TSMC increases quarterly dividend

Staff reporter, Hsinchu; Jessie Shen, DIGITIMES Asia 0


TSMC decided to raise its quarterly dividend to NT$3 (US$0.10) a share, up from NT$2.75 that had been in place since 2021.

TSMC's board of directors on May 9 approved the distribution of a NT$3.00 per share cash dividend for the first quarter of 2023. The pure-play foundry reported net profits fell 30% sequentially to NT$206.99 billion in the first quarter, with EPS coming to NT$7.98, when revenue decreased 18.7% on quarter to NT$508.63 billion.

It is worth noting that since the first quarter of 2021, TSMC has kept its quarterly dividend at NT$2.75 per share.

Minority shareholders questioned whether the quarterly dividend of TSMC could be increased to NT$3 at the company's 2022 shareholders meeting. At the time, TSMC chairman Mark Liu stated that because the company is entering a rapid expansion phase, substantial investments are necessary to maintain technological leadership and expand production capacity. However, the dividend may increase if TSMC has to limit its expansion and reduce capital expenditures.

During its most recent earnings conference call, TSMC reiterated its 2023 capex forecast of between US$32 billion and US$36 billion, but lowered its full-year revenue growth outlook, as well as its global foundry and semiconductor market growth projections.

Other resolutions approved by TSMC's board of directors on May 9 include a budget of about US$366.1 million for the purpose of fab construction and installation of fab facility systems; the issuance of up to NT$60 billion in unsecured corporate bonds in Taiwan to finance the company's capacity expansion and/or pollution prevention-related expenditures; and the promotion of Fab 18A senior fab director Ray Chuang to vice president.

TSMC's Fab 18A, which is dedicated to chip fabrication using the foundry's 5/4nm process technology, has already increased its share of total wafer revenue to 31% in the first quarter of 2023 from 20% a year ago.