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
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsOfferingsTechMediaBloombergsemiconductors
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!