By: Central News Agency
Taipei, March 30 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) has obtained the green light from the Investment Commission to remit US$2 billion overseas to boost its investments in a financial subsidiary located in the British Virgin Islands.
The commission said that it was the third application filed by TSMC to invest in TSMC Global Ltd., and the firm is expected to remit the amount through its account at an offshore banking unit. The commission issued its approval of
TSMC’s increased investment in TSMC Global at a review meeting held Tuesday. Market analysts said that the large fund remittance showed TSMC’s aim to offset the impact of foreign exchange losses on expectations that the U.S. dollar could move higher at a time of possible further interest rate hikes by the U.S. Federal Reserve later in the year.
The establishment of TSMC Global is part of the efforts of the world’s largest contract chip maker to hedge foreign exchange risks. In July and November 2015, the commission approved two separate applications by TSMC each valued at US$2 billion in the overseas financial firm. [FULL STORY]