Tokyo Electron Limited (TEL), a leading Japanese semiconductor equipment manufacturer, is set to revolutionize its salary structure. In an unprecedented move, TEL plans to increase the starting monthly salary for its new hires by about 40%, surpassing the JPY 300,000 barrier, a first in the company’s history. This equates to approximately USD 2,121, a significant leap intended to match international levels and attract global talent.
This salary hike, as reported by Nikkei Asia, is a strategic decision fueled by TEL’s robust business performance, allowing for consistent increases in wages and bonuses. Starting April 2024, university graduates will earn JPY 304,800 (USD 2,161) per month, with higher qualifications commanding up to JPY 320,000. This is the first rise in starting salaries for TEL’s new employees in seven years.
In comparison, a 2023 survey by Japan’s National Personnel Authority showed that the average starting salary for university graduates in Japanese private companies was around JPY 210,000 (USD 1,484), making TEL’s offer notably higher. As of March 2023, TEL’s average annual salary was recorded at JPY 13.98 million.
Japan’s semiconductor industry is witnessing a surge in investments, highlighted by TSMC’s entry into Kumamoto, Kyushu. In response to this growing demand for skilled professionals, semiconductor manufacturers are elevating their salary offers, prompting suppliers like TEL to adjust their compensation strategies.
TEL’s plan to hire around 400 new graduates in the spring, 50 more than the previous year, reflects the company’s commitment to expansion and talent acquisition. With an eye towards hiring 500 new employees in the coming years, TEL is positioning itself as a highly attractive employer in the competitive semiconductor field.
