TSMC unveils three strategies to retain talent amid industry shortage

The semiconductor industry has relied on various retention and recruitment measures amid a growing talent shortage.  

Like in previous years, TSMC plans to make a substantial salary structure adjustment this year and provide subsidies to its employees to purchase some newly issued company shares to help them acquire public housing. 

TSMC aims to recruit more than 8,000 people this year amid reports of stock purchase subsidies for employees who will also be able to deduct a certain amount from their monthly income to buy company shares. 

TSMC has subsidized employees to buy company shares for the first time. The board of directors will reportedly discuss details of the plan next month. 

The world’s biggest contract manufacturer of chips carried out a comprehensive structural salary adjustment last year, with a 20% pay increase, raising the monthly fixed salary of junior staff. 

TSMC increases annual salaries in April every year. The company could consider global inflation and the semiconductor talent shortage this year, before announcing an average salary increase of about 8%, significantly better than the 3-5% in previous years. 

For senior executives, TSMC has also implemented a new stock acquisition scheme based on each employee’s rights for the first time this year and adopted a compensation scheme that links shareholder interests with ESG performance. 

In related news, TSMC’s senior executives have reportedly made several gifts to their family members over the past year or two. 

On March 19, Senior Vice President of Operations Y.P. Chin declared the transfer of 2,000 shares to his wife, Chen Chin-lan. 

At the end of March, TSMC senior vice president of Europe and Asia sales Lora Ho also gave TSMC shares to her husband, Liu Chung-han, and their daughter, 170 shares and 738 shares, respectively. 

TSMC CEO C.C. Wei also transferred 1,000 shares to his wife, Niu Ching-long, in October last year. In December, he also declared the transfer of 600 shares to his three sons, Wei Ta-Tung, Wei Chia-Chia and Wei Da-hsiung. 

TSMC Director Tseng Fan-Cheng announced in December last year that he would transfer 5,000 shares of TSMC to his wife, Chen Han.