Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) board of directors has approved a plan to invest up to ￥18.6 billion (US$177.7 million) to set up a fully owned subsidiary in Japan to expand its 3D semiconductor material research, the company said yesterday.
The subsidiary is to begin operations this year, company spokeswoman Nina Kao (高孟華) said.
The announcement comes amid escalating geographic tensions worldwide, and highlighted TSMC’s strategic importance in global supply chains.
Photo: Ann Wang, Reuters
The Japanese government has reportedly been coaxing TSMC, the world’s largest contract chipmaker, to build a factory in Japan.
Japan-based clients contributed about 5 percent to TSMC’s NT$1.34 trillion (US$47.2 billion) revenue last year, company data showed.
The Nikkei Shimbun on Monday reported that TSMC is planning to invest about ￥20 billion to set up a research and development facility in Ibaraki Prefecture, while also looking at establishing a new company in Japan.
The new facility would focus on advanced semiconductor packaging and testing, the report said, adding that TSMC is considering installing a production line in Japan.
TSMC did not comment on the Nikkei report.
The board yesterday approved capital appropriation of US$11.79 billion for next quarter, which would be used mainly for factory construction, and installing and upgrading advanced technology capacity, as well as research and development, TSMC said.
To finance its capacity expansion and related expenditures on pollution prevention, the board approved a plan to issue local unsecured corporate bonds of up to NT$120 billion, and to act as a guarantor to its subsidiary TSMC Global Ltd’s issuance of US dollar-denominated senior unsecured corporate bonds of up to US$4.5 billion, it said.
The board also approved a proposal to distribute a cash dividend of NT$2.5 per share. That represents about a 45 percent payout ratio based on earnings per share of NT$5.51 during the quarter ending on Dec. 31.
It also approved the payment of performance-based bonuses and profit-sharing rewards of approximately NT$69.51 billion to employees for last year’s work.
Earlier yesterday, TSMC said that its revenue expanded 22.2 percent to NT$126.75 billion last month, compared with NT$103.68 billion a year earlier.
Last month’s revenue was the highest level since September last year.
On a monthly basis, revenue rose 8 percent from NT$117.37 billion.
KEY INDUSTRY: The vice premier discussed a plan to create a non-red drone supply chain by next year, which has been allocated a budget of more than NT$7.2 billion The government has budgeted NT$44.2 billion (US$1.38 billion) to cultivate Taiwan’s uncrewed aerial vehicle (UAV) industry over the next five years, which would make the nation a major player in the industry’s democratic supply chain in the Asia-Pacific region, Premier Cho Jung-tai (卓榮泰) said yesterday. Cho made the remarks during a visit to the facilities of Cub Elecparts Inc (為升電裝). Democratic Progressive Party (DPP) Legislator Chen Su-yueh (陳素月) and Chinese Nationalist Party (KMT) Legislator Hsieh Yi-fong (謝依鳳) also participated in the trip. Cub Elecparts has transitioned from the automotive industry to the defense industry, which is the top priority among the nation’s
SOUTH KOREA DISPUTE: If Seoul continues to ignore its request, Taiwan would change South Korea’s designation on its arrival cards, the foreign ministry said If South Korea does not reply appropriately to a request to correct Taiwan’s name on its e-Arrival card system before March 31, the government would take corresponding measures to change how South Korea is labeled on the online Taiwan Arrival Card system, the Ministry of Foreign Affairs said yesterday. South Korea’s e-Arrival card system lists Taiwan as “China (Taiwan)” in the “point of departure” and “next destination” fields. Taipei has asked Seoul to change the wording. Since March 1, South Koreans who hold government-issued Alien Resident Certificates (ARC) have been identified as from “South Korea” rather than the “Republic of Korea,” the
SUFFICIENT: The president said Taiwan has enough oil for next month, with reserves covering more than 100 days and natural gas enough for 12 to 14 days A restart plan for the Guosheng Nuclear Power Plant in New Taipei City’s Wanli District (萬里) and the Ma-anshan Nuclear Power Plant in Pingtung County’s Hengchun Township (恆春) would be submitted to the Nuclear Safety Commission by the end of the month, President William Lai (賴清德) said yesterday, reversing the government’s policy to abolish nuclear energy. On May 17 last year, Taiwan shut down its last nuclear reactor and became the first non-nuclear nation in East Asia, fulfilling the Democratic Progressive Party (DPP) government’s pledge of a “nuclear-free homeland.” Even without nuclear power, Taiwan can maintain a stable electricity supply until 2032,
‘UNFRIENDLY’: Changing the nationality listing of Taiwanese residents to ‘China’ goes against EU foreign policy as well as democratic and human rights principles, MOFA said Taiwan yesterday called on Denmark to correct its designation of the nationality of Taiwanese residents as “China” or face retaliatory measures. The Danish government in 2024 changed the nationality of Taiwanese citizens on their residence permits from “Taiwan” to “China.” The decision goes against EU foreign policy and contravenes democratic and human rights principles, Ministry of Foreign Affairs (MOFA) spokesman Hsiao Kuang-wei (蕭光偉) said. Denmark should present a solution acceptable to Taiwan as soon as possible and correct the erroneous designation to preserve the longstanding friendship between the two nations, Hsiao said. The issue could damage Denmark’s image and business reputation in Taiwan,
RSS