tsmc announces dividend and massive capital expenditure

2025-08-12 tsmc

taipei, Tuesday, 12 August 2025.
tsmc’s board greenlit a nt$5 per share dividend for q2 2025, mirroring the previous quarter’s payout. the ex-dividend date is december 11th. significantly, a capital expenditure of nt$619.8 billion got the nod, fueling future growth and capacity. this move underscores tsmc’s robust financials. it highlights their dedication to rewarding shareholders. it also shows a commitment to large-scale, capital-intensive endeavors. the approved expenditure will support advanced processes, packaging, and facility construction.

financial highlights

the board also approved the q2 2025 financial report [1]. consolidated revenue reached approximately nt$933.79 billion [1][7]. net income after tax totaled around nt$398.27 billion, translating to earnings per share of nt$15.36 [1][7]. these figures reflect tsmc’s strong performance across several sectors. growth was seen in high-performance computing, smartphones, iot, and consumer electronics [7]. the dividend distribution is scheduled with a record date of december 17th, 2025, and payout on january 8th, 2026 [7].

strategic capacity investments

the substantial capital expenditure demonstrates tsmc’s forward-looking strategy [1]. a significant portion of this investment will enhance advanced process technologies [6]. it will also expand advanced packaging solutions [6]. facility construction will also be supported [6]. to support these investments, tsmc plans to issue unsecured corporate bonds in the domestic market. the bond issuance will not exceed nt$60 billion [1]. tsmc is also increasing the capital of its wholly-owned subsidiary, tsmc global, by up to us$10 billion [1]. this is intended to lower foreign exchange hedging costs [1].

market leadership and stock implications

tsmc’s moves have significant implications for its market position [GPT]. the company’s ongoing investments in r&d and capacity solidify its dominance [3][6]. the dividend announcement provides immediate shareholder value [1]. analysts view these capital expenditures as a sign of confidence. they signal confidence in future demand for advanced semiconductors [GPT]. tsmc’s strategy of quarterly dividend payouts, initiated in q3 2019, has seen consistent success [2]. most dividend payouts are filled rapidly, often on the same day [2]. this consistency enhances investor confidence [2].

rationalizing production

tsmc is streamlining its operations alongside these major investments [7]. the company will discontinue its 6-inch wafer production by the end of q1 2026 [7]. this decision came after a strategic review [7]. 6-inch wafers are used for older technologies [7]. this shift allows tsmc to focus on advanced manufacturing processes. it optimizes resource allocation [7]. the discontinuation aligns with market trends favoring more advanced semiconductors [GPT].

Bronnen

tsmc dividend capital expenditure