TSMC Announce May 2005 Sales and Revise Upward 2Q2005 Guidance

Hsinchu, Taiwan, R.O.C. – June 9, 2005 -- TSMC (TAIEX: 2330, NYSE: TSM) today announced that net sales for May 2005 totaled NT$19,508 million, and that revenues for January through May 2005 were NT$94,064 million.

Ms. Lora Ho, TSMC vice president and chief financial officer, noted that, “Due to higher wafer shipments, net sales for May 2005 increased by 3.2 percent compared to April 2005. On a year-over-year basis, net sales for May 2005 decreased 10.2 percent.”

“Due to demand recovery from our customers, we therefore revised upward our second quarter guidance with respect to the following items: wafer shipment will increase by a low double digit percentage point, overall utilization rate will be about 84%, and gross profit margin will be about 40%, which is at the high end of our initial guidance,” Ms. Ho added.         
        
Sales Report: (Unit: NT$ million)

Net Sales	2005(1)	2004	Increase (Decrease) %
May	19,508	21,720	(10.2)
January through May	94,064	99,863	(5.8)

(1): Year 2005 figures have not been audited.