The world's leading contract chipmaker, Taiwan Semiconductor Manufacturing Co., could infuse new momentum into pay hikes that outpace price increases in inflation-plagued Japan, an essential element Prime Minister Fumio Kishida has long pursued.
TSMC's generous compensation packages to recruit for a new plant in Kikuyo, Kumamoto Prefecture, can serve as a wakeup call to manufacturers not just around the area but in other regions of the country, economists say.
The spillover effect will be critical as the world's third-largest economy is at risk of stagflation if wage hikes continue falling behind price rises.