TSMC's employee bonuses expected to grow over 30% this year: Source

Taipei, May 27 (CNA) Taiwan Semiconductor Manufacturing Co., Chairman C.C. Wei (魏哲家) was cited by an anonymous source as saying Wednesday that employee bonuses are likely to grow over 30 percent this year, in line with the past few years as the company's profits continue to set new records.

Speaking with the company's employees at a meeting held Wednesday morning, Wei said TSMC, the world's largest contract chipmaker, is committed to taking care of its workers, while expressing gratitude to employees for their contribution to the company's improving bottom line, the source told CNA.

Since 2023, TSMC's employee bonuses have grown at an annual rate of 30 percent or more and as long as employee performance stays strong, annual bonuses for this year are expected to grow at a similar pace, the source quoted Wei as saying.

The meeting with employees was scheduled after recent viral online speculation that TSMC would adjust its employee bonus distribution mechanism by cutting this year's bonus payout, in a bid to keep more funds on hand to meet the company's plans to aggressively expand production.

Local media reported that rumors of cuts to bonuses had made many employees unhappy.

According to the reports, Wei cancelled a business trip scheduled for Wednesday and arranged the meeting to ease the concerns of employees.

Wei told employees that TSMC's earnings distribution aims to satisfy workers and shareholders and fulfill the company's social responsibility, the source added.

He also noted that TSMC will pay more attention to its social responsibility by allocating more earnings to help society, adding that salary growth for TSMC's entry-level employees would outpace the growth for senior employees, according to the source.

In February, a board meeting approved a proposal to designate a record high NT$206.15 billion (US$6.53 billion) in the form of employee performance bonuses and profit sharing bonuses for 2025, after the company posted a new high of NT$1.72 trillion in net profit, up 46 percent from a year earlier.