Taiwan Semiconductor Manufacturing Company Ltd (TSMC) plans to use debt market funds to raise $9 billion to fund expansion. The company’s subsidiary in Japan will end up costing roughly $178 million. Last month, the world’s largest contract chipmaker reported its highest-ever quarterly profit and forecast multiple years of growth opportunities while boosting revenue and capital spending estimates.

Taiwan’s high-tech companies have profited from the soaring need for chips to enhance the efficiency of laptops, tablets, smartphones, and other products used by the workforce during the COVID-19 pandemic.

They are also working hard to resolve an auto industry chip shortage. The company said in a statement that the board approved unsecured corporate bonds to be issued domestically not to exceed T$120 billion.

Additionally, the board approved an authorization to provide TSMC Global with a guarantee of no more than $4.5 billion in senior unsecured corporate bonds denominated in U.S. dollars. Without elaborating, it said that the raised funds would be used to expand TSMC’s production capacity.

The company said in January that it expected to spend $25 billion-$28 billion on developing advanced chips this year, an amount that is 60 percent higher than it spent last year.

In its statement about the board meeting, it stated that the board had voted to approve capital budgets of approximately $11.79 billion for fab construction, installation, and upgrading advanced technology capacity, as well as second-quarter 2021 acquisitions and sustaining capital expenditures.

In addition to the board decision, TSMC also announced the establishment of a wholly-owned joint venture in Japan to develop three-dimensional integrated circuit (3DIC) technology, with a paid-in capital of at least 18.6 billion yen.

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