**: The content was compiled from Nikkei by Semiconductor Industry Watch (ID: icbank), thank you.
Tokyo Electron, a maker of chip-making equipment, will increase the starting salary of new employees by about 40% per month to secure talent by aligning its pay with its foreign counterparts.
The company increased 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 time in seven years that Tokyo Electron has raised salaries for new employees.
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 device manufacturers.
TEC plans to enroll 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 the spring of 2023, the average starting salary for university graduates from private companies in Japan is about 210,000 yen, and 230,000 yen for those with higher education.
A source at Tokyo Electron said, "In order to acquire talent, our goal is to increase the salary level of foreign competitors. ”
Although TEAF believes its annual revenue, including summer and winter bonuses, is comparable to or higher than that of its overseas competitors, the company is concerned that job listings, which only list starting salaries, may make its job offers look less attractive.
Many foreign equipment and semiconductor manufacturers doing business in Japan offer a starting salary of more than 300,000 yen for those with a bachelor's degree.
Applied Materials offers a starting salary of 370,000 yen for recent college graduates in Japan. The starting salary for LAM Research 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 offering subsidies to kick-start its chip manufacturing industry. TSMC plans to start production at its new Kumamoto factory in late 2024, while backed chipmaker Rapidus seeks to build a factory in Hokkaido by 2025. Competition for talent is intensifying as investment in research and production increases.
Due to the strong business performance, Tokyo Electron has been raising annual salaries, including bonuses. According to the financial statements, the average annual salary as of March 2023 was 13.98 million yen, an increase of 3.22 million yen from March 2018.
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