Taiwan Semiconductor Manufacturing Co.'s board approved a $29.4 billion capital budget and a plan to let qualified foreign shareholders collect dividends in U.S. dollars for the first time, as the chipmaker posted a 77.4% jump in quarterly profit driven by surging demand for its most advanced chips, the company said August 11.
The board session combined formal approval of second-quarter earnings with a regulatory shift affecting how some overseas investors get paid and a fresh round of capacity spending tied to artificial intelligence demand — underscoring how central TSMC has become to the global AI buildout even as it manages a strengthening Taiwan dollar.
Advanced Chip Demand Drives Record Q2 Profit
TSMC reported second-quarter consolidated revenue of NT$1.27 trillion and net income of NT$706.6 billion, for earnings per share of NT$27.25, or $4.31 per American depositary receipt. Revenue rose 36.0% and net income rose 77.4% from a year earlier; compared with the first quarter, revenue grew 12.0% and net income grew 23.4%. In U.S. dollar terms, revenue reached $40.20 billion, up 33.7% year-over-year.
Gross margin came in at 67.7%, operating margin at 60.3%, and net profit margin at 55.6%. TSMC's most advanced technologies — 7-nanometer and smaller — accounted for 77% of wafer revenue, with three-nanometer chips alone making up 30% and the newer two-nanometer node already at 3% in just its early production ramp.
"Our business in the second quarter was supported by strong demand for our leading-edge process technologies," said Wendell Huang, senior vice president and chief financial officer, in the company's July 16 earnings release. He said that trend would continue into the third quarter with a further ramp-up of the two-nanometer process.
Third Quarter Revenue Guidance Tops $44 Billion
TSMC guided third-quarter revenue to a range of $44.6 billion to $45.8 billion, with gross margin expected between 65% and 67% and operating margin between 56% and 58%, based on an assumed exchange rate of NT$32 to the dollar. The forecast implies another sequential increase from the second quarter's $40.20 billion.
TSMC Confirms NT$7 Dividend And Payment Date
Alongside the earnings, the board approved a cash dividend of NT$7 per share. The ex-dividend date for common shares is set for December 10, 2026, with the record date on December 16 and payment scheduled for January 7, 2027. Under Article 165 of Taiwan's Company Act, TSMC will freeze transfers of its common stock for five days ahead of the record date, from December 12 through December 16, 2026. For its ADRs listed on the New York Stock Exchange, both the ex-dividend date and record date fall on December 10, 2026.
Starting with this dividend cycle, TSMC will let eligible foreign shareholders — those investing under Taiwan's regulations governing securities investment by overseas Chinese and foreign nationals — choose to receive their cash dividend in U.S. dollars rather than New Taiwan dollars. The company said the change follows a rule revision by Taiwan's Financial Supervisory Commission, the island's top financial regulator, and marks the first time TSMC has offered the option. TSMC noted the choice is limited to foreign shareholders who meet the regulator's qualifying criteria and is not available to its broader shareholder base.
New Capital Budget Boosts Advanced Chip Packaging
Separately, the board approved a capital budget of $29.4425 billion, equivalent to roughly NT$950.1 billion based on the Bank of Taiwan's U.S. dollar spot exchange rate on August 11. TSMC said the funds are earmarked for building and upgrading advanced process capacity, expanding advanced packaging, mature-node and specialty process lines, and constructing new fabs and supporting facilities.
The company pointed to sustained demand from artificial intelligence and high-performance computing workloads as the driver behind capacity additions spanning wafer fabrication, back-end packaging, and infrastructure. TSMC cautioned that the newly approved figure applies only to this specific budget item and should not be read as a revision to its full-year 2026 capital expenditure outlook.
TSMC And Sony Advance Image Sensor Venture
In the same meeting, TSMC's board approved forming a joint venture with Sony Semiconductor Solutions Corp. to develop and manufacture next-generation image sensors, agreeing to subscribe to shares in the venture worth up to 282 billion yen. The move follows an earlier deal in which the two companies committed 747 billion yen to a Sony-led venture in Kumamoto, Japan, that is targeting mass production of next-generation smartphone image sensors by 2029. （Related： Tzu Chi Lost $38 Million to Vaccine Fraudsters and Never Noticed for Five Years ｜ Latest ）
