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Message: <blockquote data-quote="ibnanv" data-source="post: 23590888" data-attributes="member: 218596"><img src="https://www.elakiri.com//www.arabnews.com/sites/default/files/styles/n_670_395/public/main-image/2018/09/04/1302966-719708251.jpg?itok=i5wbARRA" alt="" class="fr-fic fr-dii fr-draggable " style="" />A huge pay rise, eight free trips home a year and a heavily subsidised  apartment. It was a dream job offer that a Taiwanese engineer simply  could not refuse.A veteran of Taiwan’s top-tier chipmakers, including United  Microelectronics Corp. (UMC), the engineer took up the offer from a  Chinese state-backed chipmaker last year and now oversees a small team  at a wafer foundry in eastern China.The engineer joined a growing band of senior Taiwan professionals  working in China’s booming and fast-developing semiconductor industry.Attracting such talent from Taiwan has become a key part of an effort by  China to put the industry into overdrive and reduce the country’s  dependence on overseas firms for the prized chips that power everything  from smartphones to military satellites.That drive, which started in 2014, intensified this year as US-China  trade tensions escalated, according to recruiters and industry insiders,  exposing what China feels is an overreliance on foreign-made chips.China imported $260 billion worth of semiconductors in 2017, more than  its imports of crude oil. Home-made chips made up less than 20 percent  of domestic demand in the same year, according to China Semiconductor  Industry Association.More than 300 senior engineers from Taiwan have moved to Chinese  chipmakers so far this year, joining nearly 1,000 others who have  relocated since Beijing set up a $22 billion fund to develop the chip  industry in 2014, according to estimates from H&L Management  Consultants, a Taipei-based recruitment firm.The battle for skilled engineers has raised concerns in Taiwan that the  island could lose a key economic engine to its political foe, China.  Analysts say China is still years behind Taiwan in terms of chip design  and manufacturing, however, even as it moves ahead in terms of the  production of lower-end chips.China’s semiconductor plans accelerated this year after the US banned  sales of chips to the Chinese phone vendor ZTE, senior Chinese officials  familiar with the matter told Reuters in April.Tariffs imposed by Washington on $16 billion worth of China’s imports  have hit Chinese semiconductors, which are now subject to tariff rates  of 25 percent.That will make Chinese chips less competitive compared to those from  Taiwan and South Korea, and could disrupt China’s semiconductor  ambitions. Beijing’s aim is to have local chips comprise at least 40  percent of China’s semiconductor needs by 2025.Underscoring the talent crunch, two state-run institutions said in August that about 400,000professionals were working in China’s integrated circuit sector at the  end of 2017, far short of the estimated 720,000 workers needed by 2020.While China has also targeted engineers from South Korea and Japan to  address that shortage, it has had the most success in Taiwan thanks to a  common language and culture, recruiters said.Lin Yu-Hsuan, a manager at the recruitment firm H&L, said engineers  from Taiwan were lured by high pay, perks and more senior positions at  Chinese chipmakers such as Semiconductor Manufacturing International  Corp. (SMIC) that are flush with cash from China’s multi-billion chip  fund.“Many of them said: ‘The money I will earn in China in three years is  equivalent to what I could get in Taiwan in 10 years. I could retire  earlier’,” Lin said.Steve Wang, the vice chairman and president of Novatek Microelectronics,  a Taiwanese integrated chip designer, said a small percentage of its  employees had left for China over the past two years, and acknowledged  that it would be difficult to match offers from Chinese rivals.The engineer at the wafer foundry said his Chinese employer offered him a  new three-bedroom apartment with a 40 percent discount on the condition  that he worked for the company for more than five years, in addition to  a50 percent pay rise. He declined to give the exact figure. “China dares  to burn money, whereas Taiwan companies have limited resources,” he  said.A senior executive at a newly established chipmaker in northeastern  China, SiEn (QingDao) Integrated Circuits Company, said about one-third  of its recently recruited 120 engineers were from Taiwan.“There is not a lack of money. What we need is talent,” said the person,  who declined to be named as he was not authorized to speak to the  media.He said the company, led by Richard Chang, the founder of SMIC, China’s  leading chipmaker, offers new hires discounted property and attractive  subsidies for bilingual schools in the port city of Qingdao.“Taiwanese engineers are most experienced and could help us cultivate local talents,” the executive said.Industry watchers said Taiwan’s widely respected chip design houses and  foundries have been among the hardest hit by the outflow of engineers.The island’s leading integrated circuit designers and chipmakers have  seen a 35 percent jump in labor costs, including salary and benefits  from two years ago, compared with a 21 percent hike in revenue,  according to Reuters calculations based on corporate filings from  Taiwan’s 10 largest listed companies by market value.Taiwan has been watching the Chinese recruitment efforts with growing anxiety.It has long barred chipmakers such as Taiwan Semiconductor  Manufacturing, a key supplier to Apple Inc. , from moving their most  advanced technology to manufacturing operations in China.China’s integrated circuit design firms have already surpassed their  Taiwan rivals in terms of revenue, with $31 billion in 2017, compared  with Taiwan’s $22 billion, according to Mark Li, an analyst at  Bernstein.The fears are that the battle for talent will widen that gap further.In a move to retain top talent, Taiwan’s cabinet in July pledged to relax tax regulations on employee stock ownership.“The Chinese Communist Party has been poaching our talent,” said Chen  Mei-ling, minister of Taiwan’s policy-planning National Development  Council. “The government has amended regulations to help companies keep  talent.”Ho Chan-cheng, legal affairs director at Taiwan’s Intellectual Property  Office, said “inappropriate poaching” could lead to the leaking of trade  secrets and that the government was working to protect the island’s  core technology — namely the capacity to increase chip yield per wafer.Taiwan companies are also trying to offer their own incentives.Antonio Yu, spokesman for the Taiwan-based chip design house Phison  Electronics Corp, said that while the company “does not have the capital  to play such a money game,” it has tried to create a “reassuring  environment” for its employees.“We treat our employees like family,” he said.Despite such efforts, Taiwanese engineers are finding incentives from China hard to resist.Tommy Huang, a 37-year-old Taiwanese chip engineer who in 2016 joined  United Semiconductor in southern China, said that Taiwanese efforts to  retain talent did not work for him.“You don’t have any chance if you stay in Taiwan,” said Huang, whose  Chinese employer offered him an annual school subsidy of up to 60,000  yuan ($8,689) for his five-year-old child and a salary more than double  what he earned in Taiwan.“We are buying hope by coming to China.”</blockquote>

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