Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has announced the approval of US$15.25 billion in capital appropriations, aimed at long-term expansion to address the increasing demand for semiconductors.

According to Focus Taiwan, TSMC stated that the capital will be invested in installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing new fabs equipped with necessary facility systems. The board also approved a NT$5 cash dividend per share, based on first-quarter earnings of NT$13.94 per share. This dividend surpasses the NT$4.50 per share distributed for the fourth quarter of the previous year.

TSMC emphasized that its overseas expansion plans will not affect its cash dividend payouts. The ex-dividend date is scheduled for September 16, with the dividends to be distributed on October 22. TSMC Chairman C.C. Wei is expected to receive NT$34.12 million from his 6.83 million shares. The National Development Fund, TSMC's largest shareholder, will receive NT$8.27 billion in cash dividends from its 1.65 billion shares, representing a 6.38 percent stake in the company.

In a strategic move in 2019, TSMC became the first Taiwanese company to issue quarterly cash dividends instead of annual payouts, a change that analysts believe encourages investors to retain their shares longer. Additionally, the board has approved a plan to sell TSMC equipment valued between US$71 million and US$73 million to VisionPower Semiconductor Manufacturing Co., a subsidiary of TSMC's affiliate.