TAIPEI (CNA) — Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, said Tuesday it has approved a plan to issue a NT$2.5 (US$0.08) cash dividend per share for its earnings in the first quarter of this year.
In the January-March period, TSMC raked in NT$4.51 in earnings per share, up from NT$4.47 the previous quarter and also up from NT$2.37 over the same period last year.
The NT$2.5 cash dividend per share plan, which was approved by a board meeting on Tuesday, had been widely anticipated by the market as the company, which enjoys steady earnings growth by holding a technological lead over its peers, had said it would follow a stable cash dividend payout policy.
In 2019, TSMC issued a total of NT$10 in cash dividends per share to shareholders. The chipmaker has announced that total annual cash dividend payouts will be NT$10 or even higher.
TSMC approved a proposal in 2018 to issue cash dividends on a quarterly basis, starting in 2019, instead of an annual basis, making it the first company listed on Taiwan’s stock market to do so.
For the latest proposed cash dividend, TSMC said, it set Sept. 17 as the ex-dividend date and is scheduled to issue the cash dividends on Oct. 15.
At the same meeting, board members approved a capital appropriation plan in which the chipmaker will spend US$5.704 billion to build new production lines, upgrade high-end technology processes and install specialty technological capacity.
TSMC said the funds will be also used for research and development investment in the third quarter.
The board meeting also issued a greenlight for another US$64.75 million capital appropriation proposal to meet demand for capitalized leased assets in the second half of 2020.
TSMC said it is planning to issue up to NT$60 billion in unsecured corporate bonds in Taiwan for production expansion and pollution prevention, though no exact timetable for the bond sale was immediately available.
Meanwhile, the company has scheduled its annual general meeting for June 9.