TSMC CEO’s remarks to TSMC employees regarding bonuses

Q: Why are engineers taking a pay cut (smaller bonus) while VPs and above are getting stock — effectively a raise? A: I'll have to go back and look into the relationship between the two.
Q: The articles of incorporation stipulate that profit-sharing must be no less than 1%. If the company keeps cutting it down toward 1%, can the articles be amended to protect employee rights? A: No.

Q: Last time, the compensation restructuring was "cut the bonus, raise base salary." This time you're cutting the bonus again — will base salaries go up? A: Future raises will be larger for lower job grades and smaller for higher ones.
Q: Is there a ceiling on compensation? A: There is no ceiling.

Q: (The questioner's logic was unclear. The gist was questioning whether overexpansion of fabs and headcount is diluting the bonus pool.)
Q: The bonus isn't increasing with EPS, but you mentioned earlier that the employee birth rate is 5x Taiwan's average. That doesn't add up. Shouldn't the company follow the government's lead and have the company raise the kids? A: Not possible.

Q: Rather than putting that money into green energy investments, why not pay it out to employees, or at least restrict it to charitable donations? A: Not possible.
Q: Even in downturns, the money doesn't get returned to employees. Wouldn't it be better to spend it on improving company benefits? A: The money doesn't get redistributed that way.

Q: Since you're developing AI, can we use fewer people and pay out more in bonuses? A: I'm working on it.

Q: Can we spend more on software and hardware equipment? A: Yes.
Q: Will ETE (equipment-related roles) get raises? A: I'll go back and check. They should be increasing.

Q: You said you can't keep sustaining 1.3x growth — is that because you're seeing some operational red flags down the road? A: There are no red flags.
(Management interjects) Complains that other companies' stocks are pumping for no good reason, and that TSMC's stock is severely undervalued. 95% of the world's AI chips are made at TSMC — please keep up the good work, everyone.

Q: Elon Musk is offering 2x salary to poach our people. Aren't you worried? A: First, I'm not worried. Second, do you really believe Musk? Do you believe you can smoke cigars like he does?
Q: Anything on the financials going forward? A: We're considering continuing to increase the dividend.

Q: Looking at the Samsung strike, TSMC's profit-sharing ratio has already dropped to 10%. Can you guarantee that at least 10% will continue to be distributed to employees going forward? A: No. The DRAM industry "earns in one year and lives off it for ten" — it's a different industry, not comparable.
Q: Do you support employees forming a union? A: If a union is formed, management has to spend a lot of energy dealing with it, so I don't encourage it. You're already getting this much in bonuses — why would you want a union?

Q: What if business turns south in the future? A: That's not a scenario we're assuming. But if the global economy really did collapse, management would take care of its people.

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