[News] Japanese Semiconductor Equipment Manufacturer Raises Salaries by 40% to Attract Talent

2024-01-02 Semiconductors editor

Japanese semiconductor equipment manufacturer Tokyo Electron Limited (TEL) is reportedly set to increase the starting monthly salary for new hires by approximately 40%, breaking the JPY 300,000 barrier for the first time (approximately USD 2,121). This move is expected to align the salary level with international counterparts to attract talent.

According to the report from Nikkei Asia, TEL has been consistently raising salaries and bonuses due to its strong business performance. The company will raise the salary for all new hires by JPY 85,500.

Starting in April 2024, the monthly salary for university graduates joining the company will reach JPY 304,800 (USD 2,161), while those with higher qualifications can receive JPY 320,000. This marks the first salary increase for new employees at TEL in seven years.

As per the survey conducted by the Japan’s National Personnel Authority in the spring of 2023, Japanese private companies offer an average starting salary of around JPY 210,000 (approximately USD 1,484) for university graduates, with those holding higher degrees receiving around JPY 230,000. On the other hand, TEL’s financial statement reveals that the company’s average annual salary as of March 2023 is JPY 13.98 million.

Japan has seen a series of significant investments in the semiconductor industry, including TSMC’s entry into Kumamoto, Kyushu. Semiconductor manufacturers are offering high salaries to attract skilled workers, and this trend is prompting chip equipment suppliers to follow suit.

TEL plans to hire approximately 400 new graduates in the spring, an increase of 50 from the previous year, and envisions increasing the number of new employees to 500 within the next few years.

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(Photo credit: TEL)

Please note that this article cites information from Nikkei Asia