TAIPEI — Taiwan's stock market hit another record high Friday (Jan. 16), even though most Taiwanese companies have had mixed performances over the past few months. The benchmark index closed at 31,408 points, capping a fourth consecutive week of gains driven largely by Taiwan Semiconductor Manufacturing Co. (台積電, TSMC).
But the rally masks a stark divide: approximately 1,200 of Taiwan's nearly 2,000 listed companies have dropped below their annual moving averages, according to an expert. "I don't think it's acceptable for only TSMC to do well," Lee Hung-chi (李鴻基), CEO of Kuan-Chi International (寬量國際), told a Storm Media business program in late December. "I even think this could become a national security issue."
The divide is reflected sharply in year-end bonuses. A survey by 104 Job Bank (104人力銀行), released in November 2025, found the semiconductor industry leads all sectors with an average year-end bonus of 1.98 months of salary, compared to just 0.97 months for accommodation services. TSMC workers are expected to receive total compensation packages approaching several months, according to industry estimates, while hospitality workers average less than one.
Even within single industries, the gap is stark. China Airlines (華航) negotiated total compensation estimated at 10 months after union discussions on Jan. 9, while Starlux Airlines (星宇航空) offered just one month. Starlux Chairman Chang Kuo-wei (張國煒) apologized to employees on Jan. 6, citing heavy expansion costs as the airline prepares to add 14 new aircraft this year.
The concentration shows no signs of slowing. TSMC announced Thursday that capital expenditure for 2026 would rise to US$50 billion from US$40-42 billion in 2025, with funds directed toward advanced A16 processes and U.S. facility expansion in Arizona. More than five research institutions have set price targets above NT$2,000 (approximately US$64.50) for TSMC shares, which closed at NT$1,740 (US$56.13) on Friday.
Lo Yueh-hua (羅悅華), senior consultant at 104 Human Resources Institute (104人資學院), warned that talent is increasingly concentrated in high-paying industries, creating greater recruitment pressure for lower-paying sectors. The 104 survey found 68% of companies plan to issue bonuses averaging 1.56 months ahead of the Lunar New Year holiday, down from 1.62 months the previous year.
Lee said Taiwan's stock exchanges and regulators are scrambling to address the imbalance, following Japan and China in launching programs to support underperforming companies. But the fundamental question remains: Can an economy sustain 7% growth when 60% of its companies — and the workers who depend on them — are being left behind?
