TSMC cuts employee bonus despite record earnings; Staff likely to go on strike

From layoffs, low appraisals, to bonus cuts, artificial intelligence (AI) is revamping the workplace in ways employees can no longer ignore. Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly cut the performance bonuses of its employees despite record profits. Due to this reason, several workers are discussing stronger action like forming a labour union, and potentially going on strike.

Employees are arguing that they are not being rewarded fairly, and it does not match the company’s booming financial performance. TSMC recently posted a record first-quarter net profit of 572.5 billion New Taiwan dollars, up 58% from last year, while revenue surged 35% amid strong demand for AI chips.

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TSMC bonus cuts

According to a Seoul Economic Daily report, employees have been sharing distress about the bonus payout at TSMC's internal community boards and social media

According to Media reports, it is suggested that TSMC could cut employee bonuses by up to 15%. Concerns over pay are spreading within the company, with employees stating that "performance is at an all-time high, but compensation is actually being reduced."

In addition, several posts have appeared on Dcard by anonymous TSMC employees, stating "The company is turning its back on employees who work day and night," and "Profits are only being spent on shareholders and overseas plant investments."

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Many employees are reportedly considering stricter actions, similar to what Samsung employees did to get decent bonuses. Many are encouraging the formation of a union-style movement. Some are talking about going on strike or “walking off the job”. If it goes further, the strikes could disrupt the industry.

It is suggested that TSMC allocate approximately 12% of its net profit for employees as bonuses. However, it may have changed plans amid growing pressure to meet global demand and expectations amid growing pressure.

The semiconductor giant has also expanded to 12 global production bases across the United States, Japan, Germany, and other countries, and some are still under construction. Now, as it expands its global reach, TSMC is forced to balance massive overseas capital investments while meeting rising employee expectations.