TSMC 2002 Fourth Quarter Report

January 28,2003 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (TSMC) today announced its financial results for the fourth quarter of 2002. Net sales for the fourth quarter, ended December 31, 2002, reached NT$41,154 million, while net income totaled NT$2,553 million. Earnings per share for the fourth quarter of 2002 were NT$0.13 based on the current 18,580,700 thousand weighted average outstanding shares.

For fiscal year 2002, ended December 31, the Company's net sales were NT$160,961 million and net income reached NT$21,610 million. Earnings per share for the full year of 2002 were NT$1.14.

TSMC Spokesperson Mr. Harvey Chang said fourth quarter 2002 net sales grew 3.3% over the third quarter, with some fourth quarter revenues attributable to third quarter inventory. The Company's utilization rate for the fourth quarter decreased to 61% from 79 % in the third quarter. Net income declined 19.2% in the same period.

Compared to the fourth quarter of 2001, TSMC's net sales for the fourth quarter of 2002 grew 24.2%, while net income decreased 43.4%. Earnings per share for the fourth quarter of 2002 were NT$0.13, representing a 44.4 percent decrease from NT$ 0.24 for the fourth quarter of 2001.

Mr. Harvey Chang noted that the Company's book-to-bill ratio was above 1.0 in both November and December 2002, indicating a steady growth in orders. This is in line with guidance made during the third quarter 2002 investor conference, whereby TSMC anticipates revenue growth will return in the second quarter of 2003.

TSMC's 2002 audited financial results are subject to approval by the TSMC Board of Directors.

TSMC's 2002 fourth quarter results: (Unit: NT$million, except for EPS)

	4Q'02 Amount*	4Q'01 Amount	YoY Change %	3Q'02 Amount	QoQ Change %
Net sales	41,154	33,130	24.2%	39,835	3.3%
Gross profit	10,682	11,089	-3.7%	12,835	-16.8%
Income from operations	5,651	5,859	-3.5%	8,367	-32.5%
Income before tax	3,078	4,298	-28.4%	6,030	-49.0%
Net income	2,553	4,514	-43.4%	3,160	-19.2%
EPS(NT$)	0.13**	0.24***	-44.4%	0.16****	-19.9%

* 2002 fourth quarter figures have not been approved by Board of Directors ** Based on 18,580,700 thousand weighted average outstanding shares *** Based on 18,622,887 thousand weighted average outstanding shares ****Based on 18,580,637 thousand weighted average outstanding share

TSMC's 2002 results: (Unit: NT$million, except for EPS)

	2002* Amount	2001 Amount	YoY Change %
Net sales	160,961	125,888	27.9%
Gross profit	51,967	36,381	42.8%
Income from operations	34,176	17,342	97.1%
Income before tax	27,112	10,659	154.4%
Net income	21,610	14,483	49.2%
EPS(NT$)	1.14**	0.75***	52.0%

* 2002 figures have not been approved by Board of Directors ** Based on 18,580,700 thousand weighted average outstanding shares *** Based on 18,622,887 thousand weighted average outstanding shares