TSMC may have avoided sparking widespread anger among its employees, which could have grown into a major strike, similar to what recently happened at Samsung. The Taiwanese chip giant has assured its employees that their bonuses will grow more strongly to exceed last year’s level.
For those uninitiated, a lot of TSMC workers recently expressed their fury in TSMC-related Facebook groups over rumors that the company plans to cut employee bonuses. The CEO’s statement further stoked the fire, as he reportedly said that TSMC’s employee bonuses are too high and create a negative perception in society. He also proposed a 20–30% reduction in bonus payouts, triggering a major backlash from employees.
These comments from TSMC’s CEO come at a time when the company’s financial position has never been this strong. The profits jumped 58% year-over-year in Q1 2026 to a whopping T$572.5 billion ($18.2 billion).
TSMC’s current fabs are not enough to meet the unprecedented demand for high-performance chips, so the company is building as many as 12 different fabs. This requires a huge CapEx, which is believed to be one of the primary reasons the company might be eyeing bonus cuts.
Also read:
1. TSMC pushes toward sub-1nm chips after 1.4nm breakthrough
2. TSMC’s 2nm supply shortage forces smartphone brands to save the best for top-end models amid growing DRAM crisis
TSMC is currently going through its best phase, and it surely can’t afford a strike. Not only will that cost millions of dollars, but it could also halt the expansion of its factories and the ongoing work on advanced nodes. In Samsung’s case, the stock fell 3%, and the government warned that a multi-week shutdown could cause up to $66 billion in economic damage.
TSMC quickly responded to the backlash it received from its employees. Just a few days later, the company issued a two-part statement, acknowledging the hefty contributions of its employees and assuring them that their bonuses would grow at a stronger pace.
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via: Wccftech
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