Home > World > World

Not just Samsung: Workers at TSMC also questioning bonus system in wake of record profits

Published: 25 May. 2026, 17:01

A woman walks past a Taiwan Semiconductor Manufacturing Company (TSMC) sign at the Hsinchu Science Park in Hsinchu on July 5, 2023. [AFP/YONHAP]

Samsung Electronics employees voiced their frustration over SK hynix’s operating profit-linked bonus system over the past several months, with Samsung's union coming very close to enacting a full-scale strike before reaching an 11th-hour compromise last week. Now similar discontent appears to be brewing among TSMC employees in Taiwan.

As the semiconductor industry enjoys an unprecedented winning streak from the current chip supercycle, the industry is increasingly growing divided over how companies should balance aggressive investment expansion with profit sharing.

The latest news from Taiwan follows speculation circulating within TSMC that annual bonuses for 2025, scheduled to be paid in July, could be reduced by as much as 15 percent per employee compared to earlier expectations as the company ramps up overseas investment spending, according to Taiwanese outlets Liberty Times and China Times on Monday.

The rumors have fueled frustration among employees despite TSMC posting strong first-quarter results.

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

At TSMC, decisions regarding investment scales, shareholder dividends and employee compensation are made by the board of directors. Annual bonuses are funded through at least 1 percent of operating profit, as determined by the company’s Compensation and People Development Committee, which consists of four outside directors.

In February, TSMC’s board approved a total annual bonus pool of 206.15 billion Taiwan dollars ($6.5 billion), or about 10.6 percent of operating profit, for 2025.

Local reports estimated that each employee could receive an average bonus of roughly $2.64 million Taiwan dollars based on the company’s work force of around 78,000 employees.

TSMC typically distributes annual bonuses in five installments through July of the following year. Employees had already received quarterly cash bonuses equivalent to around 5 percent of operating profit last year and are expected to receive the remaining balance in July based on the bonus pool finalized in February.

SK hynix's headquarters as seen on April 23. [YONHAP]

Employees, however, have criticized the company’s opaque bonus calculation and distribution system. Unlike Samsung Electronics or SK hynix, TSMC does not publicly disclose individual bonus amounts, meaning actual payouts can vary depending on employee headcount and department-level performance indicators at the time of payment.

Employees believe the company may tighten departmental performance evaluations to effectively reduce bonuses by as much as 15 percent in order to secure funding for overseas expansion projects. TSMC has not issued an official response to the speculation.

Much of the backlash stems from the perception that the company is attempting to cut employee compensation despite soaring profits.

TSMC announced on April 16 its first-quarter revenue of $1.13 trillion Taiwan dollars and net profit of $572.48 billion Taiwan dollars. Revenue rose 35.1 percent and net profit jumped 58.3 percent, compared to the same period last year.

Labor Minister Kim Young-hoon, center, Samsung Electronics' management negotiator Yeo Myung-koo, left center, and Choi Seung-ho, right center, head of the Samsung Electronics chapter of the Samsung Group United Union, shake hands after signing a tentative wage agreement. [YONHAP]

Criticism of the company has spread across anonymous online communities used by TSMC employees.

“The company changing promised bonuses whenever it wants is exactly the same kind of internal management it has always practiced,” an employee said. “There’s not even a trace of trust.”

Another said, “Employees work themselves to the bone every day under enormous pressure, and now the company wants to cut bonuses just to fill shareholders’ pockets?”

Some employees have also pointed to Samsung Electronics’ labor negotiations and strike authorization votes as a possible model for collective action.

Posts on Facebook communities such as “TSMC Big and Small Matters” (translated) have referenced Samsung Electronics’ wage negotiation vote deadline on Wednesday, with comments including, “The truth will come out on the 27th” and “It’s time to strike now.”

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 KIM KYUNG-MI [[email protected]]