TSMC to subsidize employee company share purchases

Taipei, April 19 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is planning to provide subsidies to its employees to purchase the company’s shares, the semiconductor giant said Tuesday.

To attract and retain employees, TSMC is set to launch the share purchase subsidy scheme for its 50,000 employees later this year, according to a report published by The Liberty Times Tuesday.

Under the scheme expected to take effect in July, TSMC employees can have an amount deducted from their monthly salary to buy the company’s shares, while the company will offer subsidies of up to 15 percent to employees for those purchases, according to the report.

TSMC confirmed the news report Tuesday, saying that discussions were underway about the subsidy program and that details such as the subsidy rate will be determined during the company’s board meeting next month.

The subsidy scheme aims to create a more diverse employee reward strategy and allow employees to benefit more from the company’s business performance, the company said.

This is the first time TSMC has decided to subsidize employees in buying its shares.

In an effort to increase employee benefits commensurate with its business growth, TSMC has issued employee-restricted shares to senior executives and top professionals over the past few years and implemented a 20-percent increase in regular salaries for employees in 2021.