TSMC Secondary Offering of 52 million ADS at US$ 16.75 per share

Hsinchu, Taiwan, February 1, 2002 --Hsinchu, Taiwan, February 1, 2002– On the evening of January 31, 2002 New York time, Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (“TSMC”) successfully issued 52 million American Depositary Shares (ADSs) on the New York Stock Exchange. The offering price per ADS was US$ 16.75. Each TSMC ADS represents five common shares of TSMC.

Mr. Harvey Chang, TSMC spokesperson and senior vice president, stated that the success of TSMC’s secondary offering of ADS shows the recognition of TSMC’s performance and future growth by global investors. After this successful offering, TSMC ADSs outstanding increased to approximately 9 percent from 7.2 percent of its total share capital. The offering was completely secondary by the Development Fund and Stabilization Fund of Taiwan and other individual shareholders.

Goldman Sachs (Asia) L.L.C., the sole global coordinator and book runner responsible for the TSMC ADS offering, pointed out that the offering price of US$16.75 per ADS (NT$117 per common share) represented a 33.7 percent premium to the January 31, 2002 closing price (NT$87.5) of the TSMC common shares that trades on the Taiwan Stock Exchange. In addition, the offering price of US$16.75 represented 1.3 percent discount to the closing price of TSMC’s ADSs on January 31, 2002. This is the lowest discount for any Taiwanese marketed secondary offering. The TSMC ADS offering totals US$871 million. The underwriters may also exercise an over-allotment option of 7,800,000 ADSs within 30 days.