TSMC Maintains Q2 Dividend at NT$7, Announces Joint Venture with Sony; MSCI Raises Taiwan Weighting; GDP Forecast Hits 11.05%

TSMC (2330-TW)(TSM-US) held its board meeting on Tuesday (11th), approving four major resolutions: Q2 financial results, a cash dividend of NT$7 per share, capital expenditure of USD 29.4 billion, and the establishment of a joint venture with Sony Semiconductor Solutions Corporation (Sony). The Q2 dividend remains at NT$7, with the ex-dividend date set for December 10, 2026, and payment scheduled for January 7, 2027. Notably, TSMC has introduced a new option for foreign shareholders to receive dividends in U.S. dollars.

Additionally, TSMC announced it has signed a legally binding definitive agreement with Sony Semiconductor Solutions to establish a joint venture, Advanced Vision Semiconductor Manufacturing Corporation, in Koshi City, Kumamoto Prefecture, Japan. This joint venture will utilize advanced process technologies as a core hub for the development and mass production of image sensors for smartphones, with mass production expected to begin in 2029.

MSCI announced its latest quarterly review on Friday (13th), increasing Taiwan's weighting across three major indices. The MSCI Taiwan Index will add six new constituents: Nanya Technology (2408-TW), Winbond Electronics (2344-TW), Phison Electronics (8299-TW), Nantex (8046-TW), Tact (6274-TW), and Kinsus Interconnect Technology (3189-TW). The updated weightings will take effect after the market close on August 31.

The Directorate-General of Budget, Accounting and Statistics (DGBAS) released its latest GDP growth forecasts for 2025 and 2026 on Friday (14th). Driven by a robust 14.15% growth in the first half and an upward revision of 1.33 percentage points for the second half (projected at 8.27%), the full-year 2025 GDP growth forecast was raised by 1.41 percentage points to 11.05%, the highest since 1988. The Consumer Price Index (CPI) is projected to rise 2.07% year-on-year, slightly above the central bank's inflation alert level of 2%.

Foxconn (2317-TW) held its earnings call on Wednesday (12th), where co-CEO Young Liu stated that AI server rack shipments continue to grow quarter-on-quarter. Q3 shipments are expected to increase at a high double-digit rate, maintaining the full-year target of more than doubling. The next-generation AI platform from NVIDIA, Vera Rubin, is expected to ramp up volume shipments in Q4 and become a key product in 2026. Foxconn aims to increase its AI server market share toward 50%.

Quanta Computer (2382-TW) released its latest financial results and held an earnings call on Thursday (13th). Its first-half net profit reached NT$49.844 billion, or NT$12.92 per share, a record high. Quanta stated that demand for AI servers remains strong, expecting full-year AI server revenue to double. Production capacity will double by year-end, and visibility for AI server demand extends through 2028.

Taiwan Mobile (3045-TW) held a major announcement press conference on Wednesday (12th), revealing plans to acquire shares of CyberLink (6214-TW) through its wholly-owned subsidiary, Taiwan Star Telecom. The goal is to increase its stake by at least 39%, bringing total ownership above 50%. The maximum acquisition cost is capped at NT$29.13 billion, representing a 29.5% premium. CEO Lin Tzu-cheng expressed strong confidence in the synergies from this acquisition, stating that once majority ownership is secured, both companies' revenues and profits could significantly increase as early as this year.