Taiwan Semiconductor Manufacturing Company (TSMC) received board approval for its $29.6 billion capital appropriations plan, covering construction of a chip fabrication (fab) facility and upgrade of existing advanced manufacturing systems.

In a statement, the contract chipmaker explained the allocation is designed to meet long-term capacity plans based on market forecasts and its technology development roadmap. Major areas targeted include expanding advanced technology and packaging capacities, and construction of fab systems.

The company previously set its full-year capex budget at $28 billion to $32 billion, compared with $30.4 billion in 2023.

The board also approved a capital injection of up to $7.5 billion for US subsidiary TSMC Arizona.

TSMC is receiving $11.6 billion in grants and loans under the US CHIPS Act to build a third chip production facility in the state of Arizona.

Revenue in Q2 rose 40 per cent year-on-year to a record high of TWD673.5 billion ($20.9 billion). For the first seven months of 2024, sales jumped 30.5 per cent to TWD1.5 trillion.