3 ms·
They have to be able to sell chips at a competitive price. In the extreme/absurd case they could pay each employee $1B/year and I’m sure they could find qualifi
by whiddershins 3y ago
They have to be able to sell chips at a competitive price.
In the extreme/absurd case they could pay each employee $1B/year and I’m sure they could find qualified people but they would immediately go out of business.
- mcphage 3y agoSo thus, the right salary to hire the people they need is somewhere between what they're currently paying, and $1B/year. My guess—and this is only a guess, mind you—is that they'd still be able to staff up on something significantly lower than $1B. But I'm not an economist, so I might be wrong there.
- lotsofpulp 3y agoTSMC has a long history of increasing double digit profit margins, in the range of $10B+ per year, and is amongst the most profitable businesses in the world. I would err on the side of TSMC deciding not to pay sufficiently to incentivize labor (which may still be the optimal move for TSMC). https://www.macrotrends.net/stocks/charts/TSM/taiwan-semiconductor-manufacturing/profit-margins https://www.macrotrends.net/stocks/charts/TSM/taiwan-semicon... https://www.macrotrends.net/stocks/charts/TSM/taiwan-semiconductor-manufacturing/net-income https://www.macrotrends.net/stocks/charts/TSM/taiwan-semicon...