Will TSMC Cut Employee Bonuses by Up to 30%? The Company Responds and Surprises Everyone

Recent rumors about possible cuts to bonuses have generated strong internal tensions at TSMC, with numerous employees expressing their dissatisfaction online following statements from the CEO of the Taiwanese company. The manager had indeed described the current performance-linked bonuses as "too high," suggesting a reduction of between 20% and 30%.

The CEO's words immediately fueled employee concerns, especially as they came during a particularly positive financial phase for the semiconductor giant. In the first quarter of 2026, TSMC recorded a yearly profit increase of 58%, a true record for the company.

At the same time, the company has increased investments to expand its production capacity. TSMC is building 12 new factories with the goal of consolidating technological leadership in 2nm production processes and future A14 nodes at 1.4nm. The high capital requirements for these plants had led some employees and observers to consider a scaling back of economic incentives plausible.

#TSMC issued a two-point statement today (May 25) to clarify that employee profit-sharing bonuses have not been reduced this year. The company stressed that it is confident full-year bonus growth will exceed last year's level in 2025. TSMC said it greatly appreciates employees' contributions.

A few days after the controversy erupted, however, TSMC issued an official communication structured in two points. The company acknowledged the crucial contribution of its employees to the achieved results and assured that bonuses will grow at a rate higher than that recorded in 2025.

The decision clearly aims to preserve internal stability at an extremely delicate moment for the advanced semiconductor market. The goal is to maintain a steady supply and a reliable supply chain in a sector where competition is advancing.

On one side, there is Samsung, which represents the main competitor in the foundry space for fabless chip manufacturers. On the other side, there is Intel, currently a TSMC customer, but which is developing plans to return to in-house production and formulating an offer for third-party production.

For TSMC, therefore, it is crucial to ensure stability for its customers and avert interest towards competitors that, besides potentially offering a better price, would also have the advantage of greater production reliability in times of tension.