Semiconductor giant SMIC rewards senior Taiwanese executive with hefty compensation as China builds up chip sector’s hi-tech talent pool

Semiconductor Manufacturing International Corp (SMIC) more than quadrupled the salary of a senior Taiwanese executive and gifted him with a flat worth 22.5 million yuan (US$3.4 million) last year, according to the firm’s latest annual report, providing a testament to how the world’s second-largest economy is spending lavishly to woo and retain talent in its chip industry.

That hefty compensation package was given by SMIC, China’s largest contract maker of integrated circuits (ICs), to its 69-year-old co-chief executive Liang Mong-song, an industry veteran who previously worked as a senior director for research and development (R&D) at Taiwan Semiconductor Manufacturing Co (TSMC), according to the report published last week.

SMIC’s annual report, which stated record-high revenue for the company in 2020, did not provide specific reasons for the sharp rise in compensation for Liang. He remains the company’s co-chief executive along with Zhao Haijun, according to recent corporate filings.

It is not known whether that package helped convince Liang to stay on at SMIC, which is the world’s fourth-largest chip foundry and China’s best hope to boost its self-sufficiency in semiconductors. The company declined to comment on Wednesday.