TSMC Approves USD11.8bn Capital Distribution Plan

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Taiwan Semiconductor Manufacturing Company (TSMC) [TSM:US] announced through its official website that the company’s board of directors has approved a capital distribution plan worth USD11.8bn, as reported by Techweb on February 22. Specifically, the USD11.8bn worth of capital will mainly be used for five purposes, including the fab construction and installation of fab equipment system, advanced process equipment, mature and special process equipment, advanced packaging equipment, as well as R&D expenses in 2Q21. In TSMC’s 4Q20 earnings report, the firm expects its 2021 capital spending to reach USD25bn to USD28bn.

In May 2020, TSMC announced plans to spend USD3.5bn on building a factory in the US to produce 5nm chips. The plant will be based in Arizona, beginning construction in 2021. The new US production facility is scheduled to start manufacturing in 2024 and produce 20,000 wafers a month. TSMC plans to spend USD12bn, including capital expenditures, on the plant between 2021 and 2029. In addition, earlier this month, TSMC reportedly was considering investing JPY20bn (around USD189m) to set up a research and development center in the Ibaraki Prefecture, a region near Tokyo. The new development center will carry out packaging and testing of advanced semiconductors, while TSMC is also considering building production lines in Japan.

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Semiconductors & Semiconductor Equipment