TSMC approves $29.4B capital budget, Sony joint venture

Taiwan Semiconductor Manufacturing Co. ↗ 1.68% approved a capital budget of approximately $29.44 billion following a two-day board meeting that concluded Tuesday, as the world's largest contract chipmaker moves to expand capacity amid surging demand for artificial intelligence chips.focustaiwan+1

Expansion and Sony Partnership

The capital appropriation covers installing advanced technology and packaging capacity, expanding mature and specialty technologies, and constructing new fabrication facilities, according to a company filing with the U.S. Securities and Exchange Commission. The spending forms part of TSMC's full-year 2026 capital expenditure forecast of $60 billion to $64 billion, which the company raised from a prior range of $52 billion to $56 billion at its mid-July investor conference, citing strong global demand for AI, 5G, and high-performance computing.stocktitan+2

The board also approved a joint venture with Sony Semiconductor Solutions Corporation for next-generation image sensors, including a share subscription of up to 282 billion Japanese yen in the venture. The two companies signed a non-binding memorandum of understanding in May, and according to a Nikkei report cited by Reuters, the partnership could involve total investment of roughly 1 trillion yen ($6.3 billion), with Sony holding about 60% and TSMC about 40%. Commercial production at a facility in Kumamoto Prefecture, Japan, could begin as early as 2029.reuters+1

Record Quarterly Earnings

The board decisions came alongside TSMC's previously reported Q2 2026 results, which showed consolidated revenue of NT$1.27 trillion, up 36% year over year, and net income of NT$706.56 billion, a 77.4% increase, according to CNBC. Diluted earnings per share came in at NT$27.25, beating analyst expectations.qz+2

Dividend Payout

The board approved a cash dividend of NT$7.0 per share for the second quarter, unchanged from the first quarter payout. The ex-dividend date is set for December 10, with payment scheduled for January 7, 2027. TSMC Chairman C.C. Wei, who holds 7.45 million shares, is expected to receive NT$52.16 million from the payout, while the National Development Fund, TSMC's largest shareholder with 1.65 billion shares, stands to collect NT$11.58 billion.focustaiwan+1