TSMC announced a 28% increase in its 2026 annual dividend to TWD 23 per share, up from TWD 18 in 2025. The hike follows a record 2025 year marked by strong cash generation and robust profitability.
The dividend increase is underpinned by operating cash flow of US$13.6 billion in Q3 2025 and a free‑cash‑flow position of US$90 billion, demonstrating the company’s ability to sustain high payouts while investing heavily in AI‑driven demand and advanced process technologies.
TSMC’s 2025 full‑year performance saw revenue rise 30.3% to NT$2.27 trillion and net income of NT$1.72 trillion, with basic EPS of NT$66.26 versus NT$45.25 in 2024. The company also raised its 2025 revenue guidance to the mid‑30% range, underscoring confidence in continued AI‑driven growth.
Management highlighted the strength of AI demand: CEO C.C. Wei said, “AI demand continues to be very strong — stronger than we thought three months ago.” CFO Wendell Huang added, “We believe a long‑term gross margin of 56% and higher through the cycle is achievable, and we can earn an ROE of high 20s percent through the cycle.” These comments signal that the dividend increase is part of a broader strategy to reward shareholders while maintaining a healthy payout ratio of 30‑50%.
The dividend decision comes as TSMC has joined the $2 trillion market‑cap club and reached a 52‑week high, reinforcing investor confidence. Analysts view the payout as a clear signal of management confidence and cash‑return to shareholders, while the company continues to invest $52‑56 billion in capital expenditures for AI and advanced process nodes.
The dividend hike also reflects TSMC’s historical trend of steady increases: 2024 dividend was NT$14.0 per share, 2023 was NT$12.0, and 2022 was NT$10.0. The 28% jump to NT$23 per share continues this trajectory and positions the company to maintain a sustainable payout while funding future growth.
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