TSMC and Kodak Sign License Agreement for CMOS Image Sensors; Key KODAK Technologies Expand TSMC Capabilities, Allow Manufacture of Next-Generation CMOS Image Sensors for Consumer Markets.

HSIN-CHU, Taiwan -- Taiwan Semiconductor Manufacturing Company Limited (TSMC) (NYSE:TSM)(TSE:2330) and Eastman Kodak Company have signed a technology licensing agreement that enables the manufacture of a new generation of high-quality CMOS image sensor (CIS) devices. The agreement is part of Kodak's strategy to leverage its core intellectual property into mass-market consumer imaging applications, and enhances TSMC's position as the largest CIS manufacturing foundry by providing support for new technologies to meet the growing demands for the fast-growing consumer markets such as digital still cameras and mobile phones.

Under the agreement, TSMC extends its industry leadership in the manufacture of CIS devices with the inclusion of a number of key proprietary KODAK technologies, including four-transistor (4T) pixel and pinned photo-diode pixel architectures. These technologies are fundamental to the development of a new generation of CIS devices that provide improved image quality, performance and resolution, and enable the manufacture of CIS pixels that approach the size of the smallest charged-coupled device (CCD) pixels offered today. The CIS manufacturing process licensed under this agreement will be utilized by Kodak as well as other sensor design firms under the terms of the agreement. TSMC is the largest foundry provider of CIS products to many IDMs and fabless companies worldwide.

"As the leading foundry for CMOS image sensors, TSMC is committed to providing the most advanced CIS technology for our customers," said Ken Chen, Director of Mainstream Technology Marketing at TSMC. "This agreement with Kodak will allow TSMC to continue our leadership position in CIS by supporting manufacture of the most advanced, state-of-the-art CIS designs, and to provide a licensed manufacturing platform to all CIS design companies to meet the growing industry demands for image sensors used in digital camera and mobile imaging applications."

"This agreement further expands Kodak's ability to meet the exploding demand for CIS devices used in consumer imaging applications," said Chris McNiffe, General Manager of Kodak's Image Sensor Solutions business. "Our agreement with TSMC augments our existing manufacturing agreements, and again demonstrates Kodak's commitment to execute its digital strategy. We are excited to be working with TSMC to support the manufacture of CIS designs that utilize Kodak's core IP."

About TSMC

TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry industry's largest portfolio of process-proven library, IP, design tools and reference flows. The company operates two advanced 300mm wafer fabs, five eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at its wholly-owned subsidiary, WaferTech and TSMC (Shanghai), and its joint venture fab, SSMC. In early 2001, TSMC became the first IC manufacturer to announce a 90-nm technology alignment program with its customers. TSMC's corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please see http://www.tsmc.com.