Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) board of directors has approved a plan to set up a wholly owned US subsidiary in Arizona with paid-in capital of US$3.5 billion.
Yesterday’s announcement confirms that TSMC would fulfill its commitment and proceed with a US$12 billion investment to build a new fab in the US.
TSMC in May said that it was in talks with the US central and local governments to secure incentives to narrow the manufacturing cost gap between Taiwan and the US.
Photo: Ann Wang, Reuters
The chipmaker plans to make 5-nanometer chips by 2024 at the fab, which would be its first 12-inch fab overseas.
The Hsinchu-based chipmaker yesterday also said its board of directors has approved to distribute a cash dividend of NT$2.5 per common share for the third quarter of this year and set March 23 as the record date for common stock shareholders entitled to participate in this cash dividend distribution.
The board also approved capital appropriation of about US$15.1 billion for capacity expansion of advanced technology and specialty technology, the company said in a statement.
The capital would also be spent on upgrading wafer packaging capacity as well as research and development.
The chipmaker said revenue last month dropped 6.5 percent to NT$119.30 billion (US$4.13 billion), compared with NT$127.59 billion in September. On an annual basis, revenue expanded 12.5 percent from NT$106.04 billion.
In the first 10 months of this year, TSMC’s revenue soared 27.7 percent to NT$1.1 trillion from NT$858.79 billion a year earlier.
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