TSMC Monthly Sales Report – December 2003

Fourth Quarter 2003 Sales Achieve Record High; Full-Year Sales of NT$201.9 Billion Also Hit An Historical Record

Hsinchu, Taiwan, January 8, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (TAIEX: 2330, NYSE: TSM) today said that net sales for December 2003 totaled NT$18,965 million, an increase of 2.5 percent from November 2003. TSMC’s fourth quarter 2003 sales grew 5.3 percent sequentially, to a record high, of NT$57,780 million. On a year-over-year basis, TSMC’s fourth quarter 2003 sales increased 40.4 percent.

Ms. Lora Ho, TSMC spokesperson, vice president and chief financial officer, noted that, “In line with our statements in mid-December, 2003, TSMC’s fourth quarter 2003 sales result, which hit a quarterly record high, was better than the guidance we advised in our third quarter 2003 investor conference on October, 28, 2003."

Full-year sales for 2003 increased 25.4 percent over 2002, to a record high of NT$201,904 million.

Sales Report: (Unit: NT$ million)