Mon, May 08, 2006 page12

• Technology companies scramble to recruit engineers

  SHORTAGE Competition from firms in China is contributing to a lack of engineers in Taiwan, and companies here are turning to overseas Taiwanese to help fill the gap

  • By Jason Tan / STAFF REPORTER
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  Jack Lai (賴敏哲), a 36-year-old software developer working for Bloomberg LP in New York, had a job interview with local consumer IC design house Princeton Technology Corp (普誠科技) last Wednesday morning.

  But instead of flying to Taipei, he stayed in the US, and the 30-minute session took place via computer at a special recruitment pavilion set up at SemiTech Taipei 2006.

  The semiconductor exposition had set up the recruitment pavilion to help technology firms contact prospective employees, enabling firms like Princeton Technology to turn to overseas Taiwanese to fill vacancies.

  "Since the Sept. 11 attacks, the US government has been tough on immigrants. I have applied for a green card for the past six years, but was told my application has been left untouched," Lai told the Taipei Times shortly after his interview.

  After seven years in New York, including one year spent obtaining a masters degree from New York University, he has decided it is time to come home.

  "With my international exposure, I think this will be a plus on my job application in Taiwan," he said, his voice coming through the speakers on a slight delay.

  People living overseas who have work experience -- especially those in the US and UK -- are being sought by domestic technology firms, which have been facing engineer shortages in recent years.

  Statistics from the Industrial Economics and Knowledge Center suggest that from last year to next year the nation's technology sector will be short 20,000 research and development engineers.

  The semiconductor field will need around 5,000 extra engineers even if the sector's growth remains flat during the three-year period, it said.

  Monica Chiu (邱文仁), marketing director of 104 Job Bank (104人力銀行) -- the nation's largest human resources agency -- has seen large-scale recruitment by its high-tech clients, especially since 2004.

  "More companies started to introduce new services and products after the economy picked up in 2004, and the high-tech sector has been in need of extra manpower," she said.

  The problem is not that the educational sector has been unable to produce enough graduates, but that vendors have found it hard to locate candidates with the qualities to fit industry needs, Chiu said.

  Princeton Technology's experience attests to this.

  "We were having a tough time hiring qualified engineers and, starting last year, we lowered our requirements from seeking only those with masters degrees and related experience, to fresh graduates," said Jay Yeh (葉楚璿), a Princeton Technology personnel specialist who interviewed Lai.

  The Sindian-based company also faces competition for staff from big names such as United Microelectronics Corp (UMC, 聯電) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), as engineers prefer to work for these firms, which are located in the Hsinchu Science Park, Yeh said.

  Set up in 1980, the park is the nation's largest research and development (R&D) base with more than 40,000 engineers, who are dubbed the "high-tech elite."

  The race to find workers is set to heat up this year, as TSMC will hire 1,600 engineers, and Powerchip Semiconductor Corp (力晶半導體) is set to employ another 600.

  Chipmaker Inotera Memories Inc (華亞科技) has openings for 500 R&D staff, and more might be needed, according to a human resources manager who asked not to be named.

  "Our second fabrication facility will start running in November, and most of the major recruitment is for this plant," he said.

  Of the 1,000 engineers working for Inotera Memories, 5 percent are foreign -- mainly from the US, Germany, India and Austria.

  The company will be looking for more foreign expertise in the future, he said.

  The shortage of workers can be attributed to competition from firms in China, as more Taiwanese have opted for R&D jobs there.

  "Some Chinese companies can now afford to pay the same as us, or even offer a higher level to attract foreigners. The lower living costs there allow Taiwanese to live a comfortable life," Yeh from Princeton Technology said.

  Data from 104 Job Bank indicated that the number of jobs created by Taiwanese companies in China last month was up 22 percent compared with the same period a year ago.

  The majority of such jobs were in R&D, the company said.

  Meanwhile, the title of "high-tech elite" seems to be losing some of its sheen in Taiwan, as technology firms are mulling changing the way they reward staff with share bonuses.

  Since the late 1980s, with UMC as the pioneer, technology firms have been giving away share bonuses to employees as a part of their salary package, a strategy used to help retain employees.

  But this could change this year, because a new alternative-minimum-tax law requires those whose annual earnings exceed NT$6 million (US$189,934) to pay taxes on stock they receive as part of their bonuses.

  Chiu from 104 Job Bank suggested that instead of luring staff with competitive salary packages, enterprises should put more effort into creating a working environment where employees enjoy themselves and have fun.

  Creating a friendly ambiance -- including dining, leisure and sports facilities -- will improve work quality and attract top-notch engineers, who have to work long hours each day, she said.

  Despite the uncertainties, Chong Lit Ho (張力禾) is still looking forward to taking up a device engineer post with flash memory chipmaker Macronix International Co (旺宏) in July.

  The Malaysian, who will receive his doctorate in electronic engineering from the University of Southampton in the UK this month, has decided to develop his career in Taiwan with his wife.

  "Taiwan is one of the global semiconductor centers and it is where the industry is going to develop in the next decade," he said, explaining why he chose Taiwan.

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