TSMC Announces $20.7 Billion Capital Investment and Dividend

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced a cash dividend of TWD 5.0 per share for the second quarter of 2025. The ex-dividend date is December 11, 2025, and shareholders who own common stock as of December 17, 2025, will be eligible for the dividend. The company also approved a large capital investment of nearly $20.7 billion to support long-term capacity plans.

Taiwan Semiconductor Manufacturing Company Limited (TSMC) has announced a significant financial move, approving a cash dividend of TWD 5.0 per share for the second quarter of 2025. The ex-dividend date is set for December 11, 2025, with shareholders eligible for the dividend if they own common stock as of December 17, 2025. Additionally, the company has approved a substantial capital investment of nearly $20.7 billion to support long-term capacity plans [1].

The dividend payment is scheduled for January 8, 2026, following the record date of December 17, 2025. For TSMC American Depositary Shares (ADSs), the ex-dividend and record date will also be December 11, 2025. The funds allocated for capital investment will be used to install advanced technology and packaging capacities, mature and/or specialty technology capacities, and construct and install fab facility systems [1].

TSMC's board of directors also authorized the issuance of unsecured corporate bonds in multiple domestic offerings, not exceeding NT$60 billion, to finance capacity expansion and green initiatives. Furthermore, the board approved a capital injection of up to $10 billion into TSMC Global, a wholly-owned subsidiary, aimed at reducing foreign exchange hedging costs [2].

For the six months ended June 30, 2025, TSMC reported net sales of NT$1.77 trillion, gross profit of NT$1.04 trillion, and net income of NT$758.23 billion. Basic earnings per share for the period were NT$29.31. As of June 30, total assets stood at NT$7.01 trillion, with total liabilities of NT$2.39 trillion and equity attributable to shareholders of NT$4.58 trillion [2].

The stock has been rated as a "Moderate Buy" by analysts, with a consensus target price of $258.33, reflecting positive growth expectations in the semiconductor sector. Institutional investors currently own approximately 16.51% of the stock [3].

References:
[1] https://pr.tsmc.com/english/news/3255
[2] https://za.investing.com/news/sec-filings/tsmc-approves-dividend-major-capital-spending-and-bond-issuance-following-board-meeting-93CH-3833302
[3] https://www.marketbeat.com/instant-alerts/filing-eversource-wealth-advisors-llc-sells-1496-shares-of-taiwan-semiconductor-manufacturing-company-ltd-nysetsm-2025-08-16/