TSMC authorizes a capital investment of US$15.25 billion
Hey there! Let's dig into TSMC's cash dividend plan, as they've upped the ante from last year's payout.
Taiwan Semiconductor Manufacturing Co. (TSMC), the globe's top contract chipmaker, announced a major move on capital expansion plans worth US$15.25 billion. This ambitious plan is to meet the booming demand, with the funds earmarked for advanced tech, packaging capacity, maturing and specialty tech, and fabrication projects.
But what's exciting for shareholders, like TSMC's Chairman and CEO, C.C. Wei, is the board's approval of a proposed NT$5 cash dividend per share. This exceeds the previous NT$4.50 dividend from the fourth quarter of last year. The proposed cash payout is based on their NT$13.94 first-quarter earnings per share.
In other words, Wei, as the owner of 6.83 million shares, will reportedly pocket NT$34.12 million (around US$1.12 million) from this dividend payday. That's quite a chunk of change!
But wait, there's more! The state-run National Development Fund, TSMC's biggest shareholder, is set to receive NT$8.27 billion in cash dividends, thanks to their massive 1.65 billion-share stake (or about 6.38% of the company).
Fun fact: TSMC broke new ground in 2019 by opting for quarterly cash dividends instead of yearly, and analysts say this change keeps investors interested in their stock for the long haul.
Lastly, the board approved the sale of TSMC equipment, worth US$71 million and US$73 million, to VisionPower Semiconductor Manufacturing Co Pte Ltd, an affiliate subsidiary of Vanguard International Semiconductor Corp.
[1] The dividend hike from NT$4.50 to NT$5 represents an increase in cash payout per share and reflects TSMC’s robust financial performance despite ongoing capital investments.[2] The cash payout to TSMC Chairman C.C. Wei, approximately US$1.12 million, comes from his 6.83 million shares in the company.[3] The National Development Fund's NT$8.27 billion payout from TSMC's dividend distribution demonstrates TSMC's commitment to reward shareholders even when making substantial investments for future growth.
- TSMC's boost in dividend, from NT$4.50 to NT$5 per share, underscores the company's strong financial position in the industry, allowing for investments in future growth while also rewarding its shareholders.
- The redistribution of funds, including NT$8.27 billion to the National Development Fund, signifies TSMC's commitment to both internal growth and support for various business ventures within the finance sector.
