TSMC to open research subsidiary in Japan
Published 13 February 2021
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) plans to raise nearly $9 billion in debt, a move which would aid its global expansion palans. As a part of this effort, TSMC plans to spend around $178 million to open a Japanese material research subsidiary, according to a Reuters report.
The TSMC Board approved the issuance of unsecured corporate bonds domestically not exceeding T$120 billion ($4.29 billion). It also approved the provision of a guarantee to wholly-owned subsidiary TSMC Global for its issuance of U.S. dollar-denominated senior unsecured corporate bonds not to exceed $4.5 billion.
The money raised would finance TSMC’s capacity expansion and/or pollution prevention-related expenditures, the company said after these decisions were taken in its Board meeting.
TSMC also said the board had approved the establishment of a wholly owned Japanese subsidiary in Japan to expand three-dimensional integrated circuit (3DIC) material research, with a paid-in capital of not more than 18.6 billion yen ($178 million).
The company said in January it expected to raise capital spending on the production and development of advanced chips to $25 billion-$28 billion this year, as much as 60 per cent higher than the amount it spent in 2020.
Further, the Board approved capital appropriations of approximately $11.79 billion for fab construction, installation and upgrade of advanced technology capacity and second quarter 2021 R&D capital investments and sustaining capital expenditures.
The world’s top contract chipmaker last month posted its best-ever quarterly profit and hiked revenue and capital spending estimates to record levels as it forecast multiple years of growth opportunities.