Key Insight
Taiwan Semiconductor Manufacturing Company (TSMC) faces a critical labor shortage with over 34,000 semiconductor industry jobs unfilled as of May 2025, driving the company to invest heavily in talent development and compensation to sustain industry leadership.
Background:
Taiwan’s semiconductor industry, led by TSMC, has seen rapid expansion fueled by advanced chip demand, but this growth has resulted in a labor shortage of 34,000 workers by May 2025, impacting production, R&D, and technical support roles. This shortage has pushed TSMC to delay new fabrication facilities and implement intensive training and recruitment initiatives to address the talent gap.
Top Three Reasons This Matters:
1. The semiconductor talent shortage directly threatens industry growth with a 67% increase in job openings for operations and maintenance roles between October 2023 and May 2025, making talent acquisition a top priority for sustaining innovation and production capacity.
2. TSMC’s substantial investment in compensation and training reflects the high stakes of the labor gap, as the company spends billions yearly on employee benefits and recently reported over a 44% increase in average annual compensation since 2020.
3. The shortage has broader implications beyond Taiwan, as TSMC’s experience highlights global challenges in semiconductor manufacturing talent, influencing international strategies for workforce development and geopolitical supply chain resilience.
Credit perplexity
https://www.perplexity.ai/page/tsmc-raises-worker-pay-44-5-to-GSyguxzFRZyIxVyNSiI_uQ