Huawei lures TSMC employees with triple paychecks

Chinese technology giant Huawei has stepped up its efforts to attract talent from TSMC, one of the world’s leading semiconductor manufacturers based in Taiwan. According to industry sources, Huawei is offering high-profile employees at TSMC salaries that are three times their current earnings. The terms are aimed at attracting the experience and competencies needed to develop domestic semiconductor manufacturing.

Huawei’s offer is aimed at attracting the experience and competencies needed to develop domestic semiconductor manufacturing.

Huawei’s goal is to strengthen competencies in the semiconductor industry

With the renewed availability of chips in the global market, Huawei sees a chance to strengthen its position and build an independent supply chain. Investing significant resources to find talent from TSMC could help the company reduce its dependence on other manufacturers and strengthen its position in the telecom equipment and hardware business.

Huawei is looking to strengthen its position in telecom equipment and hardware.

The ramping up of recruiting efforts, however, is worrisome for the Taiwanese side. TSMC is known for its unique technology and manufacturing processes, which have been the foundation of its success in the market. Experts fear that financially motivated employee moves to Huawei could lead to the leakage of valuable technical knowledge and manufacturing secrets.

And the Taiwanese side is concerned that the financially motivated employee moves to Huawei could lead to the leakage of valuable technical knowledge and manufacturing secrets.

Taiwanese authorities’ reaction and potential consequences

Amid such threats, Taiwan’s government authorities, including the Bureau of Justice, are tightening oversight of hiring practices in the semiconductor industry. Companies suspected of deceptive job descriptions or offering inflated salaries to motivate the transition of talent could face legal action.

Companies suspected of deceptive job descriptions or offering inflated salaries to motivate the transition of talent could face legal action.

Huawei’s market impact and development

For Huawei, the recruitment of TSMC’s talent is of strategic importance given the company’s ambitions to go global in semiconductor manufacturing. Successful employee poaching can accelerate the development of its own technology base and enhance the company’s competitiveness. On the other hand, such activity increases competition in an already saturated market where major players are competing for talent and access to innovative technologies.