Semiconductor equipment giant, wages skyrocketed by 40%

Latest update time：2024-01-01

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Source: Content compiled from Nikkei by Semiconductor Industry Observer (ID: icbank) , thank you.

Chipmaking equipment maker Tokyo Electron will raise starting monthly salaries for new employees by about 40% to secure talent by bringing their pay in line with foreign peers.

The company will increase the wages of all new employees by 85,500 yen. University graduates who join the company in April 2024 will receive 304,800 yen ($2,161) per month, while those with higher degrees will receive 320,000 yen, both above the 300,000 yen mark. This is the first salary increase for new employees at Tokyo Electronics in seven years.

Japan has seen a series of major chip-related investments, including TSMC's entry into the southwestern main island of Kyushu. Chipmakers offer high wages to hire skilled workers, a trend that also affects equipment manufacturers.

Tokyo Electronics plans to recruit about 400 new graduates in the spring, 50 more than that year, and increase the number of new employees to 500 within a few years.

According to a survey by the National Personnel Bureau in spring 2023, the average starting salary for college graduates in Japan's private sector is about 210,000 yen, and 230,000 yen for those with higher education.

"In order to acquire talent, we aim to raise salary levels at foreign competitors," a source at Tokyo Electronics said.

Although Tokyo Electron believes its annual earnings, including summer and winter bonuses, are on par with or higher than those of overseas competitors, the company is concerned that the job listing, which lists only starting salaries, may make its job opportunities look less attractive.

Many foreign equipment and semiconductor manufacturers operating in Japan offer starting salaries in excess of 300,000 yen for those with a bachelor's degree.

Applied Materials offers a starting salary of 370,000 yen for fresh college graduates in Japan. Lam Research's starting salary is about 300,000 yen, while Micron Technology, which has a factory in Hiroshima Prefecture, has a starting salary of about 310,000 yen.

Japan is providing subsidies to jump-start its chip manufacturing industry. TSMC plans to start production at a new Kumamoto plant in late 2024, while government-backed chipmaker Rapidus seeks to build a plant in Hokkaido in 2025. As investment in research and production increases, competition for talent is intensifying.

Tokyo Electronics has been increasing annual salaries, including bonuses, due to strong business performance. The financial statements show that the average annual salary as of March 2023 is 13.98 million yen, an increase of 3.22 million yen from March 2018.

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