TSMC December 2004 Sales Report

Hsinchu, Taiwan, January 7, 2005 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (TAIEX: 2330, NYSE: TSM) today said that net sales for December 2004 totaled NT$19,919 million. Full-year sales for 2004 increased 26.8 percent over 2003, to a record high of NT$255,992 million. In US dollar terms, full-year sales for 2004 increased 30.3 percent over 2003.

“Due to a decrease in wafer shipments, December 2004 net sales decreased 5.1 percent versus November 2004. On a year-over-year basis, December 2004 net sales grew 5.0 percent,” said Ms. Lora Ho, vice president and chief financial officer of TSMC.         
        
    Sales Report: (Unit: NT$ million)

Net Sales	2004(1)	2003	Growth Rate
December	19,919	18,965	5.0%
January through December	255,992	201,904	26.8%

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