The artificial intelligence boom has not only reshaped industries but also driven significant investment in technology. While companies like NVIDIA have seen a surge in demand for their GPUs, and memory manufacturers like Samsung have benefited from the need for DRAM and SSDs, TSMC, the world’s leading semiconductor foundry, has also experienced substantial growth. Despite record profits, TSMC’s CEO has indicated that not all employee expectations for salary increases and bonuses will be met, potentially leading to friction similar to that seen at Samsung.
TSMC is instrumental in manufacturing the most advanced semiconductor wafers globally, making it indispensable for major tech players such as AMD, NVIDIA, and Apple. No other foundry can currently rival the Taiwanese giant’s capabilities. Even Samsung, despite achieving 2nm manufacturing ahead of TSMC, cannot compete on the same level. Intel, while making strides, has also struggled to secure the expected customer base.
TSMC CEO Responds to Employee and Bonus Inquiries: Minimum Bonuses Maintained, Lower-Ranked Workers to Benefit Most
Following TSMC’s impressive 58% profit increase in Q1 2026, employees, drawing parallels with Samsung’s situation, had anticipated higher compensation. At Samsung, nearly 50,000 employees participated in a strike. While TSMC did not experience a similar walkout, there were threats of industrial action if compensation did not improve. In a recent interview, TSMC’s CEO addressed these concerns, with his responses likely to be met with mixed reactions.
When questioned about salary discrepancies, specifically why engineers might face salary cuts and reduced bonuses while management sees increases, the CEO stated that he would “have to review it” to achieve a better balance.
Regarding company statutes and bonus distribution, the CEO was firm. TSMC will adhere to the minimum bonus payout of 1%. He further elaborated that salary increases will disproportionately benefit lower-ranking employees, with less impact on senior positions. He also confirmed that there would be no cap on these increases, mirroring a statement made by Samsung. Additionally, the CEO expressed his belief that the construction of new factories and the hiring of new personnel will not negatively affect company profits or bonuses.
CEO Believes TSMC Stock is Undervalued and Refuses to Offer a 10% Bonus Like Samsung
The CEO of TSMC acknowledged the necessity for increased production and continued investment in hardware and software amidst the AI era. Looking ahead, he projected consistent company growth, with a primary objective to “continue increasing dividends to satisfy shareholders and elevate the company’s value.” Notably, a statement from TSMC management suggested that the company’s stock is “undervalued.” They argue that while other companies experience significant growth, TSMC’s market performance does not fully reflect its contributions, particularly their estimated production of 95% of the world’s AI chips.
Addressing the competitive landscape and talent poaching, such as Elon Musk’s offers of double salaries, the CEO expressed no concern, believing these offers are not as attractive as they appear. When the critical question of Samsung’s strike and the resulting 10% bonus payout was raised, TSMC’s stance was clear: they do not agree with those terms and “do not want to offer the 10% that Samsung has given.” He concluded by asserting that the company will continue to grow and does not foresee a decline in revenue. However, he assured that if such a scenario were to occur, he would prioritize “taking care of its employees.”
