TSMC plans US dollar dividend for foreign investors from 2027

Taiwan Semiconductor Manufacturing Co. plans to pay dividends in US dollars to foreign investors starting in 2027, removing a key currency conversion barrier for international shareholders.

"Removing currency conversion costs makes our shares more accessible to global investors," Huang Jen-chao, chief financial officer at TSMC, said.

The policy change applies to foreign investors holding TSMC shares through the Taiwan Stock Exchange, who currently receive dividend payments in New Taiwan dollars. Foreign institutional investors and ETFs holding the stock must convert NT dollar dividends back to their home currencies, incurring transaction costs and FX exposure. The shift to US dollar payouts eliminates that friction.

TSMC, the world's largest contract chipmaker with a market capitalization exceeding $1 trillion, counts major US asset managers including Vanguard and BlackRock among its top shareholders. The company's American depositary receipts trade on the New York Stock Exchange under the ticker TSM. The dividend policy change signals TSMC's commitment to improving corporate governance standards for its growing international investor base, which has expanded as the company builds three advanced fabrication plants in Arizona under a $265 billion US investment plan.

For holders, the move reduces a structural cost of owning TSMC shares and could increase demand from global passive funds and ETFs that prioritize administrative efficiency. Investors will watch for further details on the implementation timeline and any associated changes to the company's dividend payout ratio when TSMC reports its next quarterly results.

This article is for informational purposes only and does not constitute investment advice.