Taiwan’s TSMC announces pay increase for fifth year in a row

Employees of semiconductor giant to see monthly pay raised 3 to 5 percent

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TSMC logo (Facebook photo)

TSMC logo (Facebook photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) announced a 3 to 5 percent employee pay raise Thursday (April 30) for the fifth consecutive year.

The entry-level monthly salary for new master's graduate employees will be NT$48,130 (US$1,619), up from NT$46,600 last year. The starting wage for college graduates is NT$32,530, a slight increase of NT$30 from a year earlier, while those without a college or higher-level diploma will be paid NT$30,050 a month, reported UDN.

The pay increase was implemented despite the economic fallout from the Wuhan coronavirus (COVID-19) pandemic. The world’s largest semiconductor foundry is expected to see a 14 to 19 percent growth in revenue, driven by robust demand for 5G related products and high-performance computing devices, wrote NewTalk.

The Taiwan Institute of Economic Research (TIER) released a forecast last week that expected Taiwan’s GDP growth to be at 1.58 percent this year, down 1.09 percent from a previous estimate. While global sales in semiconductor equipment are expected to decline, TSMC has delivered a relatively stellar performance, maintaining capital expenditure for 2020 at around US$15 to 16 billion, according to the report.

TSMC hires around 2,000 new workers each year, 70 percent of whom are individuals aged younger than 30, reported UDN. The company's employees are entitled to a year-end bonus equivalent to two months' salary, among other bonuses, meaning an engineer with a master's degree is paid more than NT$1 million on average a year, said CNA.