Taiwan Semiconductor Manufacturing Co. Ltd., or TSMC, will raise about US$8.9 billion of debt to fund expenses for capacity expansion and pollution prevention projects.

The Taiwanese chipmaker's board on Feb. 9 approved the issuance of up to NT$120 billion (about US$4.4 billion) of unsecured corporate bonds in the domestic market, according to a filing. The board also greenlighted the provision of a guarantee to TSMC's wholly owned foreign unit TSMC Global Ltd. for its issuance of U.S. dollar-denominated senior unsecured corporate bonds of not more than US$4.5 billion.

TSMC's board approved the creation of a wholly owned subsidiary in Japan to expand its research on three-dimensional integrated circuit, or 3DIC, materials. The subsidiary will have a paid-in capital of not more than ¥18.6 billion (about US$186 million).

The board approvals came as TSMC continues its operational expansion, with plans to begin construction of its advanced semiconductor fabrication plant in the U.S. in 2021 and a capacity increase at its manufacturing facility in Nanjing, China.

Separately, TSMC's board approved the sale of up to 39,501,000 common shares of its unit, semiconductor optical components developer VisEra Technologies Co. Ltd., at NT$240 per share, to facilitate the latter's initial public offering in Taiwan, according to the filing.

As of Feb. 8, US$1 was equivalent to NT$28.03, or ¥105.22.

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