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TSMC to give extra bonuses to employees this year

TSMC to give extra bonuses to employees this year

Taipei, Oct. 27 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip maker, announced Saturday it will give additional bonuses to its employees this year, as the company is expected to post a record high in earnings. At the company's annual sports event, TSMC Chairman Morris Chang said the company will dole out NT$12,000 (US$410) to each employee -- around 28,000 -- who started working for the chip maker before May 30. Chang's announcement drew roars of approval from company employees at the sports meet, which was held this year to celebrate the 25th founding anniversary of TSMC. Chang said it is the first time that TSMC has issued an additional annual bonus to its employees to allow them to enjoy the benefits of the company's improving bottom line. In the third quarter, TSMC recorded a high in earnings with its net profit up 17.9 percent from a quarter earlier to NT$49.30 billion, while its consolidated sales beat the company's estimate to reach NT$141.38 billion, up 10.4 percent quarter-on-quarter. During the three-month period, TSMC's gross margin stood at 48.8 percent, higher than an expected range of 46-48 percent. The third quarter figure was also 0.2 percentage points higher than the second quarter. Despite fierce competition in the global semiconductor sector, TSMC, which operates 11 wafer plants, including 3 advanced 12-inch wafer plants, is able to repeatedly break its own records in earnings, which is a miracle in the industry, Chang said. He said TSMC's sales are expected to top NT$500 billion for 2012, up sharply from NT$128 million recorded in 1987, when the company was established. According to Chang, over the 25 years, TSMC's employees have enjoyed a leap in their salaries. The average annual salary of the company's employees working on the production lines was NT$133,000 in 1987, but is expected to top NT$600,000 in 2012. The number of TSMC's employees worldwide is expected to reach 36,000 by the end of this year, compared with 285 in 1987. Chang said demand from mobile devices will continue to serve as the driver of TSMC's growth, adding the company is expected to earn US$9 per chip sale to every smartphone in one year, up from the current US$7-8. Earlier this week, the TSMC chairman reiterated the global integrated circuit sector will go through inventory adjustments in the fourth quarter of this year and in the first quarter of next year after a booming period in the third quarter. However, Chang said after the inventory adjustments, the IC business will stage a rebound in the second quarter of next year. After TSMC reported a record high in earnings for the third quarter, Barclays Capital upgraded a recommendation on TSMC shares to "overweight" from "equal weight," and raised a target price on the stock to NT$105 from NT$88. TSMC shares closed up 2.95 percent at NT$87.30 on the Taiwan Stock Exchange Friday, when the benchmark weighted ended down 1.76 percent at 7,134.06 points. (By Jackson Chang and Frances Huang)


Updated : 2021-06-19 14:59 GMT+08:00