Hsinchu, Taiwan — Workers at Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, are considering strikes and unionization after reports emerged that management plans to cut employee bonuses by up to 15 percent despite the company posting record revenues fueled by surging AI chip demand.
The discontent, reported by Tom's Hardware, marks a rare instance of labor unrest at a company that has traditionally maintained cooperative relations with its workforce. TSMC employees are invoking the example of Samsung workers in South Korea, who successfully organized strikes in 2024, as they contemplate similar action.
According to industry sources, TSMC management is considering the bonus reductions to fund an unprecedented capital expenditure program that includes constructing 12 fabrication plants simultaneously across Taiwan, Arizona, Japan, and Germany. The company's 2026 capex budget is estimated to exceed $40 billion, the highest in the semiconductor industry.
The timing of the proposed cuts has amplified worker frustration. TSMC reported first-quarter 2026 revenue of NT$768.1 billion ($24.3 billion), a 32 percent year-over-year increase driven primarily by demand for advanced AI processors from customers including Jensen Huang's Nvidia, Apple, and AMD. The company's 3-nanometer and 2-nanometer process nodes, essential for next-generation AI accelerators, are running at full capacity with waiting lists extending into 2027.
"Workers are being told to shoulder the burden of expansion while shareholders and executives continue to see gains," one TSMC engineer in Hsinchu told online forums monitored by labor groups. "We understand the need for investment, but cutting bonuses during record profit years sends the wrong message about who built this company."
