Taiwan Semiconductor Manufacturing Co. directors authorized massive capital expenditures and increased shareholder payouts following another quarter of record earnings, underscoring the chipmaker’s confidence despite mounting geopolitical pressures.
The board approved approximately $20.66 billion in capital spending for advanced technology installations, packaging facilities and fab construction. Directors also greenlit up to NT$60 billion ($2 billion) in domestic bond issuances and a $10 billion capital injection into wholly-owned subsidiary TSMC Global, according to a company statement Tuesday.
TSMC declared a NT$5.0 ($0.17) per share cash dividend for the second quarter, representing an 11% increase from the previous quarter’s payout. The dividend reflects second-quarter earnings per share of NT$15.36 on revenue that climbed to NT$933.79 billion ($31.1 billion).
The spending authorization comes as the world’s largest contract chipmaker executes an unprecedented global expansion. The company plans to construct or equip nine facilities this year alone, nearly triple the pace from earlier in the decade. Capital expenditures for 2025 are projected to reach $38 billion to $42 billion, potentially surpassing the previous record of $36.3 billion set in 2022.
However, the expansion faces headwinds. The Taiwan dollar’s 15% appreciation since April has compressed margins, with Chairman C.C. Wei noting that each percentage point of currency strength reduces operating margins by 0.4 percentage points. Trump administration tariff threats add another layer of uncertainty for the Hsinchu-based manufacturer.
The financial commitment signals TSMC’s determination to maintain its technological edge as artificial intelligence applications drive demand for advanced semiconductors. Yet the scale of investment raises questions about returns, particularly as competitors including Samsung and Intel intensify their foundry ambitions.
The December 17 record date for dividend eligibility means shareholders must hold stock through December 11 to receive the January payout.
