At a time of strong demand for the company's products and worsening supply chain congestion, TSMC (115.34,0.48,0.42%) is studying possible dollar bond issuance.
The world's leading contract manufacturer has hired Goldman Sachs (413.69, 7.62, 1.88%) to act as the exclusive global coordinator and bookkeeper, and will arrange a series of conference calls with fixed-income investors in Asia, Europe and the United States on Tuesday. TSMC Arizona may then issue SEC registered dollar-denominated priority notes guaranteed by TSMC, according to a person familiar with the matter who spoke on condition of anonymity because of unauthorised requests for anonymity.
Earlier, TSMC's fourth-quarter revenue and profit margins exceeded analysts' estimates. With demand for semiconductors from cars to the latest smartphones pushing delivery times to record highs and helping to fill orders, the company's production is likely to be stretched until the end of 2022.
Capacity constraints limit the Taiwanese company's ability to take full advantage of the boom, but it has set aside $100 billion to expand production over the next three years and announced plans to build a new plant in Japan.
TSMC's u.s. stocks closed up 0.42% on Monday.
