultimately, TSMC expects to deliver the industry’s most robust 0.10-micron process technology, including high-performance, low-power, mixed-signal/RF, and embedded memory options, said Dr. Chiang.

To satisfy diverse requirements, TSMC is working with a number of leading IC companies to align their next-generation technology requirements with TSMC’s process development efforts. TSMC will provide partners with 0.10-micron IC design rules, transistor models, and interconnect parameters. Through close alignment and shared resources, the TSMC process will be made more portable and therefore improve time-to-market. This alignment should increase efficiency in ramping the 0.10-micron process.

TSMC's objective, Dr. Chiang said, is to satisfy the power, performance and integration requirements of a broad spectrum of technology companies in market segments ranging from broadband to wireless communications, from CPUs to graphics chipsets, and many other applications.

“TSMC is, and always has been, committed to developing its own process technology. However, the decision to embark upon a new technology is never made alone,” said Dr. FC Tseng, president of TSMC. “It requires significant collaboration to ensure that our efforts are aligned with our customers’ needs.”

Because 0.10-micron technology provides for a higher level of integration than has ever been achieved, foundry users need the assurance that other building blocks, such as IP and libraries, can also be aligned with the process technology. The announced alignment initiative should result in a series of collaborations that ensures the usefulness of the technology and preserves the design value add of IDMs and fabless companies.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry’s leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs and six eight-inch wafer fabs. The Company also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and WaferTech. In 2000, TSMC produced the foundry industry's first 300mm customer wafers and began constructing two dedicated 300mm fabs. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at http://www.tsmc.com.