Taiwan Semiconductor Manufacturing Company (TSMC) is facing growing internal unrest after reportedly reducing employee performance bonuses despite posting record financial results. The development has triggered discussions among workers about forming union-like structures and even possible strike action.
According to reports, employees argue that their compensation does not reflect the company’s strong performance. TSMC recently posted a record first-quarter net profit of 572.5 billion New Taiwan dollars, marking a 58% year-on-year increase, while revenue rose by 35%, driven largely by strong global demand for AI chips.
Despite these results, internal discussions suggest that bonuses could be cut by up to 15%. Employees have expressed dissatisfaction on internal forums and social media platforms, stating that while performance levels are at an all-time high, compensation is reportedly being reduced.
Anonymous posts from employees have also surfaced on platforms like Dcard, with claims that long working hours are not being fairly rewarded and that company profits are being prioritized for shareholders and overseas expansion projects instead of employee benefits.
Some workers are reportedly comparing the situation to recent employee movements in other major tech firms, encouraging collective action such as union formation. There are also discussions about potential strike action, which, if realized, could impact semiconductor production and global supply chains.
Reports further suggest that around 12% of net profits are typically allocated toward employee bonuses, but this balance may be shifting as TSMC increases global investments. The company has already expanded to multiple production bases across the United States, Japan, Germany, and other regions, with several facilities still under development.
As TSMC continues its aggressive global expansion to meet rising demand for AI-related chips, it now faces the challenge of balancing large-scale capital investments with growing employee expectations over fair compensation.
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