China Needs 250,000 IC Engineers in Next Six Years

by Paul Denlinger

Posted April 8, 2004

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According to a recent survey, China is suffering from a severe shortage of integrated circuit designers and engineers for chip manufacture. This is a current weakness for China's new and growing chip industry. In 2002, there were only 12,000 IC engineers in China.

China's new chip fabs, such as SMIC, have attracted considerable attention, particularly in the US. Recently, the US government has filed a complaint, stating that the Chinese government favors Chinese companies, at the expense of non-Chinese companies by offering tax rebates to domestic Chinese manufacturers. The Chinese government has identified chip manufacture as a key industry for the country, which makes financial and tax incentives available to investors. Other leading individuals, such as Craig Barret, Intel CEO, have expressed discomfort as an American citizen, at the large number of IT jobs going to China, and the US's shrinking technology lead.

Taiwan's leading chip fab, TSMC, has also taken legal action against SMIC regarding intellectual property.

The reported shortage of IC engineers in China, underlines that the chip fab business is comparatively new, and currently serves foreign buyers, just as Taiwan's fab industry does. In comparison, China's domestic IC needs are relatively undeveloped and untapped.

Compared to China, Taiwan has a very well developed IC manufacturing industry. The most developed companies, such as TSMC and United Microelectronics, have large numbers of IC engineers and designers, who often take a very "hands-on" approach when serving small design houses with limited design resources.

While China is severely short of talent, large numbers of IC engineers and designers are now relocating from Taiwan because of the political turmoil following Taiwan's presidential election in March. A significant number of ethnic Chinese IC engineers in the US are also relocating to China to fill the current demand.

 

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