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
World Defense Show 2026 to showcase record number of Chinese companies in Riyadh
RIYADH: The third edition of the World Defense Show, scheduled to take place in Riyadh from Feb. 8-12, 2026, has secured a record number of participants, with more than 100 companies from China confirmed to take part.
Notably, the China Pavilion has already filled 88 percent of its exhibition space, making it the second-largest national presence at the event, surpassing even the host nation, Saudi Arabia.
This strong participation underscores the growing global appeal of the show. Since its debut, WDS has seen impressive growth, with exhibition space expanding by 54 percent between 2022 and 2026, more than doubling its size. As of now, over 50 percent of the total floor space for WDS 2026 has already been sold.
The announcement follows the successful conclusion of the second edition of WDS, which hosted 773 exhibitors from 76 countries, facilitated SR 26 billion ($6.9 billion) in deals, and attracted 106,000 trade visits.
“The significant interest and commitment from Chinese exhibitors is a testament to the prominence WDS holds in the global defense space,” said Andrew Pearcey, CEO of World Defense Show.
“Our goal is to bring together global and local stakeholders to advance networking opportunities, strengthen global knowledge-sharing, and shape the future of defense technology,” he said.
The high level of interest from Chinese firms was also evident at the 15th Airshow China in Zhuhai, held from Nov. 12-17. Senior WDS representatives attended the event to engage with potential exhibitors, offering them the opportunity to secure their space at WDS 2026, which is rapidly filling up.
Closing Bell: Saudi main index rises to close at 11,811
- Parallel market Nomu gained 9.64 points, or 0.03%, to close at 29,477.35
- MSCI Tadawul Index also gained 4.49 points, or 0.30%, to close at 1,485.85
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 20.80 points, or 0.18 percent, to close at 11,811.98.
The total trading turnover of the benchmark index was SR4.22 billion ($1.12 billion), as 115 of the stocks advanced and 116 retreated.
The Kingdom’s parallel market Nomu gained 9.64 points, or 0.03 percent, to close at 29,477.35, with 41 listed stocks advancing and 41 declining.
The MSCI Tadawul Index also gained 4.49 points, or 0.30 percent, to close at 1,485.85.
The best-performing stock of the day was The Mediterranean and Gulf Insurance and Reinsurance Co., whose share price rose 9.96 percent to SR20.98.
Other top performers included Saudi Reinsurance Co. and Thimar Development Holding Co., with their share prices increasing by 6.89 percent to SR38.80, and 6.04 percent to SR43.90, respectively.
The share prices of Saudi Cable Co. and The Co. for Cooperative Insurance also surged by 5.39 percent and 5.08 percent to SR97.70 and SR132.40, respectively.
The worst performer was Arriyadh Development Co., whose share price dropped by 5.27 percent to SR26.05.
Other notable decliners included Alistithmar AREIC Diversified REIT Fund and Red Sea International Co., whose share prices fell by 3.68 percent to SR9.43, and 3.34 percent to SR66.50, respectively.
Zamil Industrial Investment Co. and The National Co. for Glass Industries also saw declines, with their share prices falling by 3.33 percent to SR26.15, and 3.14 percent to SR49.40, respectively.
On the announcements front, Amwaj International Co. disclosed its board of directors’ recommendation to distribute SR6 million in cash dividends to shareholders for the fiscal year ending Dec. 31.
According to a statement on Tadawul, the dividends will cover 6 million eligible shares, with a payout of SR1 per share, representing 10 percent of the share’s par value.
Amwaj International Co. concluded the trading session at SR42, marking an impressive 18.57 percent increase.
Arab Sea Information Systems Co. announced updates regarding its project with the Al-Madinah Region Development Authority for managed IT services.
The company was notified of the decision to cancel the competition due to procedural violations identified following a grievance by a competitor, according to a filing on Tadawul.
The grievance was filed before the award decision or in opposition to it and the company clarified that no costs are associated with the development.
Arab Sea Information Systems Co. closed the session at SR7.13, down 0.84 percent.
Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
- UAE and Saudi Arabia were the top investment destinations, accounting for 52% of the region’s total deal volume and 81% of deal value
- Sovereign wealth funds played a key role in driving M&A activity in the region
RIYADH: Saudi Arabia and the UAE led Gulf region merger and acquisition activity, which increased 7 percent in value to $71 billion in the first nine months of the year.
According to EY’s MENA M&A Insights 9M 2024 report, the Middle East and North Africa region saw a total of 522 deals during the period, with deal volume rising 9 percent year on year.
The value growth was largely fueled by a surge in cross-border transactions and substantial investments from sovereign wealth funds, such as the UAE’s Abu Dhabi Investment Authority and Mubadala, and Saudi Arabia’s Public Investment Fund.
Brad Watson, EY MENA strategy and transactions leader, said: “Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalization of investment regulations and robust capital inflows from investors.”
He added: “With companies actively seeking opportunities to grow and diversify their operations, we have observed a surge in cross-border M&A volume and value.”
The UAE and Saudi Arabia were the top investment destinations, accounting for 52 percent of the region’s total deal volume and 81 percent of deal value, with 239 transactions worth $24.5 billion. Both nations continue to benefit from their favorable business environments and strategic economic policies.
“In particular, the UAE remained a favored investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework,” said Watson.
Sovereign wealth funds played a key role in driving M&A activity in the region, supporting national economic strategies. These funds were particularly active in sectors aligned with long-term diversification plans, such as technology, energy, and infrastructure.
Cross-border M&A deals dominated, representing 52 percent of the overall volume and 73 percent of the value, the report added.
However, domestic M&A activity also saw a notable increase, rising 44 percent year on year to $19.3 billion, driven by government-related entities making significant acquisitions in the oil and gas, metals and mining, and chemicals sectors.
Insurance and oil and gas emerged as the most attractive sectors, accounting for 34 percent of the total deal value. Technology and consumer products led domestic M&A by volume, with 78 deals representing 31 percent of activity.
Saudi Arabia recorded the region’s largest domestic transaction, with energy giant Aramco’s $8.9 billion acquisition of a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Sumitomo Chemical.
The US remained a top target for MENA investors, with 32 deals valued at $18.3 billion. The US-UAE Business Council helped facilitate these partnerships, with prominent US firms collaborating with UAE public and private sectors on various initiatives.
Outbound and inbound deals
Outbound M&A was the largest contributor to deal value, with 147 transactions totaling $41.4 billion, led by insurance and real estate investments. The US and China represented 70 percent of outbound deal value.
Inbound deals also witnessed growth, rising 20 percent in volume and 47 percent in value to $10.4 billion. The US and UK were the leading contributors, driving activity in technology and professional services.
Mega deals
Ten of the region’s largest deals were concentrated in the Gulf Cooperation Council. These included Mubadala and partners’ $12.4 billion acquisition of Truist Insurance Holdings and an $8.3 billion investment in Chinese shopping mall operator Zhuhai Wanda Commercial Management Group.
“Strengthening regional relationships with Asian and European economies, alongside existing ties with the US, enabled MENA countries to gain access to larger and growing markets,” said Watson.
As Gulf nations continue diversification strategies and prioritize digital transformation, sectors like technology, energy, and infrastructure are expected to drive further M&A growth. Saudi Arabia and the UAE’s proactive policies and substantial sovereign wealth fund activity position the region as a global investment hotspot.
Craig Smith explores the media’s role in AI conversations
RIYADH: The media’s primary role is to translate complex ideas into digestible content for the public, said Craig Smith, host of the Eye on AI podcast and a former correspondent.
In a recent conversation with the Saudi Data and Artificial Intelligence Authority’s GAIN podcast, Smith discussed the rapidly evolving field of artificial intelligence and the challenges media faces in accurately covering it amid both excitement and misinformation.
“You can put AI in a robot, but robotics is one field, and AI is another,” Smith explained, stressing the need for more precise portrayals of AI in the media.
As AI discussions have intensified in the past two years, particularly around its potential threats, Smith emphasized that these debates are meant to encourage further research into AI safety and prompt regulation. However, he noted that the popular press often misinterprets the purpose of these discussions, leading to sensational headlines that contribute to widespread fear.
“The purpose of that discussion is to generate more research around the safety of AI and to spur regulation to get the governments looking at what’s happening,” Smith said.
“But the media often misses this goal, resulting in alarmist narratives like AI will ‘kill us all,’ which detracts from the vital work of understanding and regulating this technology.”
While it’s easy to imagine a dystopian future for AI, Smith pointed out the far more nuanced reality. “We’re still working on getting large language models to be truthful and stop spouting nonsense,” he said, illustrating the long and challenging path ahead in developing reliable AI systems.
Reflecting on the rapid pace of change in the field, Smith highlighted the exciting progress in AI research, particularly since the introduction of the transformer algorithm in 2017.
“It was Ilya Sutskever at OpenAI who built a model around the transformer algorithm and scaled it up,” Smith noted, acknowledging the profound impact this algorithm has had on the development of large language models like ChatGPT and Claude.
Smith’s insights underscored the media’s crucial responsibility in accurately covering AI. By bridging the gap between complex technological advancements and public understanding, journalists have the power to foster informed discussions that will ultimately shape the future of AI in society.
Oman’s non-oil sector grows 4.2% in H1
- Non-oil sector contributed 13.5 billion Omani rials to GDP
- Oman’s banking sector saw positive growth in the first half of 2024
RIYADH: Oman’s non-oil sector experienced a 4.2 percent growth year on year in the first half of 2024, driven by the country’s strategic focus on economic diversification as outlined in its 10th Five-Year Plan (2021-2025).
In an interview with the state-run Oman News Agency, Nasser Al-Mawali, undersecretary of the Ministry of Economy, highlighted that this expansion marks significant progress in Oman’s efforts to reduce its dependency on oil revenues and build a more resilient economic base, in line with the objectives of Oman Vision 2040.
By mid-2024, the non-oil sector contributed 13.5 billion Omani rials ($35.1 billion) to the country’s gross domestic product, up from 13 billion rials during the same period in 2023. This sector now accounts for 72.2 percent of Oman’s GDP at constant prices.
Al-Mawali attributed the continued growth in non-oil activities to national programs aimed at accelerating economic diversification and expanding the productive capacity of the economy. The 10th Five-Year Plan, which forms the first phase of Oman Vision 2040, prioritizes increasing private sector participation, supporting small and medium-sized enterprises, and broadening the country’s economic base.
According to Al-Mawali, strategic initiatives under this plan have reached a 90 percent implementation rate as of 2024, with major accomplishments in sectors such as green hydrogen, logistics, pharmaceuticals, and fisheries.
Foreign direct investment in Oman reached approximately 26 billion rials by mid-2024, up from about 17.8 billion rials at the end of 2021.
The country’s overall GDP, at constant prices, grew by 1.9 percent in the first half of 2024, rising from 18.4 billion rials to 18.7 billion rials compared to the same period in 2023. At current prices, GDP increased from 20.4 billion rials to nearly 21 billion rials.
While the non-oil sector posted strong growth, Oman’s oil sector experienced a 2.5 percent decline during the same period, primarily due to a 4 percent drop in crude oil production. On a more positive note, natural gas activities saw a 6.6 percent increase, providing a boost to the energy sector.
Al-Mawali emphasized that the rise in non-oil activities has helped provide a stable foundation for economic growth, buffering the country against fluctuations in global oil prices. Key projects, such as the Duqm Refinery and the development of the integrated economic zone in Al-Dhahirah in partnership with Saudi Arabia, have significantly bolstered Oman’s industrial capabilities and enhanced export potential.
The Duqm Refinery, inaugurated earlier in 2024, is expected to play a crucial role in increasing the manufacturing sector’s contribution to GDP.
Oman Vision 2040 targets an average annual GDP growth rate of 5 percent. So far, the country has achieved a growth rate of around 4.5 percent over the first three years of the 10th Five-Year Plan, indicating strong progress toward this goal.
The 10th Five-Year Plan also aims for an annual growth rate of 3.2 percent in the non-oil sector, with a long-term objective of increasing the sector’s contribution to GDP to 90 percent by 2040.
On a separate note, Oman’s banking sector saw positive growth in the first half of 2024, with total credit rising by 5 percent, reaching 32 billion rials by the end of September. Credit extended to the private sector increased by 4.2 percent, amounting to 26.7 billion Omani rials.
The majority of this credit was allocated to non-financial corporations, which accounted for 45.2 percent, followed by individual borrowers at 45 percent. Financial corporations received 6.3 percent, and other sectors made up the remaining 3.5 percent.
Total deposits in Oman’s banking sector grew by 13.7 percent, reaching 31.6 billion rials as of September. Private sector deposits saw a significant increase of 12.7 percent, totaling 20.7 billion Omani rials.
According to the Central Bank of Oman, individuals held the largest share of private sector deposits at 50.2 percent, followed by non-financial corporations at 29.5 percent, and financial corporations at 17.8 percent. Other sectors accounted for 2.5 percent of the total private sector deposits.
