TAIPEI: 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 400,000
professionals 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 a
50 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.”
China lures chip talent from Taiwan with fat salaries, perks
China lures chip talent from Taiwan with fat salaries, perks
- Attracting chipmaking talent from Taiwan has become a key part of an effort by China to put the industry into overdrive
- More than 300 senior engineers from Taiwan have moved to Chinese chipmakers so far this year
Clinton praises Saudi Arabia’s Vision 2030 for unlocking human potential
RIYADH: Former US President Bill Clinton praised Saudi Arabia’s Vision 2030 initiatives on Wednesday, highlighting their role in creating new opportunities for individuals to realize their full potential.
Speaking on the final day of the Real Estate Future Forum in a panel titled “A President’s Perspective: Bill Clinton at RFF 2025,” the 42nd president of the US lauded the Kingdom’s efforts to unlock human potential and foster inclusive development.
“The things that Saudi Arabia is doing now will provide more opportunities for more people to live up to their fullest capacity, and I think this is important,” Clinton said.
He emphasized the importance of Vision 2030 as a strategic framework for sustainable growth and encouraged other countries to take note.
“I think it (Vision 2030) is very important and it’s worth investing in,” Clinton remarked, adding, “I think that we, Americans, should come here and study this 2030 plan and ask ourselves what is our equivalent.”
Clinton expressed a long-standing admiration for Saudi Arabia, stating, “I’ve always felt drawn to this country.” He highlighted the development of human potential as a key driver of the future, adding, “I think that the ability to develop human potential will determine the future.”
Reflecting on his recent visit to Diriyah, a historic district undergoing significant transformation, the former president described the experience as remarkable. “I visited Diriyah last night and I think it was breathtaking,” he said.
Addressing the Saudi youth, Clinton underscored the value of career autonomy in a rapidly evolving job market, acknowledging the various opportunities the government offers to young Saudis.
“It’s a gift to be able to decide what to do with your working hours,” he told the youth, reinforcing the importance of choice and purpose in their professional lives.
Clinton’s remarks at RFF 2025 reaffirmed his admiration for Saudi Arabia’s ambitious Vision 2030, positioning the Kingdom as a model for economic diversification and social progress on the global stage.
The event, which took place from Jan. 27, was themed “Future for Humanity: Shaping Dreams into Reality.”
Held at the Four Seasons Hotel in Riyadh, it brought together over 300 speakers from 85 countries to discuss the future of real estate.
The forum served as a global hub for industry leaders, policymakers, and investors as Saudi Arabia moves forward with its vision for a diversified, innovation-driven economy.
Diriyah seeing strong real estate growth, planning mid-level housing units: Group CEO
RIYADH: The Diriyah project is experiencing strong success in residential real estate sales and is now targeting mid-level buyers, said a top executive.
On the final day of the Real Estate Future Forum, Jerry Inzerillo, group CEO of Diriyah Co., highlighted the rapid growth of the area’s residential and commercial property market, emphasizing the strong demand for homes.
He also spoke about the continued expansion of Diriyah’s business landscape, with plans to open Zallal in April, which will feature 23 new businesses, further boosting the area’s appeal.
These developments are a key part of a strategy to position the destination — one of Saudi Arabia’s five giga-projects supported by the Public Investment Fund — as both a residential and commercial hub, contributing to the Kingdom’s economic transformation under Vision 2030.
“I’m thrilled to say that we’re selling a lot of our residential real estate,” Inzerillo said, adding that Diriyah will offer “several hundred units for the mid-level buyer” at the upcoming Cityscape event in November, catering to a broader range of potential homeowners.
Beyond real estate, Inzerillo talked up the area’s historical and cultural importance to Saudi Arabia, saying: “Diriyah is the house of Al-Saud, the source of our national identity and pride.
“What makes us unique is that we are the celebration of culture and heritage.”
Inzerillo also discussed Diriyah’s spiritual importance, noting that one of its crowning achievements is providing a welcoming environment for religious travelers from around the world.
“One of the greatest things in the world is to allow 2 billion Muslims to feel welcomed to fulfill pilgrimage to the two holy cities,” he said.
The CEO shared that 14 percent of his workforce, now totaling 3,200 employees, are from Diriyah’s local community.
Inzerillo noted the completion of 9 km of parks, which contributes to the area’s green spaces and makes it more attractive to residents and visitors. He also highlighted construction safety milestones, stating that Diriyah had logged 209 million construction man-hours without a fatality.
Reflecting on the Kingdom’s increasing international appeal, Inzerillo said: “People from all over the world are coming to see Saudi, and they’re going back happy.”
The CEO concluded by expressing confidence in the Kingdom’s future capabilities, stating: “What I would say for sure by 2030, even though I believe it now, is that the Kingdom, with its leadership now, is capable of hosting any global event in any way and be the best host for that thing.”
GCC trade set to grow 5.5% annually, reaching $2.3 trillion by 2033: BCG report
- China is set to emerge as the largest growth market for GCC trade, with exchange volumes increasing by $88 billion
- Japan follows closely, with an expected increase of $46 billion
RIYADH: The Gulf Cooperation Council’s trade sector is set to grow at an annual rate of 5.5 percent, reaching $2.3 trillion by 2033, according to a new report by Boston Consulting Group.
The BCG analysis highlights a robust outlook for GCC trade, driven by significant expansion across multiple corridors.
The region’s non-hydrocarbon trade is also set to expand by 3.5 percent annually, reinforcing the success of economic diversification efforts.
Global trade is expected to grow at an average rate of 2.9 percent annually through 2033, according to the report.
The expansion is driven by evolving partnerships and advancements in supply chain technology. As economies adapt to post-COVID-19 disruptions and regulatory changes, new trade corridors are emerging, particularly between the Global South and established markets. The shift creates significant opportunities for regions like the GCC to enhance their roles in global commerce.
Commenting on the developments, Rami Rafih, managing director and partner at BCG, said the reconfiguration of global trade flows presents a transformative opportunity for the GCC.
“As trade routes evolve, the region is not merely a geographic intermediary but a central orchestrator of emerging trade patterns,” he said, adding: “The GCC’s proactive investment in trade capabilities positions it to shape the future of global commerce.”
China is set to emerge as the largest growth market for GCC trade, with exchange volumes increasing by $88 billion at a compound annual growth rate of 5.7 percent.
Japan follows closely, with an expected increase of $46 billion, reflecting a 9.4 percent annual growth rate.
The report, titled “Great Powers, Geopolitics, and the Future of Trade,” underscores the GCC’s strategic positioning as a vital link between East and West, benefiting from shifting global patterns.
With China’s trade with the Global South projected to increase by $1.25 trillion and transactions between developing nations expected to rise by $673 billion by 2033, the GCC is set to capture a substantial share of this evolving landscape.
Beyond its traditional reliance on hydrocarbon exports, the GCC’s non-oil trade is gaining momentum, fueled by regulatory enhancements, expanding infrastructure, and strategic agreements.
The shift aligns with the region’s broader economic diversification efforts under national transformation plans.
The report also highlights major global trade realignments that could benefit the GCC.
North America is solidifying its resilience, with US-Mexico business forecast to grow by $315 billion by 2033, while the Association of Southeast Asian Nations is set to achieve a 3.7 percent annual growth rate.
India is emerging as a critical player, with total trade expected to reach $1.8 trillion annually by 2033.
As the Global South gains economic influence, representing 18 percent of the international gross domestic product and 62 percent of the world’s population, trade among developing nations is expected to expand significantly.
Annual exchange within these regions is set to rise by $673 billion over the next decade, while trade between the Global South and developed economies is projected to hit $1.67 trillion annually by 2033.
To capitalize on these shifting dynamics, the report outlines key strategies for business leaders in the GCC, emphasizing supply chain resilience and expansion into high-growth markets like India and China.
It also encourages investment in nearshoring strategies to leverage the region’s strategic position.
“Success will depend on cultivating deep market intelligence, robust scenario planning, and strategic partnerships,” Cristian Rodriguez-Chiffelle, partner and director for trade and investment at BCG, said.
With global trade undergoing rapid transformation, the GCC’s ability to position itself as a key player in emerging trade corridors will determine its long-term economic resilience and influence in the global marketplace.
Closing Bell: Saudi Arabia’s main index closes in green at 12,439
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, gaining 18.84 points, or 0.15 percent, to close at 12,439.48.
The main index saw a total trading turnover of SR8.878 billion ($2.36 billion), with 58 stocks advancing and 174 retreating.
The Kingdom’s parallel market, Nomu, also gained 25.69 points to close at 31,048.66. The MSCI Tadawul Index rose by 3.99 percent to close at 1,548.14.
The best-performing stock on the main market was Al Rajhi Bank, with its share price surging by 4.69 percent to SR100.4.
MBC Group Co. also emerged as a top gainer, with its share price increasing by 4.36 percent to SR55.10.
The share price of Bank Aljazira also rose by 3.96 percent to SR18.92.
Conversely, Bupa Arabia for Cooperative Insurance Co. saw its stock price decline by 7.09 percent to close at SR194.
On Nomu, Twareat Medical Care Co. saw the highest gain, with a 30 percent increase, reaching SR15.60.
Al Rashid Industrial Co. was the worst performer on Nomu, declining by 5.20 percent to SR47.40.
On the announcements front, Al Rajhi Bank reported a net profit of SR19.72 billion for the fiscal year ending Dec. 31, marking an 18.66 percent increase compared to 2023.
According to the bank’s statement on Tadawul, the surge was driven by an increase in net income attributable to the bank’s equity holders by 5.9 percent, reaching SR21.2 billion due to the rise in total operating income by 4.2 percent.
The Saudi National Bank also announced its annual financial results for the same period, with net profit reaching SR21.193 billion and marking an increase of 5.91 percent.
Shares of the Saudi National Bank ended the session at SR34.05, down 2.85 percent.
Bupa Arabia for Cooperative Insurance Co.’s annual financial results for the period ending Dec. 31 reported a net profit of SR1.16 billion, marking a 24.02 percent increase compared to the year before.
The insurance company said in a statement on Tadawul that the increase was primarily driven by business growth and a boost in the number of insured lives.
Additionally, the net investment results for the year amounted to SR672.37 million, compared to SR513.28 million in the previous year, recording a 30.99 percent increase.
The Saudi Investment Bank also reported an 11.07 percent increase in net profit during the fiscal year ending Dec. 31, reaching SR1.95 billion compared to the same period in 2023.
This growth was mainly due to an increase in total operating income, as well as a decrease in provisions for credit and other losses.
Saudi Investment Bank shares closed at SR15.04, up 0.27 percent.
Other banks, including Banque Saudi Fransi and Alinma Bank, also announced their financial results for the same period.
Banque Saudi Fransi reported a 7.6 percent increase in net profit for the period, reaching SR 4.54 billion compared to 2023. The bank attributed this growth to a 3.6 percent rise in total operating income, alongside a 0.6 percent reduction in operating expenses. Despite the positive results, Banque Saudi Fransi’s stock closed at SR 16, down 0.12 percent.
Similarly, Alinma Bank saw a significant 20.51 percent increase in net profit for the fiscal year ending Dec. 31, 2024, reaching SR 5.83 billion.
The bank cited a 12.5 percent rise in total operating income, driven by higher net income from financing and investment, fee income, exchange income, and FVSI income. This was partially offset by a decline in other operating income. Alinma Bank’s shares closed at SR 30.55, up 1.83 percent.
Saudi Arabia building the ‘most complex structure known to man,’ says developer
RIYADH: Saudi Arabia is set to build the “most complex structure known to man” as part of a major architectural project within the New Murabba development, according to the head of the company behind the project
Positioned at the heart of the large-scale urban project, the Mukaab is designed to be a futuristic mixed-use landmark that will contribute to Riyadh’s evolving skyline.
In a panel discussion during the Real Estate Future Forum, Michael Dyke, CEO of New Murabba Development Co., described the ambitious scale and vision of the building which is being developed under the patronage of the Crown Prince Mohammed bin Salman.
“Mukkab is a structure, it will be pound for pound, I think the world’s most complex structure ever created known to man or woman in the history of time,” said Dyke.
“We have a structure which is 400 meters by 400 meters above the ground. We’re talking about a structure which will look at more than 1,000 meters above sea level,” he said.
While much of the focus is on the Mukaab’s above-ground presence, Dyke began dissecting the project by emphasizing the vast underground development.
“Below the ground is enormous as well. It’s a complete cavernous labyrinth of various different asset classes,” he explained, adding: “One example, the retail under Mukaab and around Mukaab is the size of Dubai Mall today and will be capable of extending to be bigger. So that’s just a small example of what you don’t see because it’s under the ground.”
The design is set to feature multiple skyscrapers within the structure.
“We will have something like two to three Empire State Buildings on each corner, which anchor the four corners of Mukaab,” said Dyke, adding: “We will have a dome which will be something in the order of about 360,000 sq. meters, which will be 380 meters high by 340 meters in diameter inside what effectively is the equivalent of Empire State Buildings.”
At the center of the Mukaab, a tower will stand as a unique architectural feat, which, according to Dykye, “will be the only skyscraper in the world that lives inside another building, which will be an equivalent size of the Eiffel Tower, but will be fully inhabited.”
There will be 27,000 people moving around the lower levels of the tower at any point in time. The structure will also feature “the world’s largest roof on the top at 16 hectares, which will be a fully living space.”
Additionally, the Mukaab’s design incorporates Riyadh’s architectural heritage with a fully activated Najdi facade, he said, adding that it is “the most beautiful Najdi facade that reflects the architectural history of the Kingdom.”
Dyke believes the structure will offer an immersive experience unlike any other, saying: “When you are inside the dome, you will be transported to other worlds. The worlds will change frequently, and you will not be able to see the dome when you’re inside it because we’re creating that.”
He explained that the project incorporates advanced technological layers to create an immersive experience, with applications in hospitality, retail, and entertainment.
In a separate panel, Marco Macagnano, head of Digital Real Estate Canada at Deloitte, highlighted the importance of innovation in real estate, emphasizing that modern developments should go beyond static assets.
“It means additional capital to the bottom line innovation products, and it also importantly provokes a new approach to real estate, where we’re not just maintaining or stabilizing our assets, but we’re investing in constant improvement— buildings that upgrade, not just flexible, but upgradable buildings that can automatically turn on new features with a software update, as opposed to installing new systems,” he said.
This perspective aligns with the vision behind Riyadh’s Mukaab, which aims to integrate latest technology and flexible infrastructure.
Macagnano further pointed out that large-scale projects, when designed with a systems-thinking approach, have the potential to redefine business and economic environments.
“The bold approaches to massive investments in infrastructure, big projects that can think about the ecosystem as a whole put Saudi Arabia in an incredible position to differentiate,” he said.
He emphasized that new developments should not be constrained by outdated infrastructure but instead be designed for future adaptability.
Beyond its architectural complexity, Dyke highlighted the economic and social impact of New Murabba as a whole.
“The economic stimulus that New Murabba will create upon full completion, when all three phases are built out, we’re talking about 400,000 people living in New Murabba. We’re talking about tens of millions of people visiting Mukaab every year. And we’re talking about a whole economy that will not be separate from Riyadh,” he said.
A key element of the development is the introduction of higher-density living in Riyadh. “New Murabba will have a characteristic of mid and high-level living,” Dyke noted.
“That’s one thing which creates an opportunity, which creates this livability aspect, and above and beyond that, the density of people within New Murabba will be in the order of 20,000 people per sq. km, compared to 4,000 today,” Dyke added.
