Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly cut performance bonuses for its employees, a move that has sparked widespread discontent among staff despite the company achieving record profits. Workers are now openly discussing stronger actions, including forming a labor union and potentially going on strike.
The semiconductor giant posted a staggering first-quarter net profit of 572.5 billion New Taiwan dollars (approximately $17.6 billion USD), marking a 58% increase from the previous year. Revenue also surged by 35%, driven by robust demand for advanced AI chips. However, employees argue that their compensation does not reflect the company's booming financial performance.
Employee Discontent Spreads Through TSMC
Reports from internal community boards and social media platforms indicate growing distress among TSMC employees regarding the bonus payouts. Some media outlets suggest that bonus cuts could be as high as 15%. Anonymous posts on platforms like Dcard highlight the sentiment, with employees stating that "performance is at an all-time high, but compensation is actually being reduced."
Further sentiments shared include accusations that the company is "turning its back on employees who work day and night" and that "profits are only being spent on shareholders and overseas plant investments."
Potential Strike Action Looms
The dissatisfaction has escalated to the point where many employees are considering collective actions, drawing parallels to past movements by Samsung workers to secure fair bonuses. Discussions include encouraging a union-style movement and talks of a full-scale strike or "walking off the job." Such industrial action could significantly disrupt the global semiconductor industry, given TSMC's critical role in the supply chain.
Historically, TSMC has been suggested to allocate around 12% of its net profit for employee bonuses. However, the company may be re-evaluating these plans amidst growing pressure to meet global demand and finance its massive global expansion. TSMC is currently expanding its production bases to 12 locations across the United States, Japan, Germany, and other countries, with several still under construction. Balancing these substantial overseas capital investments with rising employee expectations presents a significant challenge for the company.