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TSMC Bets $45 Billion on AI Boom with Record Chip Expansion

TSMC has approved a massive $44.96 billion capital expenditure budget to expand its advanced and specialty chip manufacturing capacity, driven by global AI demand. The board, meeting in Japan, also greenlit a record NT$206.15 billion in employee bonuses and profit-sharing for 2025, marking a nearly 47% increase from the prior year. This payout reflects the company's strong financial performance, with 2025 revenue reaching NT$3.81 trillion and net income of NT$1.72 trillion. Furthermore, TSMC plans to upgrade its second Japanese fab in Kumamoto to produce cutting-edge 3-nanometer chips.

Key Points: TSMC Approves $45B Budget for AI Chip Expansion

  • $44.96B budget for advanced tech
  • Kumamoto plant upgrade to 3nm
  • Record $6.53B employee bonus payout
  • Avg. bonus exceeds $83,580 per employee
  • Revenue hit NT$3.81 trillion in 2025
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TSMC approves USD 44.96 billion capital budget to fuel global AI expansion

TSMC approves a $44.96 billion capital budget to expand advanced chip capacity and sets a record $6.53 billion employee bonus payout amid the AI boom.

"setting a record high for the second consecutive year - TSMC statement"

Taipei, February 11

Taiwan Semiconductor Manufacturing Co. approved a USD 44.96 billion capital budget on Tuesday to expand its advanced and speciality technology capacity amid a global surge in demand for artificial intelligence.

The decision, made during the company's first-ever board meeting in Kumamoto, Japan, allocates funds to upgrade advanced packaging, construct new fabrication plants, and install essential facility systems.

As per a report by Focus Taiwan, the massive appropriation ensures the chipmaker can fulfil its long-term technology roadmap. The company stated that the funding targets the installation and upgrade of advanced, mature, and speciality technology capacity to meet rising global requirements.

In a meeting with Japanese Prime Minister Sanae Takaichi last week, TSMC CEO CC Wei said that the company plans to upgrade its second facility in Kumamoto to produce 3-nanometer chips to meet surging global demand for AI applications.

The board further approved a record-breaking distribution of employee business performance bonuses and profit-sharing totalling approximately NT$206.15 billion (approx. USD 6.53 billion) for 2025. This figure represents a 46.62 per cent increase compared to the NT$140.5 billion (approx. USD 4.45 billion) approved for the previous year.

The company noted in a statement that the payout "setting a record high for the second consecutive year" reflects how the firm capitalises on the global AI boom. Half of this total was distributed quarterly throughout 2025, while the remaining profit-sharing portion is scheduled for distribution in July 2026.

With a headcount of approximately 78,000 employees in Taiwan, the average payout per person is expected to exceed NT$2.64 million (approx. USD 83,580). This is a significant rise from the NT$2 million (USD 63,320) recorded in 2024, signalling heightened profitability for the world's largest contract chipmaker.

"The board also approved its 2025 business report and financial statements, which showed consolidation revenue for the year totalled NT$3.81 trillion, with net income reaching NT$1.72 trillion and diluted earnings per share of NT$66.25," the Focus Taiwan report said.

In addition to capital investments and employee compensation, the board approved a cash dividend of NT$6.0 (approx. USD 0.19) per share for the fourth quarter of 2025. Shareholders are set to see the ex-dividend date on June 11, with payments scheduled for July 9.

- ANI

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Reader Comments

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Priya S
The employee bonuses are mind-blowing! An average of over $83k per person? That's more than many Indian techies earn in years. Shows the value of being at the absolute cutting edge of technology. Our IT companies need to step up their R&D game to compete in this league.
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Rohit P
Interesting that the board meeting was in Japan. The geopolitical chess game around chip manufacturing is intense. India is trying to get into the game with incentives, but TSMC's scale is just on another planet. We need to focus on niche areas where we can excel first.
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Sarah B
As someone working in tech, this news is both exciting and worrying. The AI arms race is pushing chip complexity to new heights. TSMC's 3nm plans in Japan will power the next generation of AI models. Hope this leads to more affordable and accessible AI tools for developers everywhere, including in India.
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Vikram M
$45 billion budget... that's almost 3.7 lakh crore rupees! 🤯 For perspective, that's more than the annual budget of some Indian states. The scale of investment needed for leading-edge semiconductors is staggering. It highlights why global collaboration, not just self-reliance, is crucial for India's tech future.
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Karthik V
While the financials are impressive, I have a respectful criticism. This level of concentration of chip manufacturing in one company (and one region) is a global risk. What if there's another pandemic or geopolitical tension? The world, including India, needs a more diversified and resilient supply chain. TSMC's dominance is a vulnerability.

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