TSMC employees angered by layoff, bonus cut rumors despite record profits

May 25 (Asia Today) -- Employees at Taiwanese semiconductor giant TSMC are reportedly growing increasingly frustrated over rumors of layoffs and bonus cuts despite the company posting record first-quarter earnings.

According to Beijing-based sources familiar with Taiwan's economy, TSMC delivered what analysts described as extraordinary results in the first quarter of this year.

Revenue rose 40.6% year-over-year to 1.134 trillion New Taiwan dollars, equivalent to about $35.9 billion or 55.6 trillion won. Net profit surged 58% to 572.5 billion New Taiwan dollars (about $17.9 billion USD), significantly exceeding market expectations of 543.3 billion New Taiwan dollars (about $17 billion USD.)

Both revenue and net profit reached all-time highs, marking what market observers described as a major earnings surprise.

Under ordinary circumstances, many of TSMC's roughly 78,000 Taiwan-based employees would likely expect generous performance bonuses, including additional payouts beyond the first half of last year's bonus package scheduled for distribution in July.

Instead, rumors have spread across employee social media networks claiming the company could reduce headcount and cut bonuses estimated to average about 1.32 million New Taiwan dollars per employee (about $42,000 USD.)

Some online posts have even claimed layoffs of around 5% and bonus reductions of up to 15%, fueling growing anger among workers.

TSMC management has not issued an official response to the rumors.

Taiwanese media outlets have nevertheless suggested the speculation may not be entirely groundless, citing the company's simultaneous construction of new semiconductor plants across 12 regions worldwide, the massive investment burden associated with those projects, rising research and development costs and shareholder pressure for continued returns and dividends.

Some employees have begun openly discussing possible collective action online, referencing the recent labor dispute at Samsung Electronics.

Posts on social media included comments such as, "Our fate will also be decided on the 27th," apparently referring to Samsung Electronics workers' vote on a tentative wage agreement, and "Why can't we strike too? It's not illegal."

Still, analysts say a coordinated strike at TSMC would be difficult because the company does not have a formal labor union structure.

Public support for industrial action may also prove limited.

TSMC employees are estimated to earn roughly five to six times more than the average Taiwanese worker, making it difficult for the broader public to sympathize with complaints over bonus reductions.

A Taiwanese businessman in Beijing, identified as Feng Mengrong, said TSMC employees already receive exceptional compensation.

"If TSMC employees go on strike over performance bonuses, they will face enormous public criticism," he said, adding that many people would view the complaints as socially divisive.

Taiwanese media outlets have similarly criticized discussions of strike action, arguing that TSMC employees appear to be "complaining despite being highly privileged."

-- Reported by Asia Today; translated by UPI

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This story was originally published May 25, 2026 at 8:37 PM.