Taiwan Semiconductor Manufacturing Co's (NYSE:TSM) board of directors has approved capital appropriations totaling $29.62 billion. These funds are allocated for the installation enhancement of the company's chip manufacturing process technologies and the expansion of its advanced and mature packaging technology capacity, the Taipei Times reports.

The capital expenditure budget will also support the construction of new fabs and the installation of manufacturing facilities. Taiwan Semiconductor is a key Nvidia Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL) supplier.

Taiwan Semiconductor has yet to disclose its discussions with flat-panel display maker Innolux Corp regarding acquiring an idle plant.

According to Innolux, it could repurpose approximately 60% of the idle plant's manufacturing equipment for fan-out panel-level packaging (FOPLP) technology.

Taiwan Semiconductor Chairman C.C. Wei previously informed investors that the company is exploring panel-level fan-out technology, which he anticipates will reach maturity within three years.

In July, Taiwan Semiconductor disclosed plans to invest $28 billion-$32 billion this year in new facilities and equipment.

Additionally, Taiwan Semiconductor's board approved a new capital injection of up to $7.5 billion into Taiwan Semiconductor Arizona.

Taiwan Semiconductor continues to enjoy the upside of the artificial intelligence wave, gaining over 85% in the last 12 months.

The company reported 45% revenue growth in July, and analysts told Bloomberg that they expect Taiwan Semiconductor's third-quarter revenue to grow by at least 37%.

Morgan Stanley named Taiwan Semiconductor a "top pick," citing its quality, defensive nature, and attractive valuations.

Investors can gain exposure to Taiwan Semiconductor through SPDR MSCI ACWI ex-US ETF (NYSE:CWI) and SPDR NYSE Technology ETF (NYSE:XNTK).

Price Action: TSM shares traded lower by 0.41% at $171.63 premarket at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.