The lavish performance bonuses paid by Korean and Taiwanese companies are drawing attention in Japan as the semiconductor industry's earnings surge amid the artificial intelligence (AI) boom. In particular, as reports emerged that Samsung Electronics, SK hynix, and TSMC are sharing massive profits with their employees, interest in corporate compensation systems is rising in Japanese society.
Taiwan's daily United Daily News reported Thursday that local Japanese workers have been reacting to news that the labor and management of Samsung Electronics' memory business division recently discussed a plan to pay performance bonuses averaging around 600 million won per person. In Japan, comments such as "a level where you could buy a luxury sports car with the bonus alone" and "roughly 10 years' worth of an average Japanese worker's annual salary" have emerged.
In contrast, summer bonuses at major Japanese companies are known to average around 1 million yen (about 9.6 million won). Local media highlighted the compensation gap between the two countries, saying, "Samsung Electronics employees can buy a Ferrari with their bonus alone, but Japanese workers can hardly afford a single new Toyota Prius even if they save up all their bonuses."
"Profits Go to Shareholders": Japanese Compensation System Under Scrutiny
The industry is taking note of the fact that even when Japanese companies earn high profits, the proportion that translates into employee compensation is relatively low. Japan is seen as having limited room to expand performance-based compensation due to a still-strong corporate culture that emphasizes a seniority-based wage system and employment stability.
In particular, despite maintaining world-class competitiveness in the semiconductor materials, parts, and equipment sectors, observers point out that the rewards employees actually feel are relatively small. While companies' average salaries are disclosed, the scale of performance bonuses and the criteria for their distribution are often difficult to verify externally, prompting voices that the compensation system lacks transparency.
Experts point out that as competition to secure global tech talent has intensified in the AI era, Japanese companies must also reconsider their profit-sharing methods. The analysis is that while the seniority-based system provided stability during economic downturns, it makes it difficult to prevent the outflow of top talent during growth phases.
TSMC Also Declares Bonus Expansion: "Securing Talent Is the Biggest Challenge"
TSMC, Taiwan's largest foundry company, also stated that it will continue its policy of expanding performance bonuses. TSMC Chairman C.C. Wei said at the company's shareholders' meeting that day, "Over the past three years, employee performance bonuses have increased by about 30% each year, and this year they will rise by more than 30%," adding, "We will continue our efforts to expand employee compensation."
Referring to how the memory chip industry experienced years of slump before earnings improved sharply due to rising AI demand, he stressed that the company will focus on sustainable growth rather than short-term results.
Wei cited the low birth rate as a concern even more pressing than competitors. "For Taiwan's long-term technological competitiveness, maintaining the foundation of talent supply is more important than anything else," he said. "The most important challenge going forward is securing top talent."
As the AI semiconductor market grows rapidly, competition among companies to secure talent is intensifying. The industry forecasts that how much companies share their results with employees will become one of the key factors in future global technological competitiveness.
