The board of Taiwan Semiconductor Manufacturing Company (TSMC) has approved capital appropriations of about US$6.62 billion for the construction of new fab facilities, installation of advanced technology capacity and upgrade of advanced packaging capacity, as well as installation of specialty technology capacity, and R&D capital investments and sustaining capital expenditures for first-quarter 2020.

TSMC's board also approved capital appropriation of approximately US$106.1 million for capitalized leased assets in the first half of 2020, according to the pure-play foundry.

In addition, TSMC disclosed plans to establish a wholly-owned subsidiary in Japan to provide engineering services support to customers.

TSMC's board also approved a NT$2.50 per share cash dividend for the third quarter of 2019, when the company reported net profit climbed 13.5% on year and 51.4% sequentially to NT$101.07 billion (US$3.32 billion) with EPS reaching NT$3.90 (US$0.62 per ADR unit).

TSMC's capex for 2020 will be similar to the revised 2019 capex, company CFO Wendell Huang was quoted as saying in previous reports. The pure-play foundry revised its capex this year to a record US$14-15 billion to respond to customers' acceleration of 5G deployments resulting in growing demand for 7nm and 5nm chips.

TSMC has moved 5nm process technology to risk production, company CEO CC Wei has said. The process adopts EUV extensively and is well on track for volume production in the first half of 2020.

TSMC's 7nm process has entered its second year of commercial production, Wei noted. As demand for the process comes across a wide spectrum of applications ranging from mobile, HPC to IoT devices, TSMC expects to see 7nm process technology account for more than 25% of total wafer revenues this year with the proportion set to climb further in 2020.

By: DocMemory
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