TSM To Raise $575M Via Debt To Counter Chip Crisis: Bloomberg

Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) is set to sell local currency bonds in Taiwan to raise its spending capacity amidst the semiconductor chip crisis. The company intends to raise $575 million (NT$16 billion) in a debt offering in three parts via auction, Bloomberg reports. The issuance amount is subjected to changes.
The recent rise in global corporate bond yields could act as a dampener for the offering.
Recently Taiwan Economic Minister Wang Mei-Hua assured support to the U.S. as the latter reached out to tackle the auto chip crisis. TSM disclosed its plans to raise its capital expenditure to $28 billion to solve the crisis, including a $12 billion plant in Arizona. It led to the approval of NT$120 billion debt offering and dollar note issuance guarantee up to $4.5 billion.
The initiative could not have been more appropriately timed, considering the key component crisis plaguing everything from smartphones, televisions, and cars.
Price action: TSM shares are down 0.88% at $131.23 on the last check Thursday.
Related News: Biden Seeks $37B In Congressional Funding To Counter Chip Crisis: Reuters