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

In a surprising turn of events, Taiwan Semiconductor Manufacturing Company (TSMC) has decided to reduce employee performance bonuses even as it celebrates record-breaking profits. This decision has ignited discussions among workers about taking stronger actions, including the possibility of forming a labor union and going on strike. Despite posting a staggering first-quarter net profit of 572.5 billion New Taiwan dollars—a 58% increase from the previous year—and a 35% rise in revenue driven by heightened demand for AI chips, many employees feel their compensation does not reflect the company's financial success. Reports indicate that TSMC could cut bonuses by as much as 15%, leading to growing dissatisfaction among staff. Employees have voiced their concerns on internal community boards and social media platforms, expressing sentiments like, "performance is at an all-time high, but compensation is actually being reduced." Anonymous posts from TSMC employees on platforms such as Dcard reveal a deepening frustration. Comments like, "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," highlight the growing discontent. In light of these grievances, many employees are contemplating collective action similar to what was seen at Samsung to secure better bonuses. Discussions around forming a union-style movement are gaining traction, with some considering a strike or 'walking off the job.' Such actions could disrupt the semiconductor industry significantly. Analysts suggest that TSMC should allocate approximately 12% of its net profits for employee bonuses. However, it appears that the company may be reevaluating this approach due to pressures from rising global demand and the need to finance extensive overseas capital investments. With operations expanding to 12 production bases worldwide, including the U.S., Japan, and Germany, TSMC finds itself at a crossroads—balancing significant investments while addressing employee expectations.