TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) said Tuesday it would raise nearly $ 9 billion from the debt markets to help fund expansion and spend about $ 178 million to open a Japanese products research subsidiary.
Last month, the world’s leading contract maker posted the best-ever quarterly profit and projected revenue and capital expenditure estimates to the highest levels. record height and predict “several years of growth opportunities”.
Taiwanese tech companies have benefited from high demand for chipsets that go into laptops, tablets, smartphones and other products to support the work and monitoring at home upgrades around the world during COVID-19 pandemic. They are also working hard to address chips shortages for manufacturers.
In a statement following a board meeting, the company said the board had approved the issuance of unsecured corporate bonds at home not exceeding T $ 120 billion ($ 4.29 billion) .
They also agreed to pledge to TSMC Global’s wholly-owned subsidiary to issue high-value unsecured corporate bonds denominated in U.S. dollars not to exceed $ 4.5 billion.
The money raised would “fund the expansion of TSMC’s capacity and / or pollution prevention-related expenditure,” he said, without expansion.
The company said in January that it expected capital gains to increase production and development of advanced chips to $ 25 billion- $ 28 billion this year, as much as 60% higher than the amount it spent in 2020.
In its statement to the board meeting, it stated that the board had approved capital allocations of approximately $ 11.79 billion for the construction, installation and upgrading of advanced technology capacity and “R&D capital investments in the second quarter of 2021 and maintenance capital expenditure ”.
TSMC also said that the board had approved the establishment of a wholly-owned Japanese subsidiary in Japan to expand unified three-dimensional (3DIC) material exploration, with paid-up capital not exceeding 18.6 billion yen ($ 178 million).
($ 1 = 27.9840 Taiwan dollars)
($ 1 = 104.6900 yen)
Reporting by Ben Blanchard