TLDRs:
- TSMC stock rose 2.94% as US-based Taiwanese workforce reached a record 137,000 in 2024.
- Expansion projects in Arizona and Japan drive growth, shifting talent flows from China.
- Overseas Taiwanese employment hit 666,000, with Southeast Asia and the US seeing major gains.
- TSMC subsidies and infrastructure investments create opportunities for service and tech firms globally.
Shares of Taiwan Semiconductor Manufacturing Company Limited (TSM) surged 2.94% on Thursday, closing at $290.68 on the NYSE, as investors cheered record growth in its overseas workforce.
The spike comes amid an expansion of TSMC’s global facilities, particularly in the United States and Japan, which is reshaping the semiconductor labor market.
According to Taiwan’s Directorate General of Budget, Accounting and Statistics (DGBAS), the number of Taiwanese nationals working in the US reached 137,000 in 2024, a roughly 7% increase from 128,000 in 2023. This figure represents the highest number of Taiwanese professionals in the US since the pandemic began, highlighting TSMC’s influence in attracting talent to key semiconductor hubs abroad.
Taiwan Semiconductor Manufacturing Company Limited, TSM
TSMC Expansion Drives Workforce Growth
TSMC’s expansion projects in Arizona and Kumamoto, Japan have been central to this shift. The company’s Arizona fab, backed by a $40 billion development plan, and Kumamoto’s mass production launch near the end of 2024 have both drawn skilled engineers and technicians overseas.
Analysts note that this expansion not only boosts production capacity but also strengthens TSMC’s global supply chain and market positioning.
China, including Hong Kong and Macao, still hosts the largest number of Taiwanese workers abroad at 231,000, but this is significantly down from over 400,000 before the pandemic. The US now accounts for 20.5% of Taiwanese overseas workers, while Southeast Asia represents 14.6%, reflecting a diversification of talent destinations away from traditional strongholds.
Economic and Strategic Implications
Beyond workforce growth, TSMC’s overseas expansion carries broader economic implications. Subsidies for TSMC’s international projects totaled approximately NT$147 billion over the past two years, with NT$71.9 billion allocated in the first three quarters of 2024 alone.
These funds support not only the construction and operation of fabs but also the relocation of talent and enhancement of local infrastructure.
Cross-border service providers and technology firms are poised to benefit. Human resources, immigration, and payroll consultants can advise Taiwan-based suppliers entering US or Japanese markets, while technology infrastructure companies can tap TSMC’s supplier network for industrial, construction, and data center projects. Average total earnings for full-time Taiwanese employees in 2024 reached NT$64,668 per month, providing benchmarks for compensation in higher-cost regions.
Broader Semiconductor Market Trends
TSMC’s workforce expansion signals a broader strategic shift in the semiconductor sector. Rising labor and compliance costs in China have encouraged Taiwanese companies to diversify globally.
For TSMC, building strong presences in the US and Japan not only secures production capacity but also strengthens geopolitical resilience amid rising tensions in the Asia-Pacific region.
Investors responded positively to these developments, driving TSMC shares up $8.31, or 2.94%, reflecting confidence in the company’s long-term growth prospects. Analysts highlight that continued investment in overseas facilities and the strategic relocation of talent are likely to sustain TSMC’s market leadership and earnings momentum.
As TSMC continues to expand internationally, the combined effect of workforce growth, strategic subsidies, and supply chain strengthening could make 2025 a pivotal year for the semiconductor giant and its global partners.
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