TSMC ISO9001:2000 Quality Certification Sets New Record for Foundry IndustryCertification achieved company-wide only five months after the new standards became availableTSMC is the first semiconductor manufacturer in Taiwan to achieve this level of excellence

Hsinchu, Taiwan, May 29, 2001 --Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today (29) set a new record in quality certification for the foundry industry, achieving the new ISO9001:2000 (year 2000 version of ISO9001) certification company-wide only five months after the new standards became available. TSMC is the first semiconductor manufacturer in Taiwan to achieve this rigorous level of manufacturing certification. The certification by ISO9001:2000 further reinforces TSMC's quality leadership in semiconductor manufacturing and services.

The new ISO9001:2000 quality system enhances strategic planning, deployment, and measurement of results. The new standard also stipulates that continuous improvement cycle, PDCA (Plan-Do-Check-Action) cycle, and evaluation of effectiveness of each system or business process shall be carried out. The objective is to ensure the total satisfaction of external and internal customers. The new ISO9001 officially went into effect in December last year. TSMC quickly compared its existing system against the new criteria, and attained the company-wide certification after only five months of deployment.

Dr. John Yue, TSMC Vice President of Quality and Reliability, said, "TSMC is the first semiconductor manufacturer in Taiwan and one of the first handful of IC manufacturing companies worldwide to obtain the new ISO9001:2000 certification. This certification once again demonstrates our commitment to the principle that 'quality is the guiding principle of our work and services.' Through continuous improvement of our internal quality management system and using external standards such as the new ISO 9001:2000 version, we at TSMC are able to maintain our leadership in the increasingly competitive foundry industry."

In addition, TSMC Fab 7 and Fab 8, which were added into the Company in year 2000 through the acquisition of Taiwan-Acer Semiconductor Manufacturing Company and Worldwide Semiconductor Manufacturing Corporation, also obtained the QS-9000 and ISO9001:2000 certifications at the same time. This provides TSMC customers with foundry services at the same quality level throughout each of TSMC fabs.

TSMC Quality Milestones

TSMC obtained the original ISO-9001 certification in 1993, was awarded the Ford Q1 Quality award in 1995, and the Ford Total Quality Excellence (TQE) standard in 1996. In 1998, the Company became the first semiconductor manufacturer in Taiwan to obtain the QS-9000 certification, which stipulates higher requirements on the operation processes and quality systems of an enterprise. In 2001, TSMC set a new record of quality certification in the foundry industry by obtaining the new ISO9001:2000 certification only five months after the new standards became available. TSMC is the first semiconductor manufacturer in Taiwan to obtain this certification.

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.