TSMC Awarded Distinguished IEEE Corporate Innovation Award for 2002

HSIN-CHU, Taiwan, April 2, 2002 – Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (TSMC or the “Company”) today announced that the Company has been awarded the 2002 Corporate Innovation Award from IEEE. The award was given to TSMC “for pioneering and realizing the dedicated IC wafer fabrication business.” TSMC is the first Taiwanese company to receive the award.

The IEEE Corporate Innovation Award was first presented in 1985 in recognition of outstanding and exemplary contributions made by corporations, government and academic institutions around the world for contributions that have resulted in major advancements in electrotechnology. Past recipients of the award include AT&T’s Bell Lab, Hewlett-Packard, IBM, Intel, Microsoft, Motorola, Philips, Sony and Texas Instruments. The award will be presented at an IEEE Honors Ceremony on June 22nd, during the IEEE 2002 Annual Conference in Toronto, Canada.

TSMC Chairman Dr. Morris Chang, indicated that the company is grateful to receive the IEEE 2002 Corporate Innovation Award. This award recognizes TSMC’s creation of the foundry business model, which has fostered significant and innovative contributions to the global semiconductor industry. This business model not only promotes the growth and prosperity of fabless design companies but also contributes in developing the global foundry business into an industry worth billions of US dollars in revenues. Looking ahead, TSMC will continue to provide its customers with comprehensive foundry services with leading-edge technologies to increase their competitiveness.

At present, TSMC holds over 50 percent of the global foundry market. According to industry estimates, over 5 percent of all IC products shipped in 2001 were manufactured by TSMC. TSMC is a leader in advanced process technologies, leading the industry with volume production of 0.18-, 0.15- and 0.13-micron process technologies. Volume production using the next-generation 90nm process is expected to begin in the second half of 2003. Meanwhile, plans for the development of strategic alliances with leading customers are underway to increase the competitiveness of both TSMC and its customers.

About IEEE

With more than 366,000 individual members in 150 countries, the IEEE is the largest and most influential engineering association in the world. The IEEE helps advance global prosperity by promoting the development and application of electrical, electronic and information technologies and sciences for the benefit of humanity. The Technical Field Awards of IEEE are considered the most prestigious awards in the field of electronics. For more information, please go to http://www.ieee.org.

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry industry's largest portfolio of process-proven library, IP, design tools and reference flows. The company has one advanced 300mm wafer fab (Fab 12) in production and one under construction (Fab 14), in addition to five eight-inch fabs (Fab 3, 5, 6, 7 and 8) and one six-inch wafer fab (Fab 2). TSMC also has substantial capacity commitments at its wholly-owned subsidiary, WaferTech, and two joint ventures fabs (Vanguard and SSMC). In early 2001, TSMC became the first IC manufacturer to announce a 90nm technology alignment program with its customers. TSMC's corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please go to http://www.tsmc.com.