Local semiconductor companies yesterday called on the government to adjust the accounting principles for issuing stock bonuses for employees in order to put the brakes on a talent drain.
Since 2008, companies have had to book stock bonuses for employees as an expense, which creates a burden for companies, semiconductor company representatives said yesterday during talks with Minister of Economic Affairs Chang Chia-juch (張家祝).
Semiconductor firms in South Korea, Japan and China are expanding and recruiting talented people from around the world, putting pressure on local companies to retain their employees, company representatives said.
International competition is becoming increasingly more severe as South Korean semiconductor firms integrate upstream and downstream companies, and the Chinese government provides subsidies for companies to expand their global market share, the representatives said.
They also urged the government to ease the regulations on hiring foreign white-collar workers, especially workers from China, to help them overcome a shortage of local talent.
Because the language barrier between Taiwanese and Chinese presents less of an obstacle than in the case of workers from non-Chinese-speaking countries, Chinese employees are the most suitable foreign employees for local firms, representatives said.
They also proposed that the government come up with a policy to counteract China’s subsidies and expedite the development of the fifth generation of telecommunications services.
The Ministry of Economic Affairs said it would propose a solution after looking at the opinions of local firms, as well as other government departments.
According to data compiled by the ministry’s Industrial Development Bureau, the output of local the semiconductor industry was NT$1.54 trillion (US$51.3 billion) last year.