Taiwan Semiconductor Manufacturing Co. (TSMC) (2330.TW) approved a $31.28bn capital budget for production expansion to meet demand during the current AI boom, the company said on May 12, according to Focus Taiwan.
The world's largest contract chipmaker approved the appropriation for installing advanced technology capacity and fab construction during a board meeting on Tuesday.
This aggressive capital injection underscores Taiwan’s central role in the global AI arms race. TSMC is moving to solidify its monopoly on advanced nodes required for next-generation silicon while facing geopolitical pressure to diversify its manufacturing footprint.
TSMC forecast its 2026 capital expenditure will hit the high end of a $52bn–$56bn range, the company reported at a mid-April investor conference. The spending responds to robust demand for 5G, AI, and high-performance computing (HPC) applications.
The board also approved spending up to $20bn to invest in its wholly owned subsidiary TSMC Arizona.
TSMC raised its cash dividend payout to TWD7 per share on first-quarter earnings, up from TWD6 in the previous quarter. The company reported a record quarterly high of TWD22.08 in earnings per share for 1Q26.
Analysts say the higher dividend makes shares more attractive as they hit new highs driven by AI optimism. TSMC shares have soared more than 28% since early April. The stock closed at TWD2,255.00 on May 12.
The ex-dividend date is September 16, with the TWD7 payout slated for October 8. TSMC began issuing quarterly dividends in 2019.
Chairman C.C. Wei, who holds 7.45mn shares, will receive TWD52.16mn ($1.65mn) in October. The National Development Fund, the largest shareholder with 1.65bn shares, will receive TWD11.58bn ($367.21mn).
© 2026 bne IntelliNews, source Magazine