No further U.S. investments mentioned after TSMC board meeting

Taipei, Feb. 12 (CNA) Resolutions of a board meeting held by Taiwan Semiconductor Manufacturing Co. (TSMC) on Wednesday did not mention any further investments in the United States in response to U.S. semiconductor tariffs, defying market expectations.

TSMC, the world's largest contract chipmaker, held a board meeting in the U.S. state of Arizona marking the first time that the company held such a meeting in the United States in its 37-year history.

The move to hold a board meeting in Arizona had stirred up market speculation that the chipmaker would announce more major investments in the United States to avoid massive tariffs on semiconductors.

In Arizona, TSMC is investing US$65 billion to build three advanced wafer fabs with the first of them already in production using the high-end 4 nanometer process.

The second is slated to mass produce wafers using the more sophisticated 3 nm and 2 nm processes in 2028, while the U.S. Department of Commerce said TSMC has pledged the third will use the A16 process, the next generation of the 2nm.

In a statement issued after the board meeting, TSMC said its board members approved capital appropriations of about US$17.14 billion for purposes such as installation and upgrade of advanced technology capacity and sophisticated packaging and mature and specialty technology capacity, and fab construction and installation of fab facility systems.

The capital spending aimed to meet long-term capacity plans based on market demand forecasts, TSMC said.

The TSMC board also approved a plan to inject up to US$10 billion into TSMC Global Ltd., a wholly-owned subsidiary for financial investments, and the investments will be made to reduce foreign exchange hedging costs.

Another plan was approved in the board meeting for the chipmaker to distribute about NT$140.59 billion (US$4.28 billion) as employees' performance bonuses and profit-sharing bonuses.

Out of the bonuses, NT$70.30 billion had been issued to its employees with the remaining scheduled to be distributed in July, TSMC said, adding the amount will hit a new high.

The bonuses were finalized after TSMC reported a new high of NT$1.17 trillion in net profit with earnings per share at NT$45.25, and a record high of NT$2.89 trillion in consolidated sales in 2024. These financial results were also recognized in the board meeting.

In addition, the board meeting has approved a plan to hold an annual general meeting on June 3, TSMC said.

The board meeting also approved a plan in which TSMC will distribute NT$4.50 in cash dividend per share to shareholders for its earnings in the fourth quarter of last year when its EPS stood at NT$14.45. The cash dividend amount remained the same as the previous quarter.

TSMC said the cash payment will be made on July 10 with an ex-dividend date set on June 12.

Based on the latest planned cash dividend payment, TSMC Chairman C.C. Wei (魏哲家) is expected to pocket NT$28.76 million from the 6.39 million TSMC shares he owns.

The National Development Fund under the Executive Yuan, the largest single shareholder of TSMC, is expected to receive NT$7.44 billion in cash dividends as the fund currently owns 1.65 billion shares of the company, or a 6.38 percent stake.

In 2019, TSMC became the first company in Taiwan to start issuing cash dividends on a quarterly instead of an annual basis. Analysts said such a change is expected to make investors more willing to hold onto the stock longer.