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Taiwan's IC design companies raise pay to prevent brain drain

Taiwan's IC design companies raise pay to prevent brain drain

Taipei, May 16 (CNA) Integrated circuit design companies in Taiwan have increased wages in a bid to to prevent brain drain, as competitors in China have been recruiting Taiwanese talent, market analysts said Saturday. The wage hike was evident in major IC companies' first-quarter financial statements, which showed higher payroll costs, the analysts said. MediaTek Inc. (???), the largest fabless IC supplier in Taiwan, is one of the high-tech firms that have been affected by the migration of talent to China, where attractive compensation packages are being offered, analysts said. MediaTek's financial statement showed NT$8.35 billion (US$273 million) in employee compensation for the January-March period, up 34.94 percent year-on-year. Earlier this year, MediaTek, which produces mainly smartphone chips, said it was planning to recruit 2,000 new employees for its research and development unit. The company said it was offering an annual salary NT$1 million for new employees with a master's degree, and NT$1.5 million per year for those with a Ph.D. In the local job market, such salaries are considered above average. Display driver IC designer Novatek Microelectronics Co. (??) also reported higher payroll data for the first quarter, showing a 26.32 percent year-on-year increase to NT$1.12 billion. Meanwhile, ILI Technology Corp. (??), a touch IC designer, increased its first-quarter payroll by 12.66 percent year-on-year, and Realtek Semiconductor Corp. (??) by 9.28 percent. Market analysts said the first-quarter financial statements indicated that several Taiwanese IC designers had implemented a wage hike six months ahead of schedule to retain talent in Taiwan amid strong recruitment efforts by Chinese competitors. In addition to increasing basic wages, some Taiwanese IC companies have been offering higher allowances, analysts said. Global Unichip Corp. (??), for example, implemented a 15.56 percent year-on-year increase in allowances in the first quarter, analysts said. They said employees are the most valuable assets in the IC design industry and hiking benefits is one way to retain talent in a market that is becoming increasingly competitive. Some local IC companies are also planning to offer stock options exclusively for their employees, analysts said. (By Jackson Chang and Frances Huang)


Updated : 2021-09-18 19:10 GMT+08:00