Monthly Sales Report - July 1998

Science-Based Industrial Park, Hsin-Chu, Taiwan, August 7, 1998 - Taiwan Semiconductor Manufacturing Company Ltd. announced its net sales for July 1998 to be NT$3,030 million; revenue from January to July 1998 to be NT$30,367 million.

Mr. Y.C. Huang, Spokesman of the company made the following comments."Net sales for July 1998 declined 15.9% over the same period a year ago as a result of lower unit sales of 8-inch equivalent wafers, which fell 27.7% from the previous year. ASP, on the other hand, rose 17.7% due to improved product mix and favorable foreign exchange. On a sequential basis, net sales in July increased by 0.3% from NT$3,020 million in June."

Sales report: (NT$million)

Net Sales 1998* 1997 change from '97 to '98
July

3,030

3,602

-15.9%
January through July

30,367

20,489

48.2%

(1)1998 figures have not been examined by auditors

TSMC's statement of its current expectations is a forward-looking statement subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statement. Information as to those factors that could cause actual results to vary can be found in TSMC's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission on April 30, 1998.