tsmc offloads equipment to world advanced in multi-million dollar deal
taipei, Tuesday, 13 May 2025.
tsmc is selling equipment, valued between $71 million and $73 million, to World Advanced’s Singapore plant. The sale, announced today, aims to optimize tsmc’s resource allocation. World Advanced will use the equipment to expand its 12-inch wafer production. The equipment will support 130 to 40 nanometer processes. World Advanced’s new wafer fab is slated to begin mass production in 2027 and is expected to create 1,500 jobs by 2029 with a monthly capacity of 55,000 wafers.
Asset revitalization and capacity expansion
TSMC’s decision to sell the equipment aligns with its strategy to revitalize assets by disposing of machinery no longer planned for use [1][2]. World Advanced’s CFO, Huang Huilan, stated that this purchase supports the construction of their 12-inch wafer production capabilities, specifically for 130-nanometer to 40-nanometer processes [1]. This expansion allows World Advanced to produce mixed-signal, power management, and analog products [2]. The collaboration between TSMC and World Advanced highlights a strategic alignment within the semiconductor industry, optimizing resource allocation and expanding production capacity [1].
Financial implications for tsmc
The sale is projected to generate a disposal profit for TSMC, estimated between $21.9 million and $23.9 million [7]. While the sale itself represents a relatively small portion of TSMC’s overall financials, it underscores the company’s proactive approach to asset management [1][2]. TSMC’s board also approved a capital budget of approximately $15.248 billion for long-term capacity planning, including advanced process technologies and facility construction [3]. This move signals TSMC’s commitment to maintaining its competitive edge through continuous investment in leading-edge manufacturing capabilities [3][5].
Broader market impact and strategic moves
An industry analyst noted that this sale indicates VSMC’s aggressive expansion plans and TSMC’s strategic realignment [1]. TSMC’s first quarter earnings for 2025 showed a consolidated revenue of approximately NT$839.25 billion, with a net profit of NT$361.56 billion and earnings per share of NT$13.94 [3][4]. Furthermore, TSMC approved a cash dividend of NT$5 per share for the first quarter of 2025 [3][5]. These financial results, coupled with the capital expenditure plans, reflect TSMC’s strong market position and future growth strategy [4].
Executive changes at tsmc
TSMC’s board of directors also approved key executive appointments effective August 16, 2025 [5][7]. Ms.翁铭莉, the current accounting manager, will be appointed as the audit manager, succeeding Mr. 梁立凡, who is retiring [5]. Mr. 陈志和 will take over as the accounting manager [5]. These changes in leadership roles reflect TSMC’s ongoing efforts to ensure effective management and governance as it continues to navigate the dynamic semiconductor landscape [GPT].