Taiwanese technology companies, especially those engaged in semiconductors, are facing their greatest ever challenge not only recruiting talent, but also retaining it. Last year was the toughest period in about seven years for semiconductor firms, with job openings reaching a peak of 34,000 in the fourth quarter, a survey by 104 Job Bank found. That meant each semiconductor jobseeker had a choice of 3.7 positions on average.
There are no signs that the labor squeeze is easing, as the job consultancy’s latest survey showed that, as of last month, the information technology industry as a whole still had 197,000 vacancies.
As a result, the talent war has become even fiercer this year. Most companies in the semiconductor supply chain are scrambling to roll out perks in an attempt to attract as much talent as possible, even if it results in higher operating expenses. Taiwan Semiconductor Manufacturing Co (TSMC) has this year reportedly hiked wages for new employees by 25 percent, more than double the 5 to 10 percent for most of its employees. That followed a 20 percent structural pay raise last year, with an aim to elevate the salaries of entry-level employees.
In addition to the pay raise, the company plans to roll out a program to create a more cohesive working environment by subsidizing employees’ purchases of company shares for the first time in its 35-year history. The company has not yet released details, but the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) said the chipmaker is looking at a cap of 15 percent of total stock purchases. The subsidy would be available to all of its 50,000 employees when it takes effect, in July at the earliest, the report said. Moreover, to retain C-suite executives, TSMC started offering restricted stocks for three years from this year in different stages.
TSMC’s human resources team has a high goal to reach this year. The company needs 8,000 engineers, as it is expanding capacity significantly at home and in the US and Japan. To lower its new employee churn rate of about 15 percent and improve employee relationships, TSMC last year scrapped a social media ban at work, allowing employees to use platforms such as Line and Facebook with restricted features.
MediaTek Inc, the world’s largest 5G handset chip supplier, is offering an annual compensation package of NT$2 million (US$67,843) for new graduates with a master’s degree, or NT$2.5 million for those with a doctorate. MediaTek aims to recruit 2,000 engineers this year. To foster talent, the chip designer this year plans to double the number of summer interns from colleges and universities, with each to be awarded NT$100,000.
Joining the fray are smaller-scale companies like Win Semiconductors Corp, the world’s largest pure-play gallium arsenide foundry, and Chunghwa Precision Test Technology Co, provider of chip testing and wafer probing services to top global firms. The two companies have said that offering competitive compensation is crucial to retaining talent and bolstering research and development to ensure continued growth. This has raised eyebrows among investors, given the higher operating expenses that come with offering higher remuneration. Win Semiconductor, for one, reported that operating expenses as a percentage of revenue surged to 14 percent in the first quarter from about 10 percent each quarter in the past few years.
Given an aging population and declining numbers of college and university enrollment, it is almost certain that the labor shortage will continue to be an issue for technology companies. Student numbers are expected to slide from 114 million this year to below 100 million in 2028, Ministry of Education data show.
Technology companies might also have to contend with a changing perception about work, as younger people look for a better work-life balance. The long hours that working at technology companies entail might no longer make it a dream job for many.
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