Shulou(Shulou.com)11/24 Report--

According to news on April 23, before TSMC released its first-quarter results, it was reported that it intended to cut capital expenditure this year to $28-32 billion due to the slowdown in some plant construction and the continued downturn in the semiconductor industry.

But judging from the results released by TSMC and the information revealed by executives in a subsequent conference call with earnings analysts, they have no plans to cut capital spending this year.

When talking about this year's capital expenditure in a conference call with earnings analysts in the first quarter, TSMC CFO Huang Renzhao said that their annual capital expenditure is based on growth expectations for the next few years, and as they have mentioned before, given the short-term uncertainty, they will continue to develop their business cautiously and tighten capital expenditure in due course, but their commitment to support customers' structural growth will not change. Capital expenditure and capacity planning are still based on long-term market conditions, so they expect capital expenditure budget of $32 billion to $36 billion in 2023.

In its results for the fourth quarter of last year, released on January 12, TSMC management expected capital expenditure of US $32-36 billion this year, which is still expected at this level, which means that their capital expenditure budget for this year has not been cut as previously reported, at least not so far.

However, with revenues falling for two consecutive quarters and profits affected, TSMC also maintained its capital expenditure forecast of $32-36 billion this year, which could affect other expenses, and investors are also concerned about whether dividends will be affected.

With regard to dividends, Huang Renzhao also mentioned in a conference call with financial analysts that they remain committed to a sustained and steady increase in annual and quarterly dividends. In addition, Huang Renzhao also said that they will continue to work closely with customers to plan their long-term production capacity, and continue to invest in advanced technology to support customer growth and bring more profits to shareholders.

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