TSMC’s board of directors has approved a capital appropriation of approximately US$31.28 billion
Capital Allocation and Strategic Priorities
The appropriation, approved during a May 12 board meeting in Hsinchu, is designated for two primary purposes: installation of advanced technology capacity, and fab construction along with fab facility systems. This figure does not include a separate capital injection of up to US$20 billion into TSMC Arizona Corporation, the company’s wholly-owned U.S. subsidiary, which remains subject to regulatory approval. Combined, these actions push TSMC’s 2026 capital expenditure toward the upper end of its previously guided range of US$52 billion to US$56 billion, consistent with management’s commentary on sustained demand from 5G, AI, and high-performance computing applications.
U.S. Expansion and Infrastructure Scaling
The US$20 billion authorization for TSMC Arizona follows earlier commitments to the Phoenix campus, where Fab 21 is currently producing on N4 process technology and additional phases target more advanced nodes. With this latest injection, total committed investment in Arizona is on track to exceed US$165 billion, positioning the site as the largest greenfield foreign direct investment in U.S. history. The board’s capital authorizations come days before TSMC’s annual technology symposium, where executives have outlined plans to bring 18 new fabs and advanced packaging facilities online to meet tight supply for CoWoS and SoIC packaging, both critical for AI accelerator customers.
Financial Results and Governance
The board also approved a first-quarter 2026 cash dividend of NT$7.0 per share, with a record date of September 22, 2026, and payment scheduled for October 8, 2026. Ratified Q1 2026 results include consolidated revenue of NT$1,134.10 billion, net income of NT$572.48 billion, and diluted EPS of NT$22.08. Additionally, four executive promotions were approved, including Jonathan Lee to Senior Vice President of Corporate Planning, and promotions for Y.H. Wu (Quality & Reliability), Dr. Y.C. Ku (Research and Development / Nano Patterning Technology), and Span Lu (Operations / Intelligent Manufacturing Center) to Vice President.
Forward-Looking Significance
This capital authorization underscores TSMC’s strategic alignment with the structural shift in semiconductor demand driven by AI and high-performance computing. By scaling both domestic and overseas capacity simultaneously, the company is positioning itself to meet long-term customer commitments while navigating geopolitical and supply chain complexities. The scale of investment—among the largest in corporate history—reinforces TSMC’s role as the linchpin of global advanced semiconductor manufacturing and signals confidence in sustained growth through the remainder of the decade.
