TSMC May Sales Set Record High

Hsinchu, Taiwan, June 9, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (“the Company”) (TAIEX: 2330, NYSE: TSM) today announced that net sales for May 2004 reached a record high of NT$21,720 million, representing a 5.3 percent increase over April 2004. On a year-over-year basis, net sales for May 2004 increased 29.2 percent.

Revenues for January through May 2004 totaled NT$99,863 million, an increase of 39.9 percent over the same period in 2003.

Ms. Lora Ho, TSMC vice president and chief financial officer, noted that, “TSMC’s wafer shipments for May 2004 continued to grow over April 2004 due to increased market demand. As a result, sales revenues for May 2004 continued to rise and reached a record high.”

Sales Report: (Unit: NT$ million)

Net Sales

2004(1)

2003

Growth Rate

May

21,720

16,812

29.2%

January through May

99,863

71,401

39.9%

(1): Year 2004 figures have not been reviewed.