TSMC Stock Rises Amid Apple Partnership and Strategic EUV Investments
1min read Recent developments surrounding Taiwan Semiconductor Manufacturing Company (TSMC) have drawn significant attention, particularly regarding its strategic collaborations and employee benefits. On December 2nd, TSMC shares rose 5.27%, marking a two-day gain of 7.29%. This uptick aligns with reports of Apple's decision to partner with TSMC for its upcoming M5 chips. These chips, utilizing TSMC’s 3nm process, are anticipated to integrate advanced ARM architecture and SoIC technology for enhanced thermal management and reduced leakage. Initial products containing the M5 might launch by late next year or early 2026.
Additionally, TSMC has made substantial investments in extreme ultraviolet (EUV) lithography equipment, purchasing 35 EUV machines so far and planning to exceed 50 by the end of 2021. This aggressive acquisition places TSMC ahead of competitors like Samsung, which has less than 20 EUV machines. By fortifying its EUV capabilities, TSMC aims to maintain a competitive edge in yield and power efficiency, particularly in its 7nm and 5nm processes.
The industry's demand for EUV lithography machines is expected to escalate in the coming years. Currently, TSMC remains the predominant buyer, with Samsung and Intel following closely. This strategic move ensures TSMC's positioning as a leader in advanced semiconductor manufacturing technologies.
On the employee front, TSMC continues to demonstrate its commitment to staff through generous quarterly bonuses, with some employees receiving up to 3.68 months' worth of additional pay depending on their tenure and level within the company. According to insiders, these bonuses are tied to the company’s profits, varying each quarter, with the most significant payout typically occurring in July. TSMC reported that the median annual salary, exclusive of pension and benefits, reached NT$2.5 million in 2023, reflecting the company's approach to competitive compensation and profitability sharing.
TSMC has repeatedly emphasized that its workforce is its most valuable asset. The company is dedicated to offering compensation and benefits that exceed industry averages, ensuring internal equity and compliance with legal standards. This multi-faceted compensation strategy aims to attract, retain, and motivate personnel, reinforcing TSMC’s market leadership.