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Taiwan Semiconductor Manufacturing Co. (TSMC) approved a USD 44.96 billion capital budget on Tuesday to expand its advanced and speciality technology capacity amid a global surge in demand for artificial intelligence.
The decision, made during the company's first-ever board meeting in Kumamoto, Japan, allocates funds to upgrade advanced packaging, construct new fabrication plants, and install essential facility systems. As per a report by Focus Taiwan, the massive appropriation ensures the chipmaker can fulfil its long-term technology roadmap. The company stated that the funding targets the installation and upgrade of advanced, mature, and speciality technology capacity to meet rising global requirements. In a meeting with Japanese Prime Minister Sanae Takaichi last week, TSMC CEO CC Wei said that 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 further approved a record-breaking distribution of employee business performance bonuses and profit-sharing totalling approximately NT$206.15 billion (approx. USD 6.53 billion) for 2025. This figure represents a 46.62 per cent increase compared to the NT$140.5 billion (approx. USD 4.45 billion) approved for the previous year. The company noted in a statement that the payout "setting a record high for the second consecutive year" reflects how the firm capitalises on the global AI boom. Half of this total was distributed quarterly throughout 2025, while the remaining profit-sharing portion is scheduled for distribution in July 2026. With a headcount of approximately 78,000 employees in Taiwan, the average payout per person is expected to exceed NT$2.64 million (approx. USD 83,580). This is a significant rise from the NT$2 million (USD 63,320) recorded in 2024, signalling heightened profitability for the world's largest contract chipmaker. "The board also approved its 2025 business report and financial statements, which showed consolidation revenue for the year totalled NT$3.81 trillion, with net income reaching NT$1.72 trillion and diluted earnings per share of NT$66.25," the Focus Taiwan report said. In addition to capital investments and employee compensation, the board approved a cash dividend of NT$6.0 (approx. USD 0.19) per share for the fourth quarter of 2025. Shareholders are set to see the ex-dividend date on June 11, with payments scheduled for July 9. (ANI)
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