Huawei trying to poach TSMC employees with 3X salary

TSMC
(Image credit: TSMC)

It is not a secret that Huawei has been poaching employees, particularly in the semiconductor industry, from Taiwan in general — and from companies like TSMC in particular. As pressure on Huawei has increased in recent years, the company has intensified its hiring and is now offering unprecedented salaries, reportedly up to three times higher than those at TSMC, according to Le Monde

TSMC is the world's largest contract manufacturer of chips with process technologies that are significantly more competitive than those offered by its rivals in terms of performance, power, transistor density, and yields. Obtaining TSMC's trade secrets is seen as a way to accelerate research and development for many competitors, so the company employs rigorous methods to protect its intellectual property. 

For example, TSMC enforces strict project compartmentalization to ensure that no single employee has broad access to sensitive data. This approach aims to secure the company's know-how. Thus, rivals like Huawei and SMIC have been attempting to poach as many TSMC employees as possible, hoping to acquire at least some of the foundry's secrets. 

Taiwan's Justice Investigation Bureau has increased scrutiny on firms recruiting local semiconductor talent and on those misrepresenting the roles they are hiring for. These companies, sometimes posing as data analytics firms, have been reportedly aiming to attract Taiwanese experts with salaries up to three times the local rate. Taiwan views this as a strategy by Chinese companies to extract trade secrets that are critical to semiconductor development. 

Both Huawei and SMIC are under pressure from the U.S., which is attempting to limit their access to advanced semiconductor equipment and technologies. Although they both still manage to obtain almost everything they need using proxies or third parties, hiring experienced personnel with actual experience at TSMC, UMC, or leading electronic design automation tool companies is a good way to accelerate their work. Therefore, companies like CXMT, Huawei, SMIC, and QXIC have been offering substantial compensation to those willing to join them. 

There is a catch, though: After someone leaves a major American or Taiwanese company to work at one of these China-based entities, they are unlikely to be able to return. One individual interviewed by Le Monde said that she never responded to recruiters acting on behalf of Huawei.

TOPICS
Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • 8086
    You are a traitor to liberty if you accept one of these Chinese 3x salaries. Patriotism before profit people!
    Reply
  • newtechldtech
    8086 said:
    You are a traitor to liberty if you accept one of these Chinese 3x salaries. Patriotism before profit people!
    heh tell that to all "made in china" US products ... so it is okay that US companies earn 10x from manufacturing in China , but it is not okay that normal people get hired for triple salary ?

    How about you boycott everything "made in China" and show us YOUR Patriotism!!!
    Reply
  • tony-w
    The only way they would pay 3x salary is if gives them some level of TSMC secret sauce especially since salaries in mainland China are normally much less than Taiwan.

    Sadly the Chinese legal system will just ignore IP theft if it helps China.
    Reply
  • NinoPino
    tony-w said:
    The only way they would pay 3x salary is if gives them some level of TSMC secret sauce especially since salaries in mainland China are normally much less than Taiwan.
    It is normal to pay 3x when you need to quickly increase your capacity. With that money they buy the personal knowhow of those employees, simple.
    The same thing happen in NFL or big Europeans football clubs, when they want a particular player, coach or manager.
    It isn't abnormal or dishonest.
    Reply
  • newtechldtech
    tony-w said:
    Sadly the Chinese legal system will just ignore IP theft if it helps China.
    This applies to Every country in the world. the CIA itself spies on other nations inventions.
    Reply
  • Marco_il_bello
    Let's summarize: if the Chinese offer three times the salary, they "steal" (but didn't the Chinese exploit the workers? now they are accused of giving three times as much?).
    If an american tech company gives triple the salary then they are great.
    Oh my God, it's getting worse and worse
    Reply
  • Rokinamerica
    The Chinese are trying to buy "Intellectual Property" by this. Defending this is just being naive at best.
    Reply
  • NinoPino
    Rokinamerica said:
    The Chinese are trying to buy "Intellectual Property" by this. Defending this is just being naive at best.
    Defending what ? Free salary ?
    Reply
  • Rokinamerica
    Defending China doing this. For the employees they may manage to lure, once they know the new hires know, they won't be paying anywhere near 3 times, if they even keep them employed.

    I don't begrudge anyone doing better for themselves. They make their own decisions. But if tech companies do this here, they will see lawsuits if IP is compromised by ex-employees in situations like this. This isn't In-N-Out paying more to get McDonalds counter workers.
    Reply
  • 8086
    newtechldtech said:
    heh tell that to all "made in china" US products ... so it is okay that US companies earn 10x from manufacturing in China , but it is not okay that normal people get hired for triple salary ?

    How about you boycott everything "made in China" and show us YOUR Patriotism!!!
    I already do that as much as I can. However, certain things at this time are unavoidable and are made in China with no viable alternative which is made elsewhere.
    Reply