TSMC to give NT$468 million in sports day bonuses

Taipei, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, announced in its annual sports day event on Saturday that it will give about NT$468 million (US$15.11 million) in bonuses to its employees.

In the sports day held in Hsinchu, where TSMC is headquartered, company chairman Mark Liu (???) said the chipmaker will dole out NT$12,000 in bonuses to each of the approximately 39,000 employees who were formally employed by the company as of May 31.

The total amount of bonuses, which are expected to be issued by the end of November, will reach about NT$468 million, TSMC said.

It was the first time for Liu to preside over the annual sports day after he succeeded TSMC founder Morris Chang (???) as the chairman following Chang's retirement in June.

Chang stepped down from the position of TSMC's chairman after serving the company for more than 30 years. After his retirement, the company established a "dual leadership" system, in which Liu serves as the chairman of the board of directors and C.C. Wei (???) serves as the vice chairman and the chief executive officer.

Chang did not show up for the latest sports day, but Liu said as long as TSMC continues to perform well next year, the founder will come again.

The sports day is something TSMC's employees look forward to since the management tends to give fat bonuses on that day. This year's figure for each employee stayed unchanged from last year's.

When Liu, Wei and F.C. Tseng (???), who is one of the board members in the company, greeted more than 10,000 participants of the sports day, they received a warm welcome with employees chanting: "Chairman, I love you."

Addressing the sports day, Liu said he and Wei will use the bonuses to express their gratitude to the employees for their contributions to the company.

Liu said due to the efforts made by everyone in the company, TSMC is expected to post a record high in sales and net profit in 2018 and the company will keep up its good work in a bid to record an almost 10 percent year-on-year increase in revenue.

In an investor conference held on Thursday, TSMC lowered its sales forecast for 2018 to 6.5 percent in U.S. dollar terms from an earlier estimate of a 7-9 percent increase. Market analysts attributed the lower forecast to weakening demand for mining devices used for cryptocurrency transactions.

Liu said although TSMC will enjoy a 6.5 percent sales growth in 2018, he was not satisfied with the growth for this year and encouraged all in the company to work hard to boost growth to almost 10 percent in the future.

He said TSMC has made a breakthrough in developing high-end processes and one of the achievements was that the advanced 7 nanometer technology's mass production has been launched.

TSMC is on schedule to push for development of the more advanced 5nm process which could enter production on a trial basis in the first half of next year.

In addition, TSMC has announced a plan to build an advanced 3 nanometer fab in southern Taiwan's Tainan City and the construction is scheduled to start in 2020.

Source: Focus Taiwan News Channel