China is taking a new approach to its efforts to work around the West’s growing export restrictions on semiconductor tech, going straight to the source and hiring engineers.
According to a report by The Wall Street Journal, German intelligence officials have been investigating an increase in attempts by Chinese firms to recruit personnel with access to Western semiconductor secrets. In particular, headhunters for Huawei were making a concerted effort to recruit employees from Zeiss SMT.
The US and its allies have engaged in a multi-year effort to restrict China’s access to the most advanced semiconductor technology. The US has used its export control regulation to restrict US firms and any firms worldwide that rely on US technology to make their products from exporting advanced chip tech to China.
Huawei, along with ZTE and a few others, has felt the brunt of the restrictions. The Commerce Department recently began preparing new restrictions that would impact 200 additional Chinese tech firms.
Faced with an ever-narrowing opportunity to remain competitive in the computer, mobile, and AI space, China clearly believes its best option is to recruit the engineers and personnel needed to be able to compete on its own merit, rather than rely on chip imports.
Moving forward, Western governments will likely have to address the issue directly if they intend on maintaining a technological lead over China.