"Let's strike like Samsung too"... TSMC employees in Taiwan grow increasingly angry

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[Financial News] Rumors of a cut in performance-based bonuses are spreading among employees of Taiwan Semiconductor Manufacturing Company Limited (TSMC), fueling internal backlash. The company continues to post record-high results on strong demand for artificial intelligence (AI) chips, but some employees are even talking in online communities about "going on strike like SEC." However, TSMC has not officially confirmed whether bonuses will be cut or by how much. TSMC is the world's largest semiconductor foundry company, with about 70% of the global foundry market.
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On the 23rd, TVBS reported that rumors of a reduction in employee bonuses were spreading across TSMC-related Facebook communities and anonymous workplace forums. Some posts reportedly claimed that the company was planning to cut employee bonuses by as much as 15%.
TechNews also covered the controversy on the 24th, reporting that employees responded with comments such as "Let's strike like SEC" and "Let's form a union." Some workers voiced concern that the company's compensation standards were being changed, while others criticized a work culture in which they receive messages at night and on weekends.
The rumor of a bonus cut remains unconfirmed. Huaxi Daily reported on the controversy on the 24th and said TSMC had not yet issued an official statement.
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The backlash stems from TSMC's strong earnings. According to its first-quarter 2026 results announced on the 16th of last month, revenue came to NT$1.1341 trillion and net profit reached NT$572.48 billion. Revenue rose 35.1% from a year earlier, while net profit jumped 58.3%.
AP also reported that TSMC posted a record quarterly net profit of NT$572.5 billion for the first quarter. Demand for AI lifted results, and TSMC projected second-quarter revenue at between $39 billion and $40.2 billion.
The total bonus pool is already enormous. According to the Central News Agency (CNA), the TSMC Board of Directors approved a total of NT$206.14592 billion in employee bonuses and profit-sharing for 2025 in February. That is equivalent to about 996 billion won. Based on TSMC's roughly 78,000 employees in Taiwan, the average comes to NT$2.6428 million per person, or about 128 million won.
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TSMC employees brought up Samsung Electronics because the recent labor-management negotiations at SEC have drawn attention from the global semiconductor industry. Tom's Hardware reported on the 21st, local time, citing major foreign media, that Samsung Electronics may pay a large bonus to semiconductor division employees under a tentative agreement with the union.
As a result, online communities in Taiwan have been filled with posts saying SEC's labor dispute should be used as a reference. Even at TSMC, which has long been known for generous compensation, complaints about pay standards and profit distribution are now surfacing publicly.
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TSMC's compensation system goes through board approval. The TSMC 2024 Annual Report says employee bonuses and profit-sharing are determined based on company performance and industry practices in Taiwan, then approved by the board after recommendations from the Compensation Committee. Individual payouts vary depending on job role, contribution, and performance.
The key question now is whether the cut will actually happen. Taiwanese media have reported employee reactions and the 15% cut rumor, but the company has yet to make an official announcement. With TSMC's strong earnings, expanded overseas investment, and the Samsung Electronics labor-management negotiations all converging, the bonus dispute is likely to remain a major issue in Taiwan's semiconductor industry for the time being.
hsg@fnnews.com Han Seung-gon Reporter