Tokyo Electron Announces 40% Increase in Starting Salaries

Tokyo Electron, a leading semiconductor manufacturing company, has announced a significant increase in the salary for new recruits. Graduates will now receive $2161 a month, while those with advanced degrees will receive $2270. This is a substantial increase compared to the average starting salary at private-sector firms in Japan, which is around $1,490 a month for graduates and $1,630 for those with higher degrees.

The decision to raise salaries comes as Tokyo Electron aims to attract top talent and remain competitive in the industry. In the upcoming Spring recruitment season, the company plans to hire 400 new employees.

Currently, Tokyo Electron's average salary stands at $8250. The company acknowledges the need to raise salaries in order to compete with the attractive offers made by foreign competitors. For instance, Applied Materials' operation in Japan is offering graduates $2624 a month, Micron's Japan unit is offering $2198, and Lam Research's Japanese office is offering $2127.

Furthermore, the semiconductor industry in Japan is experiencing a boost with the establishment of fabs by TSMC and Rapidus, supported by substantial government subsidies. This development bodes well for Japanese suppliers, as they can expect increased demand and growth in the coming years.

In conclusion, Tokyo Electron's decision to increase the salary for new recruits demonstrates its commitment to attracting top talent and remaining competitive in the semiconductor industry. With the prospects for Japanese suppliers looking particularly promising, the company's move is well-timed and strategic.