tsmc defies tariff tensions with steady dividend
Hsinchu, Wednesday, 12 February 2025.
tsmc has announced its decision to maintain a quarterly dividend of NT$4.5 per share, despite growing concerns over potential new tariffs from the US. This decision comes amid ongoing geopolitical tensions and discussions surrounding possible shifts in manufacturing strategies. The move is seen as an effort to reassure investors about the company’s stability and commitment to its stakeholders. While the semiconductor giant faces uncertainty from US trade policies, it remains committed to navigating these challenges. The decision underscores tsmc’s confidence in maintaining its strong financial position in an unpredictable market landscape.
Dividend details and financial performance
TSMC’s board approved a quarterly dividend of NT$4.5 per share, maintaining its previous payout level [1]. The company reported strong financial results for 2024, with a consolidated revenue of NT$2.89 trillion and net income of NT$1.17 trillion [1]. The dividend payment is scheduled for July 10, 2025, with an ex-dividend date of June 12, 2025 [1].
Strategic response to US pressure
In a historic move, TSMC held its board meeting in Arizona, marking the first time in its 37-year history that the board has convened in the United States [4]. This decision comes as the company faces potential 100% tariffs threatened by former President Trump [3]. TSMC currently operates three planned facilities in Arizona, scheduled for completion in 2025, 2028, and 2030 [4].
Manufacturing expansion and investment
The board approved a capital budget of US$17.14 billion for advanced manufacturing capacity expansion [1]. TSMC’s Arizona facility is approaching production readiness, with initial plans to manufacture 4nm chips for Apple’s A16 Bionic processors [4]. The company has received US$6.6 billion in subsidies from the US Commerce Department under the CHIPS Act [3].
Market response and stock performance
TSMC’s stock currently trades at US$208.74 on the NYSE, with a market capitalization of US$1.08 trillion [10]. The company maintains a price-to-earnings ratio of 32.47 and offers a dividend yield of 1.09% [10]. Despite geopolitical tensions, TSMC’s steady dividend policy signals confidence in its business model and financial stability [GPT].