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Home Hardware

Huawei Reportedly Poaching TSMC Employees to Boost Semiconductor Development

Offering potential hires with three times higher salaries than offered by their current employer.

by Heirul Kamel
November 8, 2024
Huawei
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Huawei has reportedly been intensifying its recruitment efforts within the semiconductor industry, particularly targeting employees from Taiwan Semiconductor Manufacturing Company (TSMC). According to French publication Le Monde, citing an individual familiar with the matter,  the Chinese tech giant is proposing salaries up to three times higher than what the semiconductor manufacturer offers, in a move to attract top talent amidst increasing geopolitical and trade pressures.

TSMC is known for its advanced process technologies, which outperform competitors in areas like power efficiency and transistor density. Protecting its intellectual property is critical, and the company employs strict project compartmentalisation to limit employee access to sensitive information. 

semiconductor chip manufacturing Huawei TSMC
Image: Anandtech

Le Monde’s source adds that Taiwan’s Justice Investigation Bureau, in response, has ramped up investigations into firms that lure local semiconductor talent under false pretences, often posing as data analytics companies. It is said that these firms offer lucrative packages, reportedly up to triple the local salaries, aiming to tap into the country’s pool of semiconductor experts. Taiwanese authorities regard this as part of a broader strategy by Chinese companies to acquire critical trade secrets.

The alleged recruitment drive by Huawei as well as China-based Semiconductor Manufacturing International Corporation (SMIC) coincides with increasing US restrictions on their access to advanced semiconductor technologies. It is believed that firms such as Huawei, SMIC, CXMT, and QXIC are therefore offering attractive compensation to entice skilled workers to overcome this limitation.

tsmc chip manufacturer
Image: 李 季霖, via Flickr

However, there is a significant risk for those who accept these offers, Le Monde’s source notes. It is said that employees who leave major US or Taiwanese companies for Chinese entities often find themselves unable to return to their previous industry roles. The individual also stated that they deliberately avoided engaging with Huawei’s recruiters, aware of the potential long-term consequences.

On a related note, it was recently reported that TSMC-made components have somehow been found in Huawei products despite bans. In light of this, the Taiwanese chip manufacturer announced that it has halted semiconductor shipments to a client suspected of illegally supplying them to the Chinese tech giant, and affirms that it is complying with the US sanctions.

(Source: Le Monde)

Filed Under chinaemployeesHuaweiManufacturingpoachingSemiconductortaiwantsmc
Updated 2:19 pm, Fri, 8 November 24
https://lowy.at/9ccky
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