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TSMC pushes next-gen chip expansion while Samsung grapples with union

Published: 04 May. 2026, 19:00 Updated: 04 May. 2026, 19:22

A worker walks past the logo of TSMC, a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on Jan. 29. [AP/YONHAP]

TSMC, the world’s largest dedicated semiconductor foundry, has begun once again moving on a 600 billion Taiwan dollar ($18.9 billion) site-development project for next-generation chip production in northern Taiwan, in what would mark a return to the Longtan expansion plan it dropped in 2023, Taiwanese media reported Monday.

TSMC had originally planned to build a fab for next-generation nanometer-process chips there and begin mass production in 2027, but formally withdrew the plan in 2023 after local opposition.

A public hearing was held recently after the stance of the residents, who have previously opposed the plan, had changed, according to the director of the Hsinchu Science Park Bureau. The bureau is in charge of the Longtan Science Park. The director said a detailed plan would be submitted to the National Science and Technology Council later this month and then sent to the Cabinet after review.

TSMC, which posted record 2025 consolidated revenue of 3.8 trillion Taiwan dollars and net income of $1.7 trillion, is continuing an aggressive expansion drive across Taiwan. The company has set 2026 capital spending at $52 billion to $56 billion, a level roughly comparable to its 2025 net income, effectively reinvesting most of its earnings into production-capacity expansion. TSMC is simultaneously pursuing up to 10 fab construction or expansion projects in Taiwan.

Samsung Electronics is also responding with plans to spend a total of 110 trillion won ($75 billion) this year on capital expenditure and research and development. Still, there is concern that if the company's union’s demand for a bonus equal to 15 percent of operating profit becomes reality, Samsung’s room to invest in facilities and R&D could shrink.

A woman walks past a TSMC building in Hsinchu, Taiwan, on Jan. 29. [AP/YONHAP]

TSMC, which has maintained a nonunion management structure, also distributed about 26.4 million Taiwan dollars per employee, or about 10 percent of last year’s net income, as bonuses. The difference, however, is that the payout was largely one-off and made at the board’s discretion.

“To make use of Samsung Electronics’ strength as an integrated device manufacturer, it needs to reinvest profits earned from memory into foundry and system semiconductors, but if fixed bonuses are paid out, it could end up missing the timing of investment,” Kim Yong-seok, head of Gachon University’s Semiconductor Academy, said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE YOUNG-KEUN [[email protected]]