Taipei [Taiwan], August 12 (ANI): Taiwan Semiconductor Manufacturing Co. (TSMC) approved a capital budget of about USD 29.44 billion for expansion amid the ongoing artificial intelligence boom, according to a news report by Focus Taiwan.

In a statement, the world's largest contract chipmaker said a two-day board meeting that concluded Tuesday approved capital appropriations 'to meet long-term capacity plans based on market demand forecasts and the company's technology development roadmap'.

According to TSMC, the capital appropriation plan aims to meet a range of requirements such as installing advanced technology capacity and constructing fabs.

As per the news report, the approval followed an investor conference held in mid-July, where TSMC raised its 2026 capital expenditure forecast to between USD 60.0 billion and USD $64.0 billion. The revised figure marked an increase from its previous forecast of between USD 52.0 billion and USD 56.0 billion announced in mid-April.

At the mid-July conference, the semiconductor giant cited strong global demand for 5G, AI applications and high-performance computing devices as the primary driver behind the expanded budget.

According to the news report, alongside the capital allocation for manufacturing infrastructure, TSMC secured board approval to issue a cash dividend of NT$7.0 (USD 0.22) per share for the second quarter. The company recorded earnings per share of NT$27.25 during the second quarter. The NT$7.0 cash dividend for the second-quarter earnings remained unchanged from the dividend payout issued for the first quarter.

TSMC scheduled an ex-dividend date for Dec. 10, while the distribution of the cash payout was set for Jan. 7, 2027.

For Taiwanese companies that pay cash dividends annually, the ex-dividend date represents the moment a stock begins trading after the dividend from the previous year's earnings was deducted. TSMC altered its payout schedule in 2019, when it started to issue cash dividends quarterly instead of annually.

As per the news report, the upcoming payout will result in substantial disbursements to top shareholders. TSMC Chairman C.C. Wei, who holds 7.45 million TSMC shares, is expected to pocket NT$52.16 million (USD 1.79 million) in cash in January.

At the same time, the National Development Fund under the Executive Yuan, which stands as TSMC's largest shareholder with 1.65 billion shares, is expected to receive NT$11.58 billion (USD 396.85 million) in cash. (ANI)