TSMC Approves $15.48B for New Fabs and Advanced Capacity

The Board of Directors at TSMC has approved an investment of approximately $15.48 billion USD. This allocation will primarily support the construction of new semiconductor fabs, the installation of fab facility systems, and the deployment of advanced process node capacity to meet growing market demands.

The approved capital investment also covers additional purposes, including research and development (R&D) capital expenditures for 2025, ongoing capital expenditures, and capitalized lease assets for the following year. According to TSMC, all these investments align with long-term capacity plans based on market forecasts and TSMC's technology roadmap.

In addition, TSMC's Board of Directors has authorized the issuance of unsecured corporate bonds, not exceeding 60 billion NTD (approximately $1.85 billion USD), to fund the company's capacity expansion and/or pollution control initiatives.

The Board also approved a cash dividend of NTD 4.50 per share for Q3 2024. TSMC reported a net profit of NTD 325.26 billion, equating to diluted earnings per share of NTD 12.54, with total consolidated revenue of NTD 759.69 billion.

For Q3 2024, TSMC's revenue and profit margin exceeded the guidance provided three months ago. The company expects a 13% sequential growth in revenue for Q4 2024, in USD terms.

To address strong demand driven by artificial intelligence (AI) applications, TSMC anticipates its capital expenditures in 2024 will slightly surpass $30 billion USD. The company expects an increase in capital spending in 2025, compared to the current year.