Despite posting strong results in the first quarter of this year, Taiwan's TSMC, the world's No. 1 global foundry (semiconductor contract manufacturing) corporations, is facing rising employee discontent amid rumors of bonus cuts. Some say the company should go on strike like Samsung Electronics in Korea.
According to a recent report by Taiwan's financial outlet Liberty Times Finance, TSMC's first-quarter revenue this year rose 35% from a year earlier, and net profit surged 58% to 572.5 billion Taiwan dollars (about $18.2 billion, about 26.8 trillion won). That was an earnings surprise that far exceeded the market forecast of 543.3 billion Taiwan dollars.
In contrast to the strong results, rumors that employee bonuses at TSMC could be reduced have been spreading quickly on social media, including TSMC-related Facebook pages. Some even claimed the specific cut could be as much as 15%. TSMC's official bonus payment policy has not been finalized or disclosed.
Local media analyzed that the main background of the latest bonus-cut rumors is TSMC's simultaneous construction of 12 new semiconductor plants around the world, including in the United States, which is requiring massive capital outlays.
Employees are reacting angrily on social media to news that compensation could be reduced despite strong performance.
One employee said, "The company changes everything at will, like its internal management style," and added, "There is no conscience at all." Another said, "Employees work nonstop every day, but bonuses for employees are being cut for shareholders," raising their voice. Expressing fatigue from the intense workload, a post also demanded blocking the work platform: "In that case, make Teams turn off automatically on weekday evenings and weekends."
Reporting this news, Liberty Times Finance also highlighted that a vote on the tentative wage agreement by the Samsung Electronics union in Korea closes on the 27th.
Although TSMC is revered in Taiwan as "Hoguk-sinsan (a sacred mountain that protects the nation)," a current is emerging among internal staff that sympathizes with the labor movement at Samsung Electronics. Some TSMC employees, seemingly mindful of Samsung's voting schedule, posted comments such as "The real verdict comes on the 27th," "Is it illegal if we push for a strike?" and "It's time to go on strike," hinting at the possibility of collective action.