Taipei, June 27 (CNA)
Morris Chang, chairman of Taiwan Semiconductor Manufacturing Co. (TSMC), is expected to receive NT$563 million (US$18.16 million) in cash dividends from his company after the chip maker goes ex-dividend June 29.
Currently, Chang owns 125 million TSMC shares and the cash dividend amount has been calculated based on approval secured from the chip maker's shareholders in an annual general meeting held June 9 to issue NT$4.5 in cash dividend per share for 2014.
C.F. Tseng, vice chairman of TSMC, is expected to receive NT$155 million in cash dividends as he owns 34.47 million TSMC shares. Like other TSMC shareholders, Chang and Tseng are expected to receive their shares in the third quarter.
In an annual TSMC sports day in October, Chang reiterated that he has faith in the company's outlook as the world's largest contract electronics maker had taken the lead over its peers in technology. He said he would keep buying the company's shares any time he has funds available.
TSMC said the development of the advanced 16 nanometer process is proceeding very smoothly and entered commercial production in the first half of this year. It is possible that shipments of chips made on the 16nm process are expected to rise significantly in the second half of the year, the chip maker said.
The even more sophisticated 10nm process of TSMC is scheduled to launch mass production in the second half of next year.
Amid lingering optimism toward his own company, Chang added 2 million TSMC shares last year, according to the company's 2014 annual report.
The NT$4.5 cash dividend is the highest dividend payout in the 18 years of TSMC's history as the chip maker posted a record high in net profit last year on the back of strong global demand for its high-end technology for mobile device use. Based on TSMC's 25.93 million outstanding shares, the company will distribute about NT$116.7 billion in cash dividends.
In 2014, TSMC posted NT$263.78 million in net profit, up 40.3 percent from a year earlier, with earnings per share at NT$10.18, compared with NT$7.26 recorded in 2014.
Shares of TSMC closed down 0.34 percent to close at NT$146.00 on Friday. After going ex-dividend at NT$4.5, the reference price of TSMC shares will go down to NT$141.50 when the local main board opens June 29.
Due to TSMC's going ex-dividend to drag down the company's market capitalization, the weighted index on the Taiwan Stock Exchange is expected to be cut by about 40 points. TSMC is the most heavily weighted stock in the local market. (By Jackson Chang and Frances Huang)
Taipei, June 27 (CNA)