Taiwan’s semiconductor-makers to keep traditional bonuses

Taiwan's semiconductor industry pays a traditional bonus of one month's salary each Lunar New Year, according to industry insiders."Our bonus is always two month's salary," Tseng Jin-hao, spokesman for the world's largest maker of made-to-order chips, Taiwan Semiconductor Manufacturing Co (TSMC), said last week."Most companies in the Hsinchu Science-based Industrial Park use the same methodology. One month is paid at Lunar New Year, then a half month at Dragon Boat Festival and Mid-Autumn Festival. It averages out as a 14-month salary package," Tseng said.TSMC's smaller rival, United Microelectronics Corp (UMC), which is also headquartered in the Hsinchu park, offers the same package, an official said."UMC typically offers its employees two months' bonus," spokesman Alex Hinnawi said. "However, this is broken up over the year. I believe it is only one month at year's end."But with both companies in a recruiting drive to staff a recovery in the chip industry, red envelopes may be fatter than expected this Lunar New Year holiday as they encourage existing staff to stay put."Both companies need new talent next year, and putting a little extra in the year-end bonus is the easiest way to keep people," said Primasia Securities analyst George Wu. "I think they will pay more than they have historically to try as hard as possible to keep everyone around."TSMC and UMC announced earlier last week they may need up to 4,000 new workers next year.Employees at chip companies may be wearing broader smiles in May when bigger profit-sharing bonuses are announced."The semiconductor industry pays bonuses according to each corporate charter," said Chris Hsieh, an analyst at ING Securities Ltd in Taipei. "They have a bonus pool which is the equivalent of a percentage of profit after deducting a 10-percent legal fee." Source: Taipei Times