Taiwan Semiconductor Commits $15 Billion To Chip Expansion, Approves Dividend

Taiwan Semiconductor Manufacturing Co TSM announced on Tuesday that its board of directors approved $15.25 billion in capital appropriations for long-term expansion to meet growing demand.

The funds will help to install advanced technology and packaging capacity, expand mature and specialty technology, and construct fabs with facility systems.

The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94.

Also Read: Advanced Micro Devices Drops Samsung, Shifts Chip Orders To Taiwan Semiconductor

The board authorized an NT$4.50 dividend per share for the fourth quarter of last year and approved capital appropriations of $17.14 billion to meet long-term capacity plans.

The Taiwanese contract chipmaker stock declined close to 4% year-to-date as President Donald Trump’s tariff policies and semiconductor technology sanctions weighed on the stock.

Taiwan Semiconductor and its semiconductor peers got a boost this week from Beijing and Washington’s deal to temporarily lower tariffs on each other’s products. The agreement will reduce U.S. levies of 145% on most Chinese imports to 30%, while China’s 125% duties on U.S. goods will drop to 10% for 90 days.

Reportedly, the Trump administration also plans to repeal a key Biden-era export restriction on AI chips.

Last week, Wedbush analyst Daniel Ives highlighted investor concerns over the 145% “black cloud” China tariffs and many restrictions hitting Nvidia Corp NVDA and other tech companies, with the negative ripple impact in the supply chain front and center.

Price Action: TSM stock is up 0.65% to $195.26 at the last check on Wednesday.

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