TSMC August 2003 Sales Hit Record High

Hsinchu, Taiwan, September 9, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (“TSMC” or “the Company”) (TAIEX: 2330, NYSE: TSM) today announced that net sales for August 2003 totaled NT$18,317 million, reaching a new historical record high. On a month-over-month basis, August 2003 net sales increased 3.8 percent from July 2003 sales. Compared to the same period a year ago, August 2003 net sales increased 35.2 percent. Revenues for January through August 2003 totaled NT$125,213 million, an increase of 17.0 percent over the same period in 2002.

Ms. Lora Ho, TSMC spokesperson and vice president, noted that the Company’s August 2003 sales revenues increased as a result of higher wafer shipments compared to July 2003. In addition, on a sequential basis, TSMC’s wafer shipments in the third quarter of 2003 are expected to be slightly higher than the five to nine percent range noted in the Company’s previous third quarter 2003 guidance.

Sales Report: (Unit: NT$ million)

Net Sales

2003(1)

2002

Growth

August

18,317

13,544

35.2%

January through August

125,213

107,053

17.0%

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