TSMC increases capital of its subsidiary on a large scale to reduce foreign exchange hedging costs

TSMC's board of directors has approved an increase in the capital of its wholly-owned subsidiary TSMC Global within a limit of no more than US$10 billion (approximately RMB 72.945 billion). This large-scale capital increase has attracted widespread attention from the market. TSMC said that this move is mainly to reduce the cost of foreign exchange hedging. According to legal persons, TSMC increased the capital of TSMC Global by approximately US$8 billion last year, so this capital increase is not unusual.