TSMC unit will raise $10 billion capital to combat forex fluctuations – report

Taiwan Semiconductor Manufacturing Co.’s (NYSE:TSM) overseas unit, Taiwan Semiconductor Global, is set to issue $10 billion worth of new stock to counter foreign exchange swings.

The company faces the risk of strengthening Taiwanese dollar against the volatile and weakening U.S. dollar (DXY). The move is expected to reduce its foreign exchange hedging costs, the company said in a statement.

It is the third such deal since 2024, and by far the largest, according to a Bloomberg report. Such deals have taken place during periods when the Taiwan dollar appreciated.

The capital injection is for general investments, mainly bank deposits and bonds, according to a separate statement from Taiwan’s Department of Investment Review.

The decision reflects TSMC’s efforts to shift its own foreign exchange holdings to the unit to help with hedging costs and maintaining financial stability in a turbulent global environment.