TSMC Board of Directors Approves Capital Appropriation for Expanding Capacities

May 11, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE: TSM) today held a meeting of the Board of Directors, at which the Board approved a capital appropriation of projects in the amount of approximately US$1.4 billion to expand its manufacturing capacity in response to increasing customer demand.

TSMC Spokesperson and CFO Ms. Lora Ho noted that, at its meeting, the Board of Directors:

1. Approved a capital appropriation in the amount of US$67.3 million to expand the capacities of its 6-inch and 8-inch fabs by a total of 15,600 8-inch equivalent wafers per month.

2. Approved a capital appropriation in the amount of US$1,334 million to expand the capacity for its 90nm copper process at Fab 12 by 14,000 12-inch wafers per month.