After Samsung, TSMC is now being shaken. Taiwan's TSMC, the world's largest foundry (contract chip manufacturer), has been engulfed in rumors of bonus cuts despite record-breaking earnings. TSMC Chairman C.C. Wei even canceled a business trip to placate employees, but the internal mood has only worsened.
According to Taiwan's Central News Agency and the Liberty Times on Tuesday (local time), Chairman Wei canceled a business trip scheduled for the previous morning and held a meeting with employees. He stated that this year's bonuses would increase by more than 30% compared to last year.
"Our consideration for employees cannot change. We are grateful for our employees' contributions to the company," Wei said. "Since 2023, the annual bonus growth rate has never fallen below 30% — in fact, it has exceeded 30%."
He added, "If employee performance evaluations remain the same as last year, this year's bonuses will also be strongly raised," noting that "the growth margin will exceed last year's 30%." He also said the wage increase rate for junior employees would be set higher than that of senior managers.
Wei explained that as TSMC has entered a new stage of development, the company needs to reexamine its profit-sharing approach. He said the company would consider three areas together: employees, shareholders, and social responsibility. He noted that wages this year would be higher than last year, and going forward, they could be adjusted according to revenue growth.
Regarding talent poaching by competitors, he said, "I'm not worried," adding that unlike other companies, TSMC would not determine bonuses based on the profits of individual business divisions. Expressing confidence in the company's future, he even encouraged employees to use their bonuses to buy TSMC shares.
In an internal email that day, Wei also stated, "Even if the compensation system is adjusted in the future, this is not aimed at reducing employee contributions but at building global competitiveness for the next 10 to 20 years." In the previous day's email, he said, "First-quarter bonuses this year will increase 30% from a year earlier," and "the overall bonus growth rate for this year will also exceed that of last year."
The situation is drawing attention alongside the labor-management conflict at Samsung Electronics. As Samsung Electronics moves close to a strike amid labor-management disagreements over bonuses, voices in Taiwan have emerged warning that TSMC bonuses could be cut by about 15%, with some calling for strikes or the formation of a labor union. Industry observers note that while TSMC has an employee welfare committee, it lacks a labor union, making an actual strike difficult — but they point out that internal communication issues could affect employee morale.
The problem is that Wei's direct outreach has backfired. The Liberty Times reported that after the meeting, criticism of the company on anonymous platforms actually increased. One employee remarked, "Even though the company earned twice as much as last year, the maximum salary increase is only 30%."
Among employees who could not attend the meeting, criticism poured in: "The foundation of mutual trust has already begun to shake," "It wasn't a communication meeting but a presentation — there was no communication at all," and "Does this mean unfinished work can just be done tomorrow?" Some say the world's top two semiconductor firms are simultaneously facing labor-management conflicts.
