Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) board of directors yesterday approved a US$44.96 billion capital budget to bolster advanced and specialty technology capacity, upgrade advanced packaging, and fund fab construction.
The funding targets the installation and upgrade of advanced, mature and specialty technology capacity as well as advanced packaging, while also supporting the construction of new fabrication plants and the installation of essential facility systems.
The company said in a statement that the appropriation ensures it can fulfill its long-term technology roadmap and meet rising global demand, following the company’s first-ever board meeting in Japan’s Kumamoto Prefecture.
Photo: Ritchie B. Tongo, EPA
In a meeting with Japanese Prime Minister Sanae Takaichi last week, TSMC CEO C.C. Wei (魏哲家) said the company plans to upgrade its second facility in Kumamoto to produce 3-nanometer chips to meet surging global demand for AI applications
The board also approved the distribution of employee business performance bonuses and profit-sharing totaling approximately NT$206.15 billion (US$6.54 billion) for last year.
This figure represents a 46.62 percent increase compared to the NT$140.5 billion approved for 2024, setting a record high for the second consecutive year, as the company capitalizes on the global AI boom, according to the statement.
Of that total, a business performance bonus of NT $103.07 billion was distributed following each quarter of last year, and profit sharing of NT$103.07 billion will be distributed in July this year, the company said.
With an estimated headcount of 78,000 employees in Taiwan as of late last year, the average payout per person is expected to exceed NT$2.64 million, compared to NT$2 million recorded in 2024, reflecting the company’s heightened profitability.
The board also approved last year’s business report and financial statements, which showed consolidation revenue for the year totaled NT$3.81 trillion, with net income reaching NT$1.72 trillion and diluted earnings per share of NT$66.25.
In terms of shareholder returns, the board approved a cash dividend of NT$6.0 per share for the fourth quarter of last year. The ex-dividend date is scheduled for June 11 with the payment slated for July 9.
Earlier yesterday, TSMC reported consolidated sales of NT$401.26 billion (US$12.71 billion) for last month, hitting a record high and rising 36.8 percent from a year earlier.
Analysts said the strong performance was driven by robust demand for chips produced using TSMC’s advanced 3-nanometer process, which are widely used in AI accelerators. The demand pushed monthly revenue above NT$400 billion for the first time.
After the strong performance last month, analysts said monthly sales this month and next month could ease to between NT$346.1 billion and NT$365.0 billion.
At an earnings conference last month, TSMC forecast first-quarter sales of between US$34.6 billion and US$35.8 billion. The company used an exchange rate of NT$31.6 per US dollar for the forecast, implying first-quarter sales of NT$1.09 trillion to NT$1.13 trillion.
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