China’s economy remains sluggish, and domestic consumption is also sluggish. According to the Economic Observer, Shi Li, director of the Institute for Cooperative Prosperity at Zhejiang University, estimates that 900 million people, or 65% of the population, have a monthly income of less than 3,000 yuan (approximately US$410), and categorizes them as follows: It is classified. Low income.
Citing data from JW Insights, Yicai Global reported that the average annual income of China’s semiconductor industry will reach RMB 340,000 in 2024, which is 100 times the income of the country’s 900 million low-income people. Holders of a Ph.D. with more than 10 years of experience earn an even higher annual salary, averaging 1.05 million yuan.
The wave of Chinese chip design company bankruptcies stems from the 2021-2022 semiconductor investment boom. Analysts highlight technological decoupling, weak supply chains and intense domestic competition as factors behind the closure due to rapid capital-driven growth.
China’s semiconductor industry at a crossroads in 2023
According to CINNO Research, investment in semiconductor projects in China will decrease from 1.5 trillion yuan in 2022 to 1.2 trillion yuan in 2023, down 22% year-on-year. This decline came after years of rapid industry expansion.
The rise and fall of Oppo’s Zeku
Oppo’s IC design subsidiary Zeku has been disbanded due to unsustainable SoC development costs. Its closure led to a diaspora of talent and contributed to a sharp decline in China’s semiconductor investment.
Chip R&D salaries jumped 1-2x from 2021 to 2022, with up to 6x increases for key roles, according to industry insiders. Capital-backed startups aggressively poached engineers from large IC companies and multinationals, offering significantly higher salaries.
The talent gap has made it possible for people with no chip design experience to enter the field. Employees at major IDMs have reported that wafer manufacturing process engineers have been lured into chip design jobs at startups by higher pay.
Zeku aggressively expanded its workforce during the 2021-2022 economic boom. According to Tianyancha data, Zeku Technology (Shanghai) and Zeku Technology (Beijing) had more than 1,700 employees enrolling in social insurance in 2021, an increase of 100% compared to 2020. By 2022, that number will exceed 2,500, a 50% increase over 2019. This is mainly due to the following factors: Competitive salary.
The semiconductor market downturn in 2023 ended the previous year’s hiring frenzy. Offers to double salaries have become rarer, and companies have adopted more conservative hiring strategies.
From hiring frenzy to industry impact and cautious hiring
Financial pressure on companies is increasing due to sluggish funding in the semiconductor market. Nevertheless, R&D salaries remain strong, with process and equipment engineers earning an average annual salary of RMB 200,000, an increase of 7% to 8% from 2023.
Digital and analog chip engineers continue to earn higher salaries than other occupations, with average salaries exceeding RMB 500,000 in 2024, despite a decrease of 1% to 8% from 2023.
Demand for sales engineers and managers remains high, with salaries increasing by 4% to 200,000 yuan and 300,000 yuan per year, respectively. These roles require extensive semiconductor sales experience and strong customer relationship management skills.
