TSMC has a long history of increasing double digit profit margins, in the range of $10B+ per year, and is amongst the most profitable businesses in the world. I would err on the side of TSMC deciding not to pay sufficiently to incentivize labor (which may still be the optimal move for TSMC).
https://www.macrotrends.net/stocks/charts/TSM/taiwan-semicon...
https://www.macrotrends.net/stocks/charts/TSM/taiwan-semicon...