TSMC reports big rise in worker pay, benefits

Taiwan Semiconductor Manufacturing Co. (TSMC) reported that its average annual employee compensation reached NT$3.57 million (US$111,000) in 2024, up 44.5% from 2020.

The company’s total compensation and benefits spending rose from NT$140.8 billion (US$4,79 billion) in 2020 to NT$301.8 billion (US$9,40 billion) in 2024.

TSMC said newly hired engineers with master’s degrees at its Taiwan sites and at Visera Technologies, an affiliate it mostly owns, earned over NT$2 million (US$62,320) in total compensation in 2024.

Production and manufacturing employees at TSMC received average compensation above NT$1 million (US$31,160), according to the company.

TSMC added that the monthly income for these employees was over four times Taiwan’s basic wage.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Semiconductor talent war intensifies as workforce ages and shortages loom

TSMC’s dramatic 44.5% compensation increase reflects an industry-wide scramble for talent driven by demographic pressures and projected shortages.

Nearly 40% of the semiconductor workforce is aged 50 and above, creating succession planning challenges as experienced workers approach retirement1.

The industry faces a projected shortage of 115,000 workers by 2030, with 67,000 positions potentially remaining unfilled due to lack of qualified candidates1.

This talent crunch explains why TSMC is paying new master’s degree engineers over NT$2 million annually and manufacturing workers more than four times Taiwan’s basic wage2.

The aggressive compensation strategy demonstrates how leading chipmakers are competing not just on technology but on their ability to attract and retain skilled workers in an increasingly constrained labor market.

2️⃣ Asian chip giants outpace US salary growth in global talent competition

TSMC’s compensation surge significantly outpaces the more modest salary growth seen in the US semiconductor sector.

While average US semiconductor salaries rose from $107,943 in 2018 to $116,254 in 2021—roughly 7.7% growth over three years—TSMC boosted average compensation by 44.5% in just four years3 2.