TSMC CEO Projects Over 30% Profit-Sharing Boost After NT$572.5 Billion Quarter
TSM•TSMC CEO C.C. Wei told Taiwan-based employees they could see more than a 30% year-over-year increase in profit-sharing payouts this year. The company reported NT$572.5 billion in March-quarter earnings, lifted gross margin to 66% and expanded its profit-sharing pool to NT$103 billion in 2025, up 46.6% from the prior year.
1. Profit-Sharing Increase Announcement
During a private town hall, CEO C.C. Wei informed Taiwan-based employees that profit-sharing payouts could rise by over 30% year on year, addressing online concerns about incentive plans and signaling confidence in the company’s profit trajectory.
2. Strong Q1 Financial Results
TSMC posted NT$572.5 billion ($18.2 billion) in March-quarter earnings—more than double the level from two years earlier—and lifted its gross margin to 66%, while its employee profit-sharing pool expanded to NT$103 billion in 2025, a 46.6% increase from the prior year.
3. Rising Labor-Cost Expectations
As AI-driven demand boosts profitability, internal expectations for higher incentives are climbing; elsewhere, Samsung’s chipmaking group agreed to roughly $27 billion in bonuses, highlighting potential pressure on TSMC’s labor expenses despite its lack of organized unions.
4. Industry Implications
The pledge underscores TSMC’s disciplined long-term strategy but also suggests that sustained AI investment may drive up operating costs, making employee compensation a key factor for margin management and investor sentiment moving forward.
