TSMC raises cash dividend payout on Q3 earnings

Taipei, Nov. 12 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) has increased its cash dividend to NT$6 (US$0.19) per share on its third quarter earnings, a move analysts described as an attempt to make its shares more attractive.

In a statement, the world's largest contract chipmaker said its board of directors approved a proposal to provide a cash dividend of NT$6 per share after posting a record high net profit of NT$452.3 billion, or NT$17.4 earnings per share, in the third quarter.

The NT$6 payout is up from NT$5 for its second quarter earnings.

TSMC said the ex-dividend date is set for March 17, 2026, with dividends to be paid on April 9.

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

TSMC Chairman C.C. Wei (魏哲家) is expected to receive NT$43.30 million in dividends for the quarter from the 7.22 million shares he owns.

The National Development Fund, TSMC's largest shareholder with a 6.38 percent stake, is set to receive NT$9.92 billion in cash dividends for the quarter.

Meanwhile, the board also approved a capital appropriation plan of about US$14.98 billion at the board meeting held Tuesday, TSMC said.

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

The funds will also support investment in research and development and sustain capital expenditure.