TSMC approves expansion budget of more than US$9 billion

06/10/2021 12:02 PM
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Taipei, June 10 (CNA) Taiwan Semiconductor Manufacturing Co, (TSMC), the world's largest contract chipmaker, said on Wednesday that a board meeting held that day approved a proposal for the company to spend more than US$9 billion in capital appropriations to expand production.

In a statement, TSMC said after receiving approval from the board the company will assign a US$9.29 billion capital budget for the construction and installation of new wafer fab facilities, the upgrade of production technologies as well as research and development in the third quarter.

At an investor conference held in mid-April, TSMC said it was planning to spend a record high US$30 billion in capital expenditure in 2021, an increase from an earlier proposal of US$25 billion to US$28 billion, in the wake of strong global demand for emerging technologies such as high performance computing devices and 5G applications.

In addition to boosting production through the advanced 5 Nanometer process, the latest technology the chipmaker has mass produced since the second quarter of last year, TSMC also aims to raise production of specialty technologies by 12 percent this year through the record high capex.

The massive capex will also be used to build a more sophisticated 3nm process wafer plant in Tainan, the 8th phase of a fab in the Hsinchu Science Park for R&D, and an advanced integrated circuit packaging and testing plant in Zhunan, Miaoli County, according to TSMC.

TSMC said it has rescheduled an annual general meeting for July 26 from June 8 to comply with requests from the health authorities to avoid large crowds at a time when Taiwan has intensified its efforts to contain a surge in domestically-transmitted COVID-19 cases under a nationwide Level 3 alert, which is just short of a complete lockdown.

In addition, the board meeting also approved a proposal to issue NT$2.75 in cash dividends per share for its earnings in the first quarter, beating the NT$2.5 in each of the previous seven quarters.

The payout date for the quarterly cash dividend is set for Oct. 14, according to TSMC.

TSMC shareholders approved a proposal in 2018 to issue cash dividends on a quarterly basis instead of annually starting in 2019, making it the first company listed on Taiwan's stock market to do so.

(By Chang Chien-chung and Frances Huang)

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