China’s pursuit of overseas chip talent continues amid US restrictions

China’s provincial and municipal governments are actively participating in the drive to recruit tech experts, with programs like the Kunpeng Plan in Zhejiang province and initiatives in other regions striving to attract talent with generous incentives, including rewards, funding, and housing support.

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China has discreetly recommenced its efforts to attract international chip experts as the United States tightens its regulations on the semiconductor sector. 

Previously, between 2008 and 2018, China executed the Thousand Talents Plan (TTP) to enlist foreign-trained scientists, causing concerns for the US around potential threats to its technological dominance. 

The TTP was shelved in 2018 amid US investigations. However, China has since revived the initiative with a different name and structure, aiming to bolster its technological proficiency in line with its broader tech advancement mission.

In a comprehensive review of over 500 government documents from 2019 to 2023, Reuters unveiled this revamped recruitment drive, revealing enticing incentives such as housing subsidies and sizable signing bonuses ranging from 3 to 5 million yuan ($420,000 to $700,000). 

The new program, known as Qiming, has surfaced as the primary successor to the TTP. It operates under the purview of the Ministry of Industry and Information Technology and targets both overseas Chinese and foreign experts.

US restrictions
The resurgence of China’s efforts to draw foreign talent comes as President Xi Jinping underscores the nation’s necessity for semiconductor self-sufficiency amidst US restrictions on semiconductor exports. 

In October, the US Commerce Department introduced regulations that limit the involvement of US citizens and permanent residents in supporting advanced chip development and production in China.

While the US has accused China of intellectual property theft, China contends that its overseas recruitment, including the TTP, aims to foster an innovation-driven economy while respecting intellectual property rights. 

The new Qiming program operates in more discreet ways, focusing on sensitive and classified areas like semiconductors, and does not publicize its awardees. This approach is in contrast to its predecessor and is an effort to navigate the sensitivity of the situation.

Tackling talent shortages
According to Reuters and other education sources, China’s chip industry has been flourishing but faces a shortage of around 200,000 professionals this year, which includes engineers and chip designers. This has prompted China to intensify its efforts to attract overseas experts through talent initiatives like Qiming. 

These new initiatives particularly target applicants who have been educated at top foreign institutions, with a strong preference for those who have earned their doctorates from prestigious universities such as MIT, Harvard, and Stanford.

The efforts to curb the leakage of intellectual property through talent flows have been challenging, as such measures could inadvertently escalate into contentious situations. China’s provincial and municipal governments are actively participating in the drive to recruit tech experts. Programs like the Kunpeng Plan in Zhejiang province and initiatives in other regions are striving to attract talent with generous incentives, including rewards, funding, and housing support.

Despite China’s push for talent recruitment, many overseas Chinese semiconductor experts remain cautious due to China’s political landscape and relative weakness in chip development compared to the West. Concerns include potential sudden changes in policies or a loss of government support. Some experts are seeking roles in Chinese chip companies’ overseas divisions as a safe alternative.

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