Talent Attraction and Retention

TSMC is steadfast in its commitment to sustainability, and strives to be a world-class company in environmental protection.

TSMC emphasizes "Right People with Shared Vision and Values" and reinforces employees' identification and implementation of core values. We plan benefit programs which fit employees' needs. Through a variety of human resources practices, our employees can bring all their potential into full play in the right position, which contributes to a win-win situation for both our company and employees.

Strategies, Targets & Achievements

Strategies
  • Bolster Employee Commitment
    • Promote and fulfill TSMC's core values
    • Provide competitive compensation packages
    • Maintain a healthy turnover rate
  • Strengthen Industry-academia Collaboration Through TSMC Campus Programs
2019
2020
2030

Right People with Shared Vision and Values

Character and qualifications are the most important criteria for talent selection at TSMC. In order to ensure the quality of recruitment, we developed a set of selection criteria, including integrity, resilience, perseverance, initiative, innovation, judgment and etc. Besides professional skills, all applicants shall be evaluated by the selection criteria assessment and structured interviews to ensure we find the right people with shared vision and values.
TSMC conducts a biennial survey to understand how well the Company's core values are put into practice and the engagement level of the employees, with the goal to strengthen two-way commitment between the Company and its employees.

Survey Results on Employee Perception of Core Values

Note: The five point Likert Scale was employed in the questionnaire

"Commitment" Questions from the Employee Opinion Survey on Company Core Values

Note 1: The Employee Opinion Survey On Company Core Values is composed of five subscales. The highest score, 5 points, indicates that the surveyee "strongly agrees" with the question while the lowest score is 1 point. Among the respondents, the number of employees who answered 4 points (agree) and 5 points (strongly agree) totalled 40,511, which is 98% of the total 41,390 respondents
Note 2: The Employee Opinion Survey On Company Core Values is composed of five subscales. The highest score, 5 points, indicates that the surveyee "strongly agrees" with the question while the lowest score is 1 point. Among the respondents, the number of employees who answered 4 points (agree) and 5 points (strongly agree) totalled 39,875, which is 96% of the total 41,390 respondents

Benefit Practices which Exceed the Statutory Requirement

TSMC provides competitive compensation packages for attracting and retaining the best talent. Our total compensation includes base salary, allowance, employees' cash bonus and profit sharing bonus. Beyond statutory benefit requirements, TSMC offers additional benefit programs which fit employees' needs, such as holidays, insurance plan, pension plan, financial assistance for employees who encounter difficult circumstances, subsidies for marriage, childbirth, and funerals, or discounts provided by designated vendors.
Item Labor Law Practices which Exceeds the Statutory Requirement
Holidays 12 national holidays per year 12 national holidays and 7 additional memorial days
Annual Leave 3 days for new hires with more than 6 months and less than one year of employment In order to take care of newly hired employees, 1 day annual leave for every 2 months of service in the first year
Sick Leave 30 days of half-paid sick leave per year 120 hours fully-paid and 120 hours half-paid sick leave per year
Personal-affairs Leave 14 days of personal-affairs leave per year In addition to personal-affairs leave, employees are entitled to 90 days of special personal leave with approval by authorized supervisors if they have important personal affairs
Insurance Plan Employee shall be covered by the Labor and National Health Insurance from the first day on board

In addition to the Labor Insurance and National Health Insurance, TSMC provides comprehensive group insurance plans to employees free of charge. Coverage includes life insurance, accident insurance, hospital insurance, cancer insurance, and business travel insurance. Besides, employees have the flexibility to participate in group insurance plans for their families at lower price.

The group insurance coverage is extended free of charge to employees on unpaid leave for purposes identified by labor law.

The group insurance plans that VisEra provides is somewhat different from those mentioned above. VisEra provides group insurance for employee's family free of charge, and group insurance for six months free of charge to employees on unpaid leave for purposes identified by labor law.

Nursing Staff 57 staff in accordance to the number of company employees In addition to meeting the statutory standards, TSMC partners with hospitals to assign 50 nursing staff to provide TSMC employees with emergency care and health management services.
Health Examination Depending on age: Once a year for employees above age of 65. Once every three years for employees between 40 to 64. Once every five years for employees under 40. Once a year for all ages
Counseling Services None Free psychological, legal, or financial counseling services.
Note: TSMC's overseas offices designed leave and insurance systems that comply with local regulations. In terms of the leave system in China, North America and Europe, there are more leave days than local statutory requirements. As for insurance programs, the comprehensive life and medical insurance programs are also designed in consideration of the local regulations and employee’s needs in accordance to each overseas region.

Solid Pension System

TSMC's employee pension system includes the Defined Benefit Plan under the Taiwan Labor Standards Act, the Defined Contribution Plan under the Taiwan Labor Pension Act, as well as the practices in overseas regions. In addition to statutory contributions, TSMC hires professional accountants and consultants to conduct precise calculations of the Company's pension fund, so as to assure sufficient funding for employee pension payments in the future.

Pension Allocation and Preparation

Pension Plan TSMC's Practices Preparation in 2019
Defined Benefit Plans
  • TSMC provides a defined benefits plan based on an employee's length of service and average monthly salary for the six-month period prior to retirement under the Labor Standards Act
  • The money was administered by the Labor Pension Fund Supervisory Committee and deposited in the Committee's name in the Bank of Taiwan
  • TSMC contributes an amount equal to 2% of salaries paid each month and VisEra contributes a fixed amount to the pension fund
  • The fair value of TSMC's planned assets in Taiwan was NT$4,301,594,000 at the end of 2019. In accordance with the above provisions, the amount of recognized expenses of TSMC in 2019 was NT$259,596,000. The amount of accrued pension liabilities to be contributed in accordance with the law was NT$9,182,496,000 at the end of 2019
  • VisEra's pension reserve amount was NT$1,854,199
Defined Contribution Plans
  • In accordance with the Labor Pension Act in Taiwan, TSMC contributes to employees' personal accounts in Bureau of Labor Insurance
  • TSMC's oversea subsidiaries also make monthly contributions to the pension management department at certain percentages of the basic salary of their employees
  • TSMC in Taiwan makes monthly contributions equal to 6% of each employee's monthly salary to employees' pension accounts. The total amount of pension in 2019, including contributions from oversea subsidiaries, was NT$2,609,733,000
To provide sufficient support in their life and work, TSMC offers employees parental leaves in accordance with local laws and regulations, sets up four kindergartens for fabs in Taiwan, and provides a well-organized leave management system. Employees have flexibility in making use of their leaves to take care of their children. When facing military service or major injuries which require a long period of time to heal, employees also can apply for unpaid leaves, and then apply for reinstatement after the expiration of the period, to fulfil both individual and family needs.

Newborn Babies in TSMC/ in Taiwan

Note: Data included Taiwan facilities and VisEra

Number of Employees Who Took Parental Leave of Absence, Return to Work Rate and Retention Rate

Talent Recruitment

TSMC actively recruits right people with shared vision and values. New employees are mainly from the young generation (under the age of 30). We generate the momentum of R&D and manufacturing by recruiting young talent. It supports TSMC to sustain our long term competitive advantage even as competition and challenges become globalized.

For more information, please read TSMC 2019 Corporate Responsibility Report:

Inclusive Workplace - Talent Attraction and Retention

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