TSMC, a leading foundry, issued a notice of base salary adjustment to employees on April 24, the average salary increase this year amounted to 4% to 5%, lower than last year’s nearly 10% and is expected to be seen in the 25th incoming salary.
According to Taiwan media “United News” news, TSMC internal staff discussion forum, some employees complained that the company does not adjust the capital expenditure this year, instead of reducing the rate of salary adjustment, but also said that competitors Samsung and Intel are not so petty.
But then a senior employee hit back, capital expenditure is for the company’s long-term development, if not to expand production capacity, the future will lose the momentum of profit growth, “the upper echelons of the vision, the grassroots only look at the immediate”, instead of complaining about the salary adjustment range is not enough, why not work hard.
A TSMC spokesman confirmed that the company has finalized its salary increase this year, but would not disclose the rate of the increase.
TSMC said it conducts annual routine salary increases every year, and in 2021, to meet the demand of employees who want to convert part of their dividends into their monthly salaries, it will conduct a structural salary increase of up to 20% in 2021, and the annual routine salary increase in April 2022 will be nearly 10%.
With the decline in the semiconductor economy, TSMC expects revenue to decline for two consecutive quarters this year but still reflects the continued rise in prices and other inflationary factors, TSMC finalized this year’s salary increase of about 5%, the range is lower than last year, the actual rate of adjustment is still dependent on individual performance, seniority and grade differences.
TSMC released its Q1 earnings, with revenue of NT$508.63 billion (currently about RMB114.442 billion), up 3.6% year-on-year and down 18.7% sequentially, and net profit of NT$206.9 billion (currently about RMB46.552 billion), up 2.1% year-on-year and down 30% sequentially, exceeding market expectations, but this was the smallest increase in four years. This was the smallest increase in four years.
TSMC expects Q2 sales to be US$15.2 billion to US$16 billion; it expects Q2 gross margins to be 52-54% and forecasts full-year capital expenditures of US$32 billion to US$36 billion, with no investment cuts compared to rumours.
In addition, TSMC has recruited 8,000 people for the second year in a row. TSMC has also launched this year’s recruitment drive, with 6,000 new employees to be recruited from outside.