1934 Act Registration No. 1-14700

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of January 2009

Taiwan Semiconductor Manufacturing Company Ltd.

(Translation of Registrant’s Name Into English)

No. 8, Li-Hsin Rd. 6,
Hsinchu Science Park,
Taiwan
(Address of Principal Executive Offices)

     (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F þ                    Form 40-F o

     (Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes o                    No þ

(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82:                     .)

TABLE OF CONTENTS

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Taiwan Semiconductor Manufacturing Company Ltd.
Date: January 22, 2009	By	/s/ Lora Ho
		Lora Ho
		Vice President & Chief Financial Officer

FOR IMMEDIATE RELEASE
4Q08 Quarterly Management Report
January 22, 2009

CONTACT
Elizabeth Sun / Harrison Hsueh

Investor Relations Division
TSMC
invest@tsmc.com
886-3-568-2085/ 2088

Topics in This Report

• Revenue Analysis

• Profit & Expense Analysis

• Financial Condition Review

• Cash Flow

• CapEx & Capacity

• Recap of Recent Important Events & Announcements

Operating Results Review:

Summary:

(Amounts are on consolidated basis and are in
NT billions except otherwise noted)	4Q08			3Q08			4Q07			2008			2007
EPS (NT$ per common share)		0.48			1.18			1.29			3.83			4.06
(US$ per ADR unit)		0.07			0.19			0.20			0.61			0.62
Consolidated Net Sales		64.56			92.98			93.86			333.16			322.63
Gross Profit		20.19			43.09			44.84			141.75			142.35
Gross Margin		31.3	%		46.3	%		47.8	%		42.5	%		44.1	%
Operating Expense		(8.17	)		(10.18	)		(8.08	)		(37.31	)		(30.63	)
Operating Income		12.02			32.92			36.76			104.44			111.72
Operating Margin		18.6	%		35.4	%		39.2	%		31.4	%		34.6	%
Non-Operating Items		1.07			1.51			2.57			7.04			9.92
Net Income		12.45			30.57			34.48			99.93			109.18
Net Profit Margin		19.3	%		32.9	%		36.7	%		30.0	%		33.8	%
Wafer Shipment (kpcs 8 inch-equiv.)		1,532			2,411			2,357			8,467			8,005

Note: Total outstanding shares were 25,625mn units on 12/31/08

Financial Highlights:

Fourth Quarter 2008

• Consolidated net sales were NT$64.6 billion, declining 30.6% quarter-over-quarter and declining 31.2% year-over-year;

• Gross margin was 31.3%, a decrease by 15.0 percentage points from 3Q08. Operating margin was 18.6%, declined by 16.8 percentage points from 3Q08. On a year-over-year basis, gross margin and operating margin declined by 16.5 and 20.6 percentage points respectively, although 4Q07 results did not include the expensing of employee profit sharing;

• EPS was NT$0.48, with net profit margin of 19.3%

Full Year 2008

• Consolidated net sales were NT$333.2 billion, up 3.3% from 2007;

• Gross margin and operating margin were 42.5% and 31.4%, declining 1.6 and 3.2 percentage points from 2007 respectively. Notice however, 2007 results did not include expensing of employee profit sharing;

• Earnings per share was NT$3.83, with net profit margin of 30.0%

TSMC
January 22, 2009 Page 2

I. Revenue Analysis

     I. Wafer Sales Analysis

By Application	4Q08			3Q08			4Q07
Computer		32	%		33	%		35	%
Communication		43	%		41	%		42	%
Consumer		19	%		20	%		15	%
Industrial/Others		6	%		6	%		8	%

By Technology	4Q08			3Q08			4Q07
65nm and below		27	%		25	%		10	%
90nm		21	%		26	%		29	%
0.11/0.13um		17	%		15	%		20	%
0.15/0.18um		22	%		22	%		27	%
0.25/0.35um		10	%		9	%		10	%
0.50um+		3	%		3	%		4	%

By Customer Type	4Q08			3Q08			4Q07
Fabless/System		72	%		70	%		68	%
IDM		28	%		30	%		32	%

By Geography	4Q08			3Q08			4Q07
North America		73	%		74	%		79	%
Asia Pacific		13	%		13	%		11	%
Europe		11	%		10	%		8	%
Japan		3	%		3	%		2	%

Revenue Analysis:

Application—Fourth quarter revenue was NT$64.6 billion. 4Q08 business saw a sharp decline in the demand for wafer while the NT dollar depreciated 5.6% against the US dollar. Weakness in demand was seen across all applications during the quarter. On a sequential basis, revenues from consumer, computer, and communication applications decreased 39%, 34% and 32%, respectively.

Technology—Revenue from 65nm reached 27% of total wafer sales during the quarter, up from 25% in the previous quarter. Meanwhile, revenue from 90nm declined from 26% to 21% of total wafer sales. Overall, revenues from advanced technologies (0.13-micron and below) accounted for 65% of total wafer sales, slightly below the 66% in 3Q08.

Customer—Revenues from IDM customers accounted for 28% of total wafer sales in 4Q08, slightly lower than 3Q08, due to increasing in-sourcing of those customers in the weak business environment.

Geography—On a sequential basis, there were no major changes on the geographic breakdown, while revenues from customers based in North America accounted for 73% of total wafer sales.

II. Profit & Expense Analysis

     II — 1. Gross Profit Analysis

(In NT billions)	4Q08			3Q08			4Q07			2008			2007
COGS		44.37			49.89			49.02			191.41			180.28
Depreciation		19.29			19.06			18.50			74.70			73.07
Other MFG Cost		25.08			30.83			30.52			116.71			107.21
Gross Profit		20.19			43.09			44.84			141.75			142.35
Gross Margin		31.3	%		46.3	%		47.8	%		42.5	%		44.1	%

Gross Profit Analysis:

Gross margin in 4Q08 was 31.3%, down 15.0 percentage points from 3Q08, mainly driven by a sharp decline of production activities, partially offset by cost improvement and a more favorable exchange rate.

Gross margin for full year 2008 was 42.5%, down 1.6 percentage points from 2007, reflecting the impact from the expensing of employee profit sharing (2.3 percentage points).

TSMC
January 22, 2009 Page 3

     II — 2. Operating Expenses

(In NT billions)	4Q08			3Q08			4Q07			2008			2007
Total Operating Exp.		8.17			10.18			8.08			37.31			30.63
SG&A		3.34			4.20			3.07			15.83			12.68
Research & Development		4.83			5.98			5.01			21.48			17.95
Total Operating Exp. as a % of Sales		12.7	%		10.9	%		8.6	%		11.1	%		9.5	%

Operating Expenses:

Total operating expenses for 4Q08 decreased by 19.7% sequentially to NT$8.2 billion, or 12.7% of net sales, compared with 10.9% of net sales in 3Q08.

Research and development expenses decreased by NT$1.2 billion quarter-over-quarter, mainly due to a lower level of employee profit sharing.

SG&A expenses decreased by NT$849 million from 3Q08, also due to a sharply lower level of employee profit sharing.

On a full year basis, total operating expenses accounted for 11.1% of net sales in 2008, compared with 9.5% of net sales in 2007, mainly reflecting the impact from expensing of employee profit sharing in 2008 (2.2 percentage points).

     II — 3. Non-Operating Items

(In NT billions)	4Q08			3Q08		4Q07		2008			2007
Non-Operating Inc./(Exp.)		1.41			1.33		1.69		6.34			7.41
Net Interest Income/(Exp.)		1.18			1.15		1.21		4.76			4.81
Other Non-Operating		0.23			0.18		0.48		1.58			2.60
L-T Investments		(0.34	)		0.18		0.88		0.70			2.51
SSMC		(0.07	)		0.15		0.47		0.76			1.18
Others		(0.27	)		0.03		0.41		(0.06	)		1.33
Total Non-Operating Items		1.07			1.51		2.57		7.04			9.92

Non-Operating Items:

For 4Q08, combined result from non-operating income and long-term investments income was a gain of NT$1.1 billion.

Non-operating income was NT$1.4 billion, up from NT$1.3 billion in 3Q08, primarily due to foreign exchange gains and no additional impairment losses on idle assets as compared to 3Q08. Meanwhile, the gains were partially offset by impairment losses of financial assets from venture capital funds by about NT$481 million in this quarter.

Net investment losses in the quarter were NT$340 million, mainly from VIS and SSMC.

For full year 2008, non-operating income decreased by NT$1.1 billion to NT$6.3 billion, mostly due to impairment losses on financial assets and lower valuation on certain marketable securities, partially offset by an increase of foreign exchange gains. Net investment gains decreased by NT$1.8 billion to NT$702 million, mainly due to VIS and SSMC. Combining results from non-operating income and long-term investments, the gain was NT$7.0 billion in 2008, compared with a gain of NT$9.9 billion in 2007.

TSMC
January 22, 2009 Page 4

     II — 4. PSE Impact

	4Q08			3Q08			4Q07			2008			2007
Gross Margin w/ PSE		31.3	%		46.3	%		43.0	%		42.5	%		39.7	%
Gross Margin w/o PSE		32.8	%		48.9	%		47.8	%		44.8	%		44.1	%
PSE Impact		-1.5	%		-2.6	%		-4.8	%		-2.3	%		-4.4	%
Operating Margin w/ PSE		18.6	%		35.4	%		29.8	%		31.4	%		26.0	%
Operating Margin w/o PSE		21.5	%		40.3	%		39.2	%		35.9	%		34.6	%
PSE Impact		-2.9	%		-4.9	%		-9.4	%		-4.5	%		-8.6	%

*	PSE: Profit Sharing Expenses
**	2007 PSE impact is estimated using the 6/12/2008 closing share price adjusted for dividends

The Impact of Employee Profit Sharing:

Total impact from employee profit sharing expensing (PSE) on gross margin in 4Q08 was 1.5 percentage points, down 1.1 percentage points from 3Q08, due to an overall decrease in net income. Similarly, total PSE impact on operating margin was 2.9 percentage points in 4Q08.

For full year 2008, total impacts from PSE on gross margin and operating margin were 2.3 percentage points and 4.5 percentage points, respectively

III. Financial Condition Review

     III — 1. Liquidity Analysis
                (Selected Balance Sheet Items)

(In NT billions)	4Q08		3Q08		4Q07
Cash & Marketable Securities		211.45		158.17		174.83
Accounts Receivable — Trade		18.50		45.33		42.42
Inventory		14.88		21.82		23.86
Total Current Assets		252.62		232.35		249.82
Accounts Payable		14.04		17.75		19.33
Current Portion of Bonds Payable		8.00		8.00		0.00
Accrued Bonus to Employees, Directors and Supervisors		15.37		13.46		0.00
Accrued Liabilities and Others		19.40		22.92		29.38
Total Current Liabilities		56.81		62.13		48.71
Current Ratio (x)		4.4		3.7		5.1
Net Working Capital		195.81		170.22		201.11

Liquidity Analysis:

At the end of 4Q08, total current assets increased by NT$ 20.3 billion to NT$252.6 billion, mainly due to the free cash flow of NT$52.0 billion generated in this quarter.

Total current liabilities decreased by NT$5.3 billion in 4Q08, primarily due to declines in accounts payable and in accruals due to lower levels of production activities.

Net working capital was NT$195.8 billion and current ratio increased to 4.4 at the end of this quarter.

     III — 2. Receivable/Inventory Days

(In Number of Days)	4Q08		3Q08		4Q07
Days of Receivable		46		43		42
Days of Inventory		40		45		48

Receivable and Inventory Days:

Sequentially, days of receivable increased by three days to 46 days in 4Q08, mainly due to a sharp decline of revenue in the quarter.

Days of inventory decreased by five days to 40 days, mostly due to a lower level of production activities resulted from continued weaker demand environment.

TSMC
January 22, 2009
Page 5

     III — 3. Debt Service

(In NT billions)	4Q08		3Q08		4Q07
Cash & Marketable Securities		211.45		158.17		174.83
Interest-Bearing Debt		23.44		23.41		23.06
Net Cash Reserves		188.01		134.76		151.77

Debt Service:

Net cash reserves — defined as the excess of cash and short-term marketable securities over interest-bearing debt — increased by NT$53.2 billion to NT$188.0 billion at the end of 4Q08, primarily due to free cash flow of NT$52.0 billion generated in this quarter.

IV. Cash Flow

     IV — 1.1. Cash Flow Analysis

(In NT billions)	4Q08			3Q08			4Q07
Net Income		12.45			30.57			34.49
Depreciation & Amortization		20.96			20.69			20.28
Other Operating Sources/(Uses)		29.83			4.64			4.99
Total Operating Sources/(Uses)		63.24			55.90			59.76
Capital Expenditure		(11.26	)		(10.38	)		(19.78	)
Marketable Financial Instruments		30.31			(18.07	)		8.20
Other Investing Sources/(Uses)		(1.04	)		1.93			(1.08	)
Net Investing Sources/(Uses)		18.01			(26.52	)		(12.66	)
Cash Dividends		0.00			(76.78	)		0.00
Employee Profit Sharing		0.00			(3.94	)		0.00
Repayment of Bonds Payable		0.00			0.00			(4.50	)
Purchase of Treasury Stock		0.00			(23.81	)		(45.41	)
Other Financing Sources/(Uses)		(0.30	)		(0.43	)		(0.20	)
Net Financing Sources/(Uses)		(0.30	)		(104.96	)		(50.11	)
Net Cash Position Changes		80.95			(75.58	)		(3.01	)
Exchange Rate Changes & Others		1.21			2.68			(0.33	)
Ending Cash Balance		194.61			112.45			94.99

     IV — 1.2. Cash Flow Analysis

(In NT billions)	2008			2007
Net Income		99.93			109.18
Depreciation & Amortization		81.51			80.01
Other Operating Sources/(Uses)		40.05			(5.42	)
Total Operating Sources/(Uses)		221.49			183.77
Capital Expenditure		(59.22	)		(84.00	)
Marketable Financial Instruments		52.35			24.68
Other Investing Sources/(Uses)		(1.17	)		(11.37	)
Net Investing Sources/(Uses)		(8.04	)		(70.69	)
Cash Dividends		(76.78	)		(77.39	)
Employee Profit Sharing		(3.94	)		(4.57	)
Repayment of Bonds Payable		0.00			(7.00	)
Repurchase of Treasury Stock		(33.48	)		(45.41	)
Other Financing Sources/(Uses)		(1.19	)		(1.04	)
Net Financing Sources/(Uses)		(115.39	)		(135.41	)
Net Cash Position Changes		98.06			(22.33	)
Exchange Rate Changes & Others		1.56			(0.52	)
Ending Cash Balance		194.61			94.99

Summary of Cash Flow:

Cash generated from operating activities totaled NT$63.2 billion during 4Q08, up from NT$55.9 billion in 3Q08, mainly due to a sharp decline of non-cash working capital as a result of much lowered levels of production activities.

Net cash generated from investing activities was NT$18.0 billion in 4Q08, reflecting the capital expenditure of NT$11.3 billion and a net decrease of NT$30.3 billion in marketable financial instruments.

As a result, TSMC ended 4Q08 with a cash balance of NT$194.6 billion.

On a full year basis, cash generated from operating activities increased by NT$37.7 billion in 2008, meanwhile, capital expenditures and marketable financial instruments decreased by NT$24.8 billion and NT$27.7 billion, respectively. Cash dividends paid in 2008 were NT$76.8 billion. TSMC also spent NT$33.5 billion in share buybacks.

TSMC
January 22, 2009
Page 6

     IV — 2. Operating and Free Cash Flows

Operating and Free Cash Flows:

Cash flows generated from operating activities were NT$63.2 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$52.0 billion in 4Q08, compared to NT$45.5 billion in 3Q08.

Total free cash flow generated in 2008 reached NT$162.3 billion, compared with NT$99.8 billion in 2007.

V. CapEx & Capacity

     V — 1. Capital Expenditures

(In US millions)	1Q08		2Q08		3Q08		4Q08		2008		2007
TSMC		452		712		317		326		1,807		2,475
XinTec and GUC		13		5		3		2		23		47
TSMC Shanghai & WaferTech		18		11		11		12		52		31
Other TSMC Subsidiaries		1		0		1		2		4		4
Total TSMC		484		728		332		342		1,886		2,557

Capital Expenditures:

Capital expenditures for TSMC on a consolidated basis totaled US$342 million in 4Q08.

For year 2008, total capital expenditures for TSMC consolidated group was US$1.9 billion, compared with US$2.6 billion spent in 2007.

     V — 2. Capacity

	1Q08		2Q08		3Q08		4Q08		2008		1Q09
Fab / (Wafer size)	(A)		(A)		(A)		(A)		(A)		(F)
Fab-2 (6")(1)		248		267		270		272		1,056		274
Fab-3 (8")		277		281		268		274		1,100		286
Fab-5 (8")		163		165		161		161		650		162
Fab-6 (8")		265		267		268		282		1,082		295
Fab-8 (8")		262		275		267		272		1,076		275
Fab-12 (12")(2)		197		207		214		221		840		218
Fab-14 (12")(2)		167		185		229		236		818		238
WaferTech (8")		105		105		106		106		420		106
TSMC (Shanghai) (8")		88		110		128		128		453		128
TSMC total capacity (8" equiv. Kpcs)		2,117		2,236		2,346		2,405		9,104		2,431
SSMC (8")		63		67		69		73		272		64
Total managed capacity (8" equiv. Kpcs)		2,180		2,303		2,416		2,478		9,377		2,495

(1)	Figures represent number of 6" wafers. Conversion to 8"-equivalent wafers is obtained by dividing this number by 1.78
(2)	Figures represent number of 12" wafers. Conversion to 8"-equivalent wafers is obtained by multiplying this number by 2.25

Capacity:

Total TSMC managed capacity was 2,478K 8-inch equivalent wafers in the fourth quarter, 3% more than 3Q08. TSMC managed capacity in 1Q09 is expected to increase by 1% to reach 2,495K 8-inch equivalent wafers, mainly due to productivity improvement.

Total managed capacity in 2008 was 9,377K 8-inch equivalent wafers, representing an increase of 13% from 8,290K 8-inch equivalent wafers in 2007, while capacity for 12-inch wafer fabs increased by 27%.

TSMC
January 22, 2009
Page 7

VI. Recap of Recent Important Events & Announcements

l	TSMC Wins the Award of “Grand Prix for Best Overall Investor Relations at a Taiwanese Company — Large-Cap” by IR Magazine (2008/12/11)
l	TSMC Chairman Dr. Morris Chang Receives Semiconductor Industry Association’s Highest Honor “The 2008 Robert N. Noyce Award” (2008/11/18)
l	TSMC Ramps 40nm Volume Production to Promote Innovation as Foundries Assume a Larger Role for $300 Billion Industry — Most Advanced Cellular, Wireless, and Consumer Electronic Innovations Targeted for Foundry’s First 40 Nanometer (nm) Logic Process (2008/11/17)
l	TSMC Recognizes Outstanding Suppliers at Supply Chain Management Forum (2008/11/14)
l	TSMC Board Approves Cancellation of Treasury Shares to Reduce Total Issued Shares by 1.07 Percent (2008/11/11)
l	TSMC Adds New High Voltage Features to Advanced 0.13-micron Processes Aimed at High Resolution Display Drivers (2008/11/05)
l	TSMC Holds 2008 Green Forum on “Present and Future of Green Factories” to Launch Taiwan Corporate Sustainability Forum Series (2008/10/16)
l	TSMC and MAPPER Take Next Step in Exploring Multiple E-beam Lithography for IC Manufacturing at 22 nanometer node and Beyond (2008/10/13)

* Please visit TSMC’s Web site (http://www.tsmc.com) for details about these and other announcements.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) ⁽¹⁾

	December 31, 2008 (audited)									September 30, 2008 (unaudited)						December 31, 2007 (audited)						QoQ						YoY
	USD			NTD			%			NTD			%			NTD			%			Amount			%			Amount			%
ASSETS
Current Assets
Cash and Cash Equivalents	$	5,922		$	194,614			34.8		$	112,446			20.4		$	94,986			16.6		$	82,168			73.1		$	99,628			104.9
Investments in Marketable Financial Instruments		512			16,836			3.0			45,724			8.3			79,848			14.0			(28,888	)		(63.2	)		(63,012	)		(78.9	)
Accounts Receivable — Trade, Net		563			18,497			3.3			45,333			8.2			42,424			7.4			(26,836	)		(59.2	)		(23,927	)		(56.4	)
Inventories, Net		453			14,877			2.7			21,817			4.0			23,862			4.2			(6,940	)		(31.8	)		(8,985	)		(37.7	)
Other Current Assets		237			7,795			1.4			7,029			1.3			8,702			1.5			766			10.9			(907	)		(10.4	)
Total Current Assets		7,687			252,619			45.2			232,349			42.2			249,822			43.7			20,270			8.7			2,797			1.1
Long-Term Investments		1,217			39,982			7.2			41,874			7.6			36,461			6.4			(1,892	)		(4.5	)		3,521			9.7
Property, Plant and Equipment		26,247			862,461			154.3			849,818			154.5			800,352			140.2			12,643			1.5			62,109			7.8
Less: Accumulated Depreciation		(18,832	)		(618,816	)		(110.7	)		(597,523	)		(108.6	)		(540,100	)		(94.6	)		(21,293	)		3.6			(78,716	)		14.6
Property, Plant and Equipment, Net		7,415			243,645			43.6			252,295			45.9			260,252			45.6			(8,650	)		(3.4	)		(16,607	)		(6.4	)
Other Assets		690			22,671			4.0			23,481			4.3			24,330			4.3			(810	)		(3.4	)		(1,659	)		(6.8	)
Total Assets	$	17,009		$	558,917			100.0		$	549,999			100.0		$	570,865			100.0		$	8,918			1.6		($	11,948	)		(2.1	)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$	184		$	6,043			1.1		$	9,671			1.8		$	13,078			2.3			($3,628	)		(37.5	)		($7,035	)		(53.8	)
Payables to Contractors and Equipment Suppliers		244			7,999			1.4			8,082			1.4			6,257			1.1			(83	)		(1.0	)		1,742			27.8
Accrued Expenses and Other Current Liabilities		1,051			34,543			6.2			36,124			6.6			29,090			5.1			(1,581	)		(4.4	)		5,453			18.7
Current Portion of Bonds Payable and Long-Term Liabilities		250			8,222			1.5			8,258			1.5			281			—			(36	)		(0.4	)		7,941			2828.1
Total Current Liabilities		1,729			56,807			10.2			62,135			11.3			48,706			8.5			(5,328	)		(8.6	)		8,101			16.6
Bonds Payable		137			4,500			0.8			4,500			0.8			12,500			2.2			—			—			(8,000	)		(64.0	)
Other Long-Term Liabilities		524			17,237			3.1			17,541			3.2			18,973			3.3			(304	)		(1.7	)		(1,736	)		(9.2	)
Total Liabilities		2,390			78,544			14.1			84,176			15.3			80,179			14.0			(5,632	)		(6.7	)		(1,635	)		(2.0	)
Shareholders’ Equity Attributable to Shareholders of the Parent
Capital Stock at Par Value		7,798			256,254			45.8			259,042			47.1			264,271			46.3			(2,788	)		(1.1	)		(8,017	)		(3.0	)
Capital Surplus		1,518			49,875			8.9			50,463			9.2			53,733			9.4			(588	)		(1.2	)		(3,858	)		(7.2	)
Legal Capital Reserve (2)		2,049			67,324			12.0			67,324			12.2			56,406			9.9			—			—			10,918			19.4
Special Capital Reserve (2)		12			392			0.1			392			0.1			630			0.1			—			—			(238	)		(37.8	)
Unappropriated Earnings (2)		3,114			102,338			18.3			103,063			18.7			161,828			28.3			(725	)		(0.7	)		(59,490	)		(36.8	)
Treasury Stock		—			—			—			(16,500	)		(3.0	)		(49,385	)		(8.7	)		16,500			(100.0	)		49,385			(100.0	)
Others		6			194			0.1			(1,708	)		(0.3	)		(391	)		—			1,902			(111.3	)		585			(149.5	)
Total Equity Attributable to Shareholders of the Parent		14,497			476,377			85.2			462,076			84.0			487,092			85.3			14,301			3.1			(10,715	)		(2.2	)
Minority Interests		122			3,996			0.7			3,747			0.7			3,594			0.7			249			6.6			402			11.2
Total Shareholders’ Equity		14,619			480,373			85.9			465,823			84.7			490,686			86.0			14,550			3.1			(10,313	)		(2.1	)
Total Liabilities & Shareholders’ Equity	$	17,009		$	558,917			100.0		$	549,999			100.0		$	570,865			100.0		$	8,918			1.6			($11,948	)		(2.1	)

Note :
(1)	Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$32.860 as of December 31, 2008.
(2)	Certain prior period balances have been reclassified to conform to the current period presentation.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Consolidated Condensed Income Statements

For the Three Months Ended December 31, 2008, September 30, 2008, December 31, 2007

(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”) ⁽¹⁾

Except for Per Share Amounts and Shares Outstanding)

	4Q 2008									3Q 2008						4Q 2007						QoQ						YoY
	USD			NTD			%			NTD			%			NTD			%			Amount			%			Amount			%
Net Sales	$	1,962		$	64,562			100.0		$	92,979			100.0		$	93,860			100.0		($	28,417	)		(30.6	)	($	29,298	)		(31.2	)
Cost of Sales		(1,348	)		(44,367	)		(68.7	)		(49,885	)		(53.7	)		(49,024	)		(52.2	)		5,518			(11.1	)		4,657			(9.5	)
Gross Profit		614			20,195			31.3			43,094			46.3			44,836			47.8			(22,899	)		(53.1	)		(24,641	)		(55.0	)
Operating Expenses
Research and Development Expenses		(147	)		(4,826	)		(7.5	)		(5,981	)		(6.4	)		(5,012	)		(5.3	)		1,155			(19.3	)		186			(3.7	)
General and Administrative Expenses		(70	)		(2,285	)		(3.5	)		(2,979	)		(3.2	)		(2,039	)		(2.2	)		694			(23.3	)		(246	)		12.1
Sales and Marketing Expenses		(32	)		(1,062	)		(1.7	)		(1,217	)		(1.3	)		(1,027	)		(1.1	)		155			(12.7	)		(35	)		3.4
Total Operating Expenses		(249	)		(8,173	)		(12.7	)		(10,177	)		(10.9	)		(8,078	)		(8.6	)		2,004			(19.7	)		(95	)		1.2
Income from Operations		365			12,022			18.6			32,917			35.4			36,758			39.2			(20,895	)		(63.5	)		(24,736	)		(67.3	)
Non-Operating Income, Net		43			1,412			2.2			1,328			1.4			1,697			1.8			84			6.4			(285	)		(16.8	)
Investment Gains (Loss)		(10	)		(340	)		(0.5	)		185			0.2			877			0.9			(525	)		(283.6	)		(1,217	)		(138.8	)
Income before Income Tax		398			13,094			20.3			34,430			37.0			39,332			41.9			(21,336	)		(62.0	)		(26,238	)		(66.7	)
Income Tax Expenses		(14	)		(452	)		(0.7	)		(3,658	)		(3.9	)		(4,608	)		(4.9	)		3,206			(87.6	)		4,156			(90.2	)
Net Income		384			12,642			19.6			30,772			33.1			34,724			37.0			(18,130	)		(58.9	)		(22,082	)		(63.6	)
Minority Interests		(6	)		(196	)		(0.3	)		(198	)		(0.2	)		(239	)		(0.3	)		2			(1.1	)		43			(18.0	)
Net Income Attributable to Shareholders of the Parent		378			12,446			19.3			30,574			32.9			34,485			36.7			(18,128	)		(59.3	)		(22,039	)		(63.9	)
Earnings per Share — Diluted	$	0.01		$	0.48					$	1.18					$	1.29					($	0.70	)		(59.0	)	($	0.81	)		(62.3	)
Earnings per ADR — Diluted (2)	$	0.07		$	2.43					$	5.91					$	6.44					($	3.48	)		(59.0	)	($	4.01	)		(62.3	)
Weighted Average Outstanding Shares — Diluted (’M) (3)					25,655						25,850						26,773

Note:
(1)	Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD 32.912 for the fourth quarter of 2008.
(2)	1 ADR equals 5 ordinary shares.
(3)	Total diluted weighted average outstanding shares was and 26,773M shares for 4Q07 after the retroactive adjustments for stock dividends and stock bonus.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Year Ended December 31, 2008 and 2007
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)⁽¹⁾
Except for Per Share Amounts and Shares Outstanding)

	For the Year Ended December 31
	2008									2007						YoY
	USD			NTD			%			NTD			%			Amount			%
Net Sales	$	10,608		$	333,158			100.0		$	322,630			100.0		$	10,528			3.3
Cost of Sales		(6,095	)		(191,408	)		(57.5	)		(180,280	)		(55.9	)		(11,128	)		6.2
Gross Profit		4,513			141,750			42.5			142,350			44.1			(600	)		(0.4	)
Operating Expenses
Research and Development Expenses		(684	)		(21,481	)		(6.4	)		(17,946	)		(5.5	)		(3,535	)		19.7
General and Administrative Expenses		(353	)		(11,097	)		(3.3	)		(8,964	)		(2.8	)		(2,133	)		23.8
Sales and Marketing Expenses		(151	)		(4,737	)		(1.4	)		(3,718	)		(1.2	)		(1,019	)		27.4
Total Operating Expenses		(1,188	)		(37,315	)		(11.1	)		(30,628	)		(9.5	)		(6,687	)		21.8
Income from Operations		3,325			104,435			31.4			111,722			34.6			(7,287	)		(6.5	)
Non-Operating Income, Net		202			6,335			1.9			7,412			2.3			(1,077	)		(14.5	)
Investment Gains		22			702			0.2			2,508			0.8			(1,806	)		(72.0	)
Income before Income Tax		3,549			111,472			33.5			121,642			37.7			(10,170	)		(8.4	)
Income Tax Expenses		(348	)		(10,949	)		(3.3	)		(11,710	)		(3.6	)		761			(6.5	)
Net Income		3,201			100,523			30.2			109,932			34.1			(9,409	)		(8.6	)
Minority Interest		(19	)		(590	)		(0.2	)		(755	)		(0.3	)		165			(21.9	)
Net Income Attributable to Shareholders of the Parent		3,182			99,933			30.0			109,177			33.8			(9,244	)		(8.5	)
Earnings per Share — Diluted	$	0.12		$	3.83					$	4.06					($	0.23	)		(5.7	)
Earnings per ADR — Diluted (2)	$	0.61		$	19.14					$	20.30					($	1.16	)		(5.7	)
Weighted Average Outstanding Shares — Diluted (’M) (3)					26,107						26,892

Note:
(1)	Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD 31.406 for the year ended December 31, 2008.
(2)	1 ADR equals 5 ordinary shares.
(3)	Total diluted weighted average outstanding shares were 26,892M shares for the year ended December 31, 2007 after the retroactive adjustments for stock dividends and stock bonus.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Year Ended December 31, 2008 and for the Three Months Ended December 31, 2008, September 30, 2008, and December 31, 2007
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) ⁽¹⁾

	Twelve Months 2008						4Q 2008			3Q 2008			4Q 2007
	(audited)						(unaudited)			(unaudited)			(unaudited)
	USD			NTD			NTD			NTD			NTD
Cash Flows from Operating Activities:
Net Income	$	3,182		$	99,933		$	12,446		$	30,574		$	34,485
Net Income Attributable to Minority Interest		19			590			196			198			239
Depreciation & Amortization		2,595			81,512			20,961			20,686			20,281
Deferred Income Tax		73			2,279			154			410			877
Equity in Loss (Earnings) of Equity Method Investees, Net		(22	)		(702	)		340			(185	)		(877	)
Changes in Working Capital & Others		1,206			37,882			29,147			4,220			4,754
Net Cash Provided by Operating Activities		7,053			221,494			63,244			55,903			59,759
Cash Flows from Investing Activities:
Acquisitions of:
Marketable Financial Instruments		(3,241	)		(101,797	)		(33,059	)		(40,201	)		(32,478	)
Investments Accounted for Using Equity Method		(2	)		(56	)		(1	)		(55	)		6
Property, Plant and Equipment		(1,886	)		(59,223	)		(11,258	)		(10,378	)		(19,781	)
Financial Assets Carried at Cost		(15	)		(463	)		(73	)		(87	)		(103	)
Proceeds from Disposal or Maturity of:
Marketable Financial Instruments		4,908			154,150			63,368			22,126			40,680
Property, Plant and Equipment		6			195			24			140			34
Financial Assets Carried at Cost		6			199			73			—			141
Others		(33	)		(1,047	)		(1,061	)		1,930			(1,160	)
Net Cash Provided by (Used In) Investing Activities		(257	)		(8,042	)		18,013			(26,525	)		(12,661	)
Cash Flows from Financing Activities:
Decrease in Guarantee Deposits		(24	)		(759	)		(140	)		(83	)		(321	)
Proceeds from Exercise of Stock Options		7			227			5			51			35
Bonus Paid to Directors and Supervisors		(6	)		(177	)		—			(177	)		—
Repayment of Long-Term Bonds Payable		—			—			—			—			(4,500	)
Cash Dividends Paid for Common Stock		(2,445	)		(76,779	)		—			(76,779	)		—
Repurchase of Treasury Stock		(1,066	)		(33,481	)		—			(23,812	)		(45,413	)
Cash Bonus Paid to Employees		(125	)		(3,940	)		—			(3,940	)		—
Others		(15	)		(484	)		(163	)		(222	)		90
Net Cash Used in Financing Activities		(3,674	)		(115,393	)		(298	)		(104,962	)		(50,109	)
Net Increase (Decrease) in Cash and Cash Equivalents		3,122			98,059			80,959			(75,584	)		(3,011	)
Effect of Exchange Rate Changes and Others		51			1,569			1,209			2,684			(331	)
Cash and Cash Equivalents at Beginning of Period		3,024			94,986			112,446			185,346			98,328
Cash and Cash Equivalents at End of Period	$	6,197		$	194,614		$	194,614		$	112,446		$	94,986

Note: (1)  Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD 31.406 for the year ended December 31, 2008.

TSMC 2008 Fourth Quarter Investor Conference January 22, 2009

Agenda Welcome Elizabeth Sun 4Q08 Financial Results and 1Q09 Outlook Lora Ho CEO Comments Rick Tsai Q&A Rick Tsai / Lora Ho

Safe Harbor Notice TSMC’s statements of its current expectations are forward- looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. Information as to those factors that could cause actual results to vary can be found in TSMC’s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) on April 15, 2008 and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

4Q08 Financial Highlights (In NT billions except otherwise noted) Guidance Net Sales 93.86 92 — 94 5.5% 25.2% Gross Margin 47.8% 46% — 48% +2 ppt +1.8 ppt Operating Margin 39.2% 37% — 39% +2.8 ppt +2.6 ppt EPS — Diluted (NT$)1.31 14.3% 24.3% Free Cash Flow 39.98 51.9% 12.9% ROE (%) (1) 27.9% +2.9 ppt +5.3 ppt Shipment (Kpcs, 8"-equiv. Wafer) 2,357 5.9% 37.2% QoQ YoY (1) Before expensing of employee profit sharing (2) Total outstanding shares were 25,625mn units on 12/31/08 (3) Annualized ROE for the quarter based on average equity attributable to shareholders of the parent. 4Q08 3Q08 4Q07 (In NT billions except otherwise noted) Guidance Actual Actual(1) Net Sales 64.56 63 — 65 92.98 93.86 -30.6% -31.2% Gross Margin 31.3% 30% — 32% 46.3% 47.8% -15.0 ppt -16.5 ppt Operating Margin 18.6% 17% — 19% 35.4% 39.2% -16.8 ppt -20.6 ppt EPS — Diluted (NT$)(2) 0.48 1.18 1.29 -59.0% -62.3% Free Cash Flow 51.98 45.52 39.98 14.2% 30.0% ROE (%) (3) 10.6% 27.0% 27.9% -16.4 ppt -17.3 ppt Shipment (Kpcs, 8"-equiv. Wafer) 1,532 2,411 2,357 -36.4% -35.0% Average Exchange Rate— NTD/USD 32.91 31.16 32.44 5.6% 1.5% QoQ YoY 4Q08

Income Statements (1) 4Q07 results do not include expensing of employee profit sharing. (In NT billions except otherwise noted) 4Q08 3Q08 4Q07(1) QoQ YoY Net Sales 64.56 92.98 93.86 -30.6% -31.2% Gross Margin 31.3% 46.3% 47.8% -15.0 ppt -16.5 ppt Operating Expenses (8.17) (10.18) (8.08) -19.7% 1.2% Operating Margin 18.6% 35.4% 39.2% -16.8 ppt -20.6 ppt Non-Operating Items 1.41 1.33 1.69 6.4% -16.8% Long-Term Investment Gains (0.34) 0.18 0.88 -283.6% -138.8% Taxes (0.45) (3.66) (4.61) -87.6% -90.2% Net Income 12.45 30.57 34.48 -59.3% -63.9% Net Margin 19.3% 32.9% 36.7% -13.6 ppt -17.4 ppt EPS (NT Dollar) 0.48 1.18 1.29 -59.0% -62.3%

4Q08 Revenue by Applications 0.0 40.0 3Q08 4Q08 Revenue (NT$B) Communications 43% Consumer 19% Computer 32% Industrial/Others 6% QoQ -32% 0.0 40.0 3Q08 4Q08 Revenue (NT$B) QoQ -34% 0.040.03Q08 4Q08 Revenue (NT$B) QoQ -39% Computer Communications Consumer 0.0 40.0 3Q08 4Q08 Revenue (NT$B) Communications 43% Consumer 19% Computer 32% Industrial/Others 6% QoQ -32% 0.0 40.0 3Q08 4Q08 Revenue (NT$B) QoQ -34% 0.0 40.0 3Q08 4Q08 Revenue (NT$B) QoQ -39% Computer Communications Consumer

4Q08 Revenue by Technology 0.11/0.13um 17% 0.15/0.18um 22% 90nm 21% 0.5um+ 3% 0.25/0.35um 10% 65nm 27% 0 5 10 15 20 25 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Revenue (NT$B) 0% 5% 10% 15% 20% 25% 30% % of Sales (%) Rev (NT$B) % of Sales 65nm Revenue 0.11/0.13um 17% 0.15/0.18um 22% 90nm 21% 0.5um+ 3% 0.25/0.35um 10% 65nm 27% 0 5 10 15 20 25 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Revenue (NT$B) 0% 5% 10% 15% 20% 25% 30% % of Sales (%) Rev (NT$B) % of Sales 65nm Revenue

Balance Sheets & Key Indices (1) Asset productivity = Annualized net sales / Average net fixed assets. Selected Items from Balance Sheets (In NT billions excepted otherwise noted) Amount % Amount % Amount % Cash & Marketable Securities 211.45 37.8% 158.17 28.7% 174.83 30.6% Accounts Receivable — Trade 18.50 3.3% 45.33 8.2% 42.42 7.4% Inventory 14.88 2.7% 21.82 4.0% 23.86 4.2% Long-Term Investment 39.98 7.2% 41.87 7.6% 36.46 6.4% Net PP&E 243.65 43.6% 252.29 45.9% 260.25 45.6% Total Assets 558.92 100.0% 550.00 100.0% 570.87 100.0% Current Liabilities 56.81 10.2% 62.13 11.3% 48.71 8.5% Long-Term Interest-bearing Debt 15.22 2.7% 15.15 2.8% 22.78 4.0% Total Liabilities 78.54 14.1% 84.18 15.3% 80.18 14.0% Total Shareholders’ Equity 480.37 85.9% 465.82 84.7% 490.69 86.0% Key Indices A/R Turnover Days Inventory Turnover Days Current Ratio (x) Asset Productivity (x) (1) 4Q08 3Q08 4Q07 46 43 42 40 45 48 4.4 3.7 5.1 1.0 1.4 1.4

Cash Flows (1) Free cash flow = Operating cash flow — Capital expenditures. (In NT billions except otherwise noted) 4Q08 3Q08 4Q07 Beginning Balance 112.45 185.35 98.33 Cash from operating activities 63.24 55.90 59.76 Capital expenditures (11.26) (10.38) (19.78) Cash dividends 0.00 (76.78) 0.00 Share buyback 0.00 (23.81) (45.41) Repayment of corporate bonds 0.00 0.00 (4.50) Short-term investments/others 30.18 (17.83) 6.59 Ending Balance 194.61 112.45 94.99 Free Cash Flow(1) 51.98 45.52 39.98

Installed Capacity 2008 Overall Capacity +13%; Advanced Capacity +27% (1) Figures represent number of 6” wafers. Conversion to 8”-equivalent wafers is obtained by dividing this number by 1.78. (2) Figures represent number of 12” wafers. Conversion to 8”-equivalent wafers is obtained by multiplying this number by 2.25. Fab-2 ( 6”) (1) 248 267 270 272 1,056 274 Fab-3 ( 8”) 277 281 268 274 1,100 286 Fab-5 ( 8”) 163 165 161 161 650 162 Fab-6 ( 8”) 265 267 268 282 1,082 295 Fab-8 ( 8”) 262 275 267 272 1,076 275 Fab-12 ( 12”) (2) 197 207 214 221 840 218 Fab-14 ( 12”) (2) 167 185 229 236 818 238 WaferTech ( 8”) 105 105 106 106 420 106 TSMC (Shanghai) ( 8”) 88 110 128 128 453 128 TSMC & Subsidiaries 2,117 2,236 2,346 2,405 9,104 2,431 (8” Equivalent Kpcs) SSMC ( 8”) 63 67 69 73 272 64 Total TSMC-managed 2,180 2,303 2,416 2,478 9,377 2,495 (8” Equivalent Kpcs) 3Q08 (A) 4Q08 (A) 2008 (A) 2Q08 (A) 1Q08 (A) FAB / (Wafer size) 1Q09 (F)

Capital Expenditures (In US millions) 4Q08 2008 2007 TSMC 326 1,807 2,475 XinTec and GUC 2 23 47 TSMC Shanghai & WaferTech 12 52 31 Other TSMC Subsidiaries 2 4 4 TSMC Consolidated 342 1,886 2,557 Note: 2008 CapEx was based on the weighted average exchange rate of NT$31.406 per US dollar.

2008 Financial Highlights Delivered 7^th consecutive year of top line growth Profitability declined due to employee profit sharing expensing in 2008 Continued cash returned to shareholders Balance sheet strength to weather the financial tsunami ROE > 20% for the 5^th consecutive year (1) 2007 number Includes share buybacks executed in 2007 but settled in 2008. (In NT billions except otherwise noted) Net Sales 333.16 322.63 Gross Margin 42.5% 44.1% Operating Margin 31.4% 34.6% EPS — Diluted (NT$)3.83 4.06 Free Cash Flow (FCF)162.27 99.76 Cash Dividends 76.78 77.39 Share Buybacks(1) 30.43 48.47 Cash & Marketable Securities 211.45 174.83 ROE 20.7% 21.9% 2008 2007

Cash Returned to Shareholders Cumulative NT$361B (US$11.2B) Since 2004 US$0.2B US$1.5B US$1.0B 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2004 2007 2008 Increasing Cash Dividend Increasing Cash Dividend Share Buybacks Share Buybacks NT$3.0 NT$0.6 NT$2.0 NT$2.5 NT$3.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2004 2005 2006 2007 2008 Year Paid Cash Dividend per Share (NT$) Note: 2007 share buyback number Includes shares bought in 2007 but settled in 2008. US$0.2B US$1.5B US$1.0B 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 2004 2007 2008 Increasing Cash Dividend Increasing Cash Dividend Share Buybacks Share Buybacks NT$3.0 NT$0.6 NT$2.0 NT$2.5 NT$3.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2004 2005 2006 2007 2008 Year Paid Cash Dividend per Share (NT$) Note: 2007 share buyback number Includes shares bought in 2007 but settled in 2008.

1Q09 Guidance Revenue is expected to be between NT$32 billion and NT$35 billion, at a forecast exchange rate of 32.66 NT dollars to 1 US dollar averaged over 1Q09. Gross profit margin is expected to be between 1% and 5%. Operating profit margin is expected to be between -19% and -15%.

Recap of Recent Major Events TSMC Wins the Award of “Grand Prix for Best Overall Investor Relations at a Taiwanese Company — Large-Cap” by IR Magazine (2008/12/11) TSMC Chairman Dr. Morris Chang Receives Semiconductor Industry Association’s Highest Honor “The 2008 Robert N. Noyce Award” (2008/11/18) TSMC Ramps 40nm Volume Production to Promote Innovation as Foundries Assume a Larger Role for $300 Billion Industry (2008/11/17) TSMC Board Approves Cancellation of Treasury Shares to Reduce Total Issued Shares by 1.07 Percent (2008/11/11) TSMC Adds New High Voltage Features to Advanced 0.13-micron Processes Aimed at High Resolution Display Drivers (2008/11/05) TSMC and MAPPER Take Next Step in Exploring Multiple E-beam Lithography for IC Manufacturing at 22 nanometer node and Beyond (2008/10/13) * Please visit TSMC’s Web site (http://www.tsmc.com) for details and other announcements.

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