TSMC Approves US$44.96 Billion Budget Amid AI Boom

Why It Matters

The massive budget underscores TSMC’s role as the supply‑chain backbone for AI chips, reinforcing its market dominance. Higher payouts signal strong profitability and may boost talent retention amid intense industry competition.

Key Takeaways

• $44.96bn budget targets advanced chip capacity expansion.
• Focus on 3nm production in Kumamoto for AI workloads.
• Employee bonuses total $6.54bn, 46% increase YoY.
• Revenue NT$3.81tn; net income NT$1.72tn.
• Dividend NT$6 per share declared for Q4 2025.

Pulse Analysis

The AI surge has turned semiconductor capacity into a strategic imperative, and TSMC’s near‑$45 billion budget reflects that reality. By earmarking funds for both cutting‑edge nodes and mature processes, the company aims to keep pace with cloud providers, automotive OEMs, and hyperscale data centers that are scaling AI workloads. The infusion also supports advanced packaging initiatives, a critical differentiator that enables higher performance‑per‑watt and faster time‑to‑market for system‑in‑package solutions.

A centerpiece of the spending plan is the upgrade of TSMC’s second Kumamoto fab to 3‑nanometer production. This node, already prized for its power efficiency, is essential for training large language models and inference at the edge. The move not only deepens TSMC’s footprint in Japan—a key market for automotive and industrial chips—but also diversifies its geographic risk profile. Advanced packaging upgrades, such as integrated fan‑out and chip‑on‑wafer technologies, will further boost the value proposition for customers seeking heterogeneous integration.

Financially, the board’s decision to distribute US$6.54 billion in bonuses and profit‑sharing signals robust cash flow and confidence in sustained earnings growth. Coupled with a NT$6 per‑share dividend, the package is likely to attract income‑focused investors while reinforcing employee loyalty in a talent‑tight market. With revenue of NT$3.81 trillion and net income of NT$1.72 trillion, TSMC is positioned to fund its expansion without compromising shareholder returns, setting a benchmark for capital allocation in the semiconductor sector.

TSMC approves US$44.96 billion budget amid AI boom

Focus Taiwan · 02 Oct 2026, 09:11 PM · By Chang Chien‑chung and Shih Hsiu‑chuan

Taipei, Feb. 10 (CNA) – Taiwan Semiconductor Manufacturing Co's (TSMC) board of directors on Tuesday approved a US$44.96 billion capital budget to bolster advanced and specialty technology capacity, upgrade advanced packaging, and fund fab construction.

The funding targets the installation and upgrade of advanced, mature and specialty technology capacity as well as advanced packaging, while also supporting the construction of new fabrication plants and the installation of essential facility systems.

The company said in a statement that the appropriation ensures it can fulfill its long‑term technology roadmap and meet rising global demand, following the company's first‑ever board meeting in Kumamoto, Japan.

In a meeting with Japanese Prime Minister Sanae Takaichi last week, TSMC CEO C.C. Wei (魏哲家) said the company plans to upgrade its second facility in Kumamoto to produce 3‑nanometer chips to meet surging global demand for AI applications.

The board also approved the distribution of employee business performance bonuses and profit‑sharing totaling approximately NT$206.15 billion (US$6.54 billion) for 2025. This figure represents a 46.62 percent increase compared to the NT$140.5 billion approved for 2024, setting a record high for the second consecutive year, as the company capitalizes on the global AI boom, according to the statement.

Of that total, a business performance bonus of NT$103.07 billion was distributed following each quarter of 2025, and profit sharing of NT$103.07 billion will be distributed in July 2026, the company said.

With an estimated headcount of 78,000 employees in Taiwan as of late 2025, the average payout per person is expected to exceed NT$2.64 million, compared to NT$2 million recorded in 2024, reflecting the company's heightened profitability.

The board also approved its 2025 business report and financial statements, which showed consolidated revenue for the year totaled NT$3.81 trillion, with net income reaching NT$1.72 trillion and diluted earnings per share of NT$66.25.

In terms of shareholder returns, the board approved a cash dividend of NT$6.0 per share for the fourth quarter of 2025. The ex‑dividend date is scheduled for June 11 with the payment slated for July 9.

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