TSMC Greenlights $29.44 Billion Expansion Amid AI Surge

Taiwan Semiconductor Manufacturing Co. (TSMC) commits to a $29.44 billion capital budget for expansion, propelled by the AI boom. The decision, made during a two-day board meeting, aligns with increased global demand for AI and 5G applications. The capital will fund advanced technology installations and new fabs construction.

Taiwan Semiconductor Manufacturing Co. (TSMC) has approved a capital budget of approximately $29.44 billion, aimed at expanding its capacity amidst a burgeoning artificial intelligence sector. According to Focus Taiwan, this decision was finalized during a two-day board meeting, signaling the chipmaker's commitment to long-term growth as outlined in its market demand and technology roadmap.

The approved budget is designed to accommodate various needs, including the deployment of advanced technology and the construction of new fabrication plants. This move follows a mid-July investor conference where TSMC updated its 2026 capital expenditure projections to between $60 billion and $64 billion, a significant increase from the earlier range of $52 billion to $56 billion set in April.

TSMC attributes its budget expansion to robust global demand for technologies like 5G, AI, and high-performance computing devices. Concurrently, the company has announced a second-quarter cash dividend of NT$7.0 per share, maintaining the payout from Q1. The ex-dividend date is set for December 10 with payout distribution planned for January 7, 2027. Major shareholders, including Chairman C.C. Wei and the National Development Fund, anticipate substantial dividends.