Taiwan Semiconductor Manufacturing Co. unveiled plans to spend $17.1 billion on new facilities and equipment upgrades, signaling confidence in future chip demand despite recent market volatility.
The world’s largest contract chipmaker reported net income of NT$1.17 trillion ($37.1 billion) for 2024, leading to a record employee bonus pool of NT$140.6 billion ($4.5 billion). The company will split the rewards between quarterly performance bonuses and profit sharing payouts in July.
TSMC’s board approved a NT$4.50 per share dividend for the fourth quarter, maintaining its commitment to shareholder returns. The company also authorized injecting up to $10 billion into its overseas subsidiary to reduce currency hedging costs, highlighting growing concerns about foreign exchange risks.
The chipmaker served 522 customers last year, producing nearly 12,000 different products across 288 manufacturing processes. While maintaining its technology leadership, TSMC faces increasing competition from Samsung Electronics Co. and Intel Corp., which are rapidly expanding their foundry capabilities.
The massive capital expenditure suggests TSMC is betting on sustained demand for advanced semiconductors, even as questions linger about the pace of artificial intelligence adoption and consumer electronics recovery.
