Declining revenues,Career Prospects In The Semiconductor Industry，Brief Analysis Articles cost-cutting, and significant layoffs have caused many semiconductor companies, especially IC design firms, to tighten their non-R&D recruiting amidst a host of negative factors. Some IC design companies with bright performance in 2022 said that considering the uncertainty of the industry’s development prospects, the next talent recruitment action will be more cautious, as to when it can return to normal, some IC design companies said that they have to wait until the industry’s development is back on track.
In the past two years, in order to compete for talents, many IC design companies have been grabbing people with excessive salary and benefit levels, which will return to the normal level this year.
Recent Developments In The Semiconductor Industry
Semiconductor Industry Under Trade War
The trade friction between China and the United States in recent years has made more and more people realize that semiconductors have a strategic position in the development of China’s science and technology sector that cannot be ignored. Semiconductor is the top of the entire electronic information industry chain, is the basis for a variety of electronic end-products to operate, is widely used in consumer electronics, industrial and automotive end-markets, the semiconductor industry, the development of localization is imminent. In the upgrading of the science and technology industry, government support and capital attention, and even some industry insiders predict that semiconductor will be the largest technology wind mouth in China in the next five years.
Scarcity Of Talent In The Semiconductor Industry
Whether it is a boom in salary increases around 2021 or a cooling of the boom since the second half of 2022, the core factor is a shortage of talent, with the difference being that the shortage is severe in the 2021 timeframe and weakening in the 2022 timeframe. However, China’s semiconductor talent shortage will continue, and it is difficult to solve in the short term.
According to statistics, in 2022, mainland China chip professionals shortfall of more than 200,000 people, 2023 industry-wide talent demand will reach about 76.65 million people.
A semi-official report shows that by 2024, the Chinese mainland chip talent demand will reach 78.9 million people, and as of 2021, the total number of employees in the industry is about 57.07 million, the current talent reserves lag far behind the industry demand. In the 78.9 million people required in 2024, 40% of the IC design-related practitioners will reach 325,200 people.
For the chip talent shortage, Hudson Recruitment Business China Managing Director Song Qian said that the industry’s talent flow “is often a carrot (refers to candidates, job seekers) N pit (refers to the company), as long as he is willing to move, each pit can be a very high price to recruit, the average increase in salary is about 50%. Totally want to move the carrot to choose, I want which pit, I want to increase how much income.
In the past few years, the chip field of financing record highs, the first thing chip startups are recruiting, especially IC design companies, mostly small and medium-sized, in a full range of shortage of people, often only a few founding partners and get the financing, 90% of the team members have to be obtained through the recruitment of new members, either dug up from other enterprises experienced engineers, or fresh graduates The new members are either experienced engineers poached from other companies or fresh graduates, and due to the overall shortage of people in the industry, everyone is scrambling for them, and even graduates with a certain level of qualifications need to pay high salaries in order to get them.
Part Of The Chip Companies Frustrated?
After the dissolution event, a number of chip companies, headhunters have thrown olive branches, AIC also quickly organized a public service recruitment to help solve the current senior engineers “difficult to recruit”, to alleviate the structural mismatch of talent and other issues. The person in charge of the job market pointed out that the semiconductor industry has always been to wave forward and spiral upward development, different periods, stages may appear forward, stagnation, or even setbacks in the face, but this can not change the overall trend of the industry forward. Although since 2021, the global semiconductor market ups and downs significantly, semiconductor downstream demand shows structural differentiation, so that many practitioners feel the “core road bumps”. But the bumpy waves is the objective law, but also in the process of industrial development, “the title should be meaning”, in the face of difficulties and obstacles, there are still countless “chip people” are standing in the cockpit of the industrial giant wheel forge ahead into the future.
“In fact, in the semiconductor field of the job market, also presents a ‘fire and ice’ industry polarization characteristics, many companies are layoffs, while recruiting in certain areas, or even recruiting people.” Wang Hongrui, Human Resources Director of ASML China, pointed out, “This year, under the influence of the global recession and the Russia-Ukraine conflict, the employment situation is still characterized by greater uncertainty, but China’s economy still shows great resilience and toughness. As far as the semiconductor industry is concerned, according to a report released by Deloitte, the global semiconductor industry practitioners in 2022 is about 2 million people, and is expected to need to increase by 1 million people by 2030; and according to the China Semiconductor Association predicts that the total industry talent will reach about 790,000 by 2024, with a talent gap of about 230,000 people. It is not difficult to see that the global as well as China’s semiconductor talent demand gap is very large. Overall, although the industry is pre-cooled, ASML’s hiring demand this year is still optimistic.”