TSMC approves over US$15.2 billion in capital appropriations

Taipei, May 13 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, announced on Tuesday that its board approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand.

In a statement, TSMC said the funds will be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with necessary facility systems.

TSMC said its board also approved a proposal to issue a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94.

The planned NT$5 cash dividend per share for the first quarter surpasses the NT$4.50 dividend for the fourth quarter of last year.

TSMC has said that while it is eager to expand overseas, its investments will not impact cash dividend payouts.

The company said that the ex-dividend date is set for Sept. 16, with dividends to be paid on Oct.22.

TSMC Chairman C.C. Wei (魏哲家) is expected to receive NT$34.12 million from the 6.83 million shares he owns.

The National Development Fund, TSMC's largest shareholder, is set to receive NT$8.27 billion in cash dividends, holding 1.65 billion shares, or a 6.38 percent stake.

In 2019, TSMC became the first Taiwanese company to issue quarterly cash dividends instead of annually. Analysts believe this change encourages investors to hold the stock longer.

The board also approved a plan to sell TSMC equipment worth between US$71 million and US$73 million to VisionPower Semiconductor Manufacturing Co., a subsidiary of TSMC's affiliate.