According to Beating Monitor, TSMC Chairman and CEO C.C. Wei convened an emergency company-wide communication meeting on May 27 to address employee concerns over reduced dividends. In response to online rumors suggesting a more than 10% cut to May dividends, Wei clarified that if employee performance evaluations remain consistent with last year, full-year dividends for 2026 are projected to grow strongly by over 30%, with no cap on distributions, aiming to ease employee discontent fueled by perceived inequities in the benefits of the AI boom. The labor dispute began in mid-May when internal grievances surfaced on social platforms such as Dcard and Facebook. Employees shared screenshots showing that first-quarter dividends were nearly unchanged from the previous quarter, failing to reflect the company’s 58% year-over-year surge in net profits. Rumors even circulated that May dividends could be slashed by 10% to 20%. This came just after Samsung Electronics’ semiconductor division announced a historic agreement granting per-employee dividends of nearly $400,000, prompting TSMC employees to intensify discussions about launching “Samsung-style” protests—including strikes or strict adherence to work hours. Complaints gained momentum after being reported by media outlets such as TweakTown. Wei explained that profit distribution must balance the interests of employees, shareholders, and corporate social responsibility—including ESG initiatives and investments in green energy. Regarding employee demands for structural salary increases, management stated there are currently no plans for such measures, but annual salary adjustments will prioritize frontline staff, ensuring their raises exceed those of managers. Wei also publicly encouraged employees to reinvest their dividends into TSMC stock, promising, “Buying TSMC stock guarantees a secure future,” and emphasized sharing in the company’s long-term growth. TSMC opened its dividend inquiry system on May 27, with dividend payments set to be disbursed on May 29. Meanwhile, the company is simultaneously building approximately 12 new fabs worldwide to advance its 2nm and 1.4nm processes, facing massive capital expenditure pressures—a direct conflict with frontline shift workers’ demands for higher dividends to share in AI-era profits.
TSMC CEO Promises Dividend Growth to Ease Employee Concerns Amid AI Profit Disputes
MarsBitShare
Summary
TSMC CEO Weijhe Hsieh held an emergency meeting on May 27 to address employee concerns regarding potential dividend cuts. He confirmed that 2026 dividends could increase by more than 30% if performance matches 2024 levels, with no upper limit. The dispute followed social media complaints in May about stagnant Q1 dividends despite a 58% profit surge. Inspired by Samsung’s recent agreement, some employees considered strike action. Hsieh outlined a balanced approach among stakeholders, including ecosystem growth and ESG objectives. TSMC opened its dividend inquiry on May 27, with payments due on May 29. The company also reaffirmed its commitment to supporting AI and crypto-related initiatives as part of its long-term strategy.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.