TSMC Considers Providing Employee Stock Purchase Subsidies for the First Time Since Founding

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Taiwanese semiconductor foundry (contract manufacturing) company TSMC is reportedly preparing a plan to provide employees with subsidies for purchasing company shares as a measure to retain talent.

On the 19th, Liberty Times cited industry sources reporting that TSMC is preparing a company stock purchase subsidy system for all of its approximately 50,000 employees to attract semiconductor talent and prevent turnover. Employees will purchase company shares monthly with a certain amount deducted from their salaries, and the company will partially support this. Industry insiders expect that TSMC will provide subsidies up to 15% or less of the amount of company shares purchased by employees starting in July.

Liberty Times explained that if this plan is implemented, it will be the first time since TSMC’s founding in 1987 that the company provides subsidies for employees’ purchase of company shares. This is seen as a way to boost the stock price while strengthening employee cohesion, and TSMC is expressing optimistic prospects for future performance, Liberty Times added. TSMC told Liberty Times that details are currently under discussion and that the matter will be discussed at the board meeting scheduled for next month.

Earlier, TSMC undertook a comprehensive improvement of the wage structure for executives and employees last year, raising salaries by about 20%. It is known that the average annual salary of new engineers with a master's degree reaches 2 million Taiwan dollars (approximately 84.44 million KRW). Considering global inflation and the shortage of semiconductor talent, TSMC reportedly decided on an average wage increase of 8% this year, higher than the usual 3-5%.

TSMC plans to invest up to 40 to 44 billion USD (approximately 54.3 trillion KRW) this year to establish new factories in Arizona, USA, and Kumamoto Prefecture, Japan, and to expand production facilities in central and southern Taiwan. It is also expected to hire about 8,000 employees this year.

This content was produced with the assistance of AI translation services.