TSMC employees angered by layoff, bonus cut rumors despite record profits - upi.com

Despite record-breaking first-quarter earnings, TSMC employees are reportedly angry over rumors of layoffs and bonus cuts. The company posted a 40.6% year-over-year revenue increase and a 58% surge in... Read original →

Despite record profits, TSMC’s rumored workforce adjustments reveal hidden cost pressures from its advanced-node race. Technically, slower-than-expected 3nm/2nm yield ramp and surging localized R&D expenses in Arizona and Kumamoto are squeezing compensation budgets. This undermines engineer loyalty—the very asset underpinning EUV and 3D packaging innovation. Governance risks rise as highly paid staff in Taiwan, China demand greater bonus transparency, despite the absence of formal unions. Samsung Electronics may exploit this by intensifying talent retention offers, especially in HBM and GAA transistor domains. Over the next 18 months, if TSMC fails to align global capex with internal equity, it risks losing top talent to Intel or domestic mature-node foundries, eroding its dominance in the AI chip manufacturing ecosystem.