Thu, Feb 15, 2018 - Page 12 News List

TSMC offers cash dividend of NT$8 on yearly earnings

Staff writer, with CNA

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has proposed to issue a cash dividend of NT$8 per share on last year’s earnings, in line with market expectations.

The board of directors of the world’s largest contract chipmaker on Tuesday voted to approve the dividend proposal and are to submit the plan to shareholders at the company’s annual general meeting scheduled for June 5.

The proposal, which is higher than the NT$7 per share TSMC distributed on its 2016 earnings, reflects the company’s record-high sales and profits last year that were driven by solid demand for its high-end processes.

TSMC’s consolidated sales rose 3.1 percent year-on-year to NT$977.4 billion (US$33.31 billion) and its net profit grew 2.6 percent to NT$343.1 billion. Earnings per share were NT$13.23, compared with NT$12.89 in 2016.

Based on TSMC’s Monday closing price of NT$236.5, its dividend yield would be about 3.38 percent, well above time deposit rates in Taiwan.

If shareholders back the dividend proposal, TSMC would distribute more than NT$207 billion in cash dividends in July.

TSMC chairman Morris Chang (張忠謀), who is to retire in June, is expected to pocket about NT$1 billion in dividends as he owns about 125 million TSMC shares, or a 0.48 percent stake.

The National Development Fund, which is one of the largest single shareholders of TSMC, is expected to receive about NT$13.23 billion on its 6.38 percent stake.

TSMC directors also approved a proposal to dole out NT$46.04 billion in bonuses to TSMC’s 43,000 employees, with an average pay of NT$1.07 million per employee.

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