Taiwan Semiconductor Offers High Salaries to Attract Skilled Engineers

TLDRs:

• TSMC raises average employee pay to NT$3.57 million, a 44.5% increase since 2020.
• New engineers with master’s degrees earn over NT$2 million annually in Taiwan.
• Manufacturing staff at TSMC now receive salaries more than four times Taiwan’s minimum wage.
• Asian chipmakers like TSMC are offering higher pay than US firms to secure talent.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading chipmaker, is significantly increasing employee salaries and benefits as it competes for highly skilled engineering talent in a tightening global labor market.

In 2024, the company reported that its average annual compensation reached NT$3.57 million (approximately US$111,000), marking a striking 44.5% rise from 2020 levels.

Record Pay for Semiconductor Workers

The increase in TSMC’s spending on employee compensation reflects a broader strategy to attract and retain top talent.

Total company spending on salaries and benefits more than doubled over four years, rising from NT$140.8 billion (US$4.79 billion) in 2020 to NT$301.8 billion (US$9.4 billion) in 2024.

Newly hired engineers holding master’s degrees at TSMC’s Taiwan operations and its affiliate Visera Technologies earned over NT$2 million (US$62,320) annually, demonstrating the company’s willingness to offer premium pay for in-demand skills.

Engineering Talent in High Demand

The semiconductor industry is facing a demographic challenge as nearly 40% of its workforce is aged 50 and above, creating potential gaps as experienced employees retire.

With projections showing a shortage of up to 115,000 semiconductor workers globally by 2030, 67,000 of whom may remain unfilled due to a lack of qualified candidates, companies like TSMC are prioritizing talent acquisition and retention.

The generous compensation packages reflect a race among leading firms to secure skilled engineers who can sustain innovation and production in the fast-evolving chip market.

Manufacturing Staff See Strong Gains

Compensation increases are not limited to engineers. Production and manufacturing employees at TSMC now receive average annual pay exceeding NT$1 million (US$31,160), with monthly earnings surpassing four times Taiwan’s basic wage.

This approach underscores the company’s recognition that skilled manufacturing staff are vital to maintaining its leadership in advanced semiconductor production. By offering competitive salaries across the workforce, TSMC is setting a new benchmark in employee compensation in the Asian tech sector.

Asia Outpaces US Salary Growth

TSMC’s aggressive compensation growth significantly outpaces trends in the US semiconductor industry, where average salaries grew only 7.7% over three years, from $107,943 in 2018 to $116,254 in 2021.

The disparity highlights how Asian chipmakers, particularly TSMC, are leveraging their dominant market position and strategic focus on innovation to create premium pay structures. By doing so, they not only attract the best talent but also strengthen their competitive edge in the global semiconductor race.

As the global semiconductor sector faces talent shortages and an aging workforce, TSMC’s bold pay strategy illustrates the increasing importance of human capital in sustaining technological leadership. The company’s approach may serve as a blueprint for other Asian tech giants aiming to maintain growth and innovation in an increasingly competitive market.

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