TSMC September Sales Report

Hsinchu, Taiwan, October 7, 2004 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (“the Company”) (TAIEX: 2330, NYSE: TSM) today said that net sales for September 2004 reached NT$23,174 million. Revenues for January through September 2004 totaled NT$192,117 million.

Ms. Lora Ho, VP and Chief Financial Officer of TSMC said that, “Due to a slight decline of wafer shipments sequentially, net sales for September 2004 decreased by 1.0 percent from August 2004. On a year-over-year basis, net sales for September 2004 grew 22.5 percent.”

“TSMC’s 2004 third quarter guidance remains unchanged from that of July 29, 2004. Revenues for the third quarter of 2004 hit a record high, reaching NT$69,736 million,” added Ms. Ho.

Ms. Ho also noted that some softening of customer demand was seen over the past two months. If this continues, the Company’s fourth quarter revenues would decline slightly versus the third quarter of 2004.

Sales Report: (Unit: NT$ million)

Net Sales	2004(1)	2003	Growth Rate
September	23,174	18,911	22.5%
January through September	192,117	144,125	33.3%

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