TSMC Responds to Bonus Controversy, Promises Over 30% Dividend Growth for Employees

According to Bloomberg, TSMC CEO Wei Zhaojia stated at a staff meeting on Wednesday that he is confident that the average year-on-year increase in profit-sharing bonuses for Taiwan-based employees this year will exceed 30%. Sources close to the matter revealed that this increase will be higher than the previous year.

TSMC confirmed the internal staff meeting was held on Wednesday but did not further comment on Wei Zhaojia's specific statement. The company had earlier this week indicated that the annual employee profit-sharing growth rate based on performance assessment will exceed that of last year.

Previously, DigiTimes reported market rumors that TSMC was considering a reduction of about 15% in performance bonuses, with some employees expressing dissatisfaction on workplace communities, discussing the formation of a union, and even mentioning the possibility of a strike.

This bonus controversy occurs after the company's performance has reached new heights. TSMC's net profit for the first quarter of 2025 reached 572.5 billion New Taiwan Dollars (about 17.9 billion US dollars), a year-on-year increase of 58%, and has more than doubled compared to the same period two years ago. Employees had previously widely expected that the company would allocate about 13% of retained earnings for bonus distribution.

TSMC's employee profit-sharing pool has continued to expand along with the company's profits. The company allocated about 103 billion New Taiwan Dollars for the plan in 2025, a 46.6% increase from the previous year. According to the company's articles of incorporation, at least 1% of profits must be used for employee incentive plans each year.