TSMC has moved quickly to defuse employee anger over potential bonus cuts, assuring workers that their bonuses will grow more strongly than last year.
The Taiwanese chipmaker acted after a backlash erupted over CEO comments suggesting bonus reductions.
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The controversy began when rumors circulated in TSMC-related Facebook groups that the company planned to cut employee bonuses.
The CEO then reportedly stated that TSMC's employee bonuses are too high and create a negative perception in society, proposing a 20–30% reduction in payouts.
These remarks triggered fury among employees, raising fears of a strike similar to the recent walkout at Samsung.
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TSMC's financial position, however, has never been stronger, with Q1 2026 profits jumping 58% year-over-year to T$572.5 billion ($18.2 billion).
The company is building as many as 12 new fabs to meet unprecedented demand for high-performance chips, requiring massive capital expenditure.
This CapEx is believed to be a key reason behind the proposed bonus cuts.
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A strike would be costly for TSMC, potentially halting factory expansion and advanced node work.
In Samsung's case, a strike caused its stock to fall 3%, and the government warned that a multi-week shutdown could result in up to $66 billion in economic damage.
Just days after the backlash, TSMC issued a two-part statement acknowledging employees' contributions and assuring them that bonuses would grow at a stronger pace.
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The move appears aimed at preventing a labor dispute that could disrupt its operations during a critical growth phase.
