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Taipei [Taiwan], May 12 (ANI): Taiwan Semiconductor Manufacturing Company (TSMC) has approved a capital budget of USD 31.28 billion to expand production capacity and support long-term growth amid the ongoing global artificial intelligence-driven chip boom, according to a report by Focus Taiwan.
In a statement issued after a board meeting on Tuesday, the world's largest contract chipmaker said the approved capital appropriation plan will be used for installation of advanced technology capacity and construction of fabrication facilities.
The move comes as demand for semiconductors continues to rise sharply due to growing adoption of 5G, AI and high-performance computing applications.
At an investor conference held in mid-April, TSMC had forecast that its capital expenditure for 2026 would likely be at the higher end of the USD 52 billion to USD 56 billion range announced earlier in January.
The company also said its board approved a plan to invest up to USD 20 billion in its wholly owned subsidiary, TSMC Arizona, which manages financial investments related to its US operations.
Apart from expansion plans, TSMC's board also approved an increase in quarterly cash dividend payout to NT$7 (New Taiwan dollar) per share (around USD 0.22) for earnings in the first quarter of this year, compared to NT$6 per share in the previous quarter.
The increased dividend payout came after the company reported a record quarterly earnings per share of NT$22.08 (around USD 0.70) in the first quarter.
Market analysts said the higher dividend payout is aimed at improving dividend yield and making TSMC shares more attractive to investors at a time when optimism surrounding AI-related growth continues to lift technology stocks globally.
According to the report, TSMC shares have surged more than 28 per cent since the beginning of April as global tech stocks rebounded amid concerns over military conflicts in the Middle East.
On Tuesday, TSMC shares closed at NT$2,255.00 (around USD 71.54).
The company has scheduled September 16 as the ex-dividend date, while the dividend payout is expected to be made on October 8.
TSMC shifted from annual dividend payouts to quarterly payouts in 2019.
The report also noted that TSMC Chairman C.C. Wei, who holds 7.45 million shares in the company, is expected to receive NT$52.16 million (around USD 1.65 million) in dividends in October.
Meanwhile, Taiwan's National Development Fund under the Executive Yuan, which is TSMC's largest shareholder with 1.65 billion shares, is expected to receive NT$11.58 billion (around USD 367.51 million) through the dividend payout. (ANI)