China's economy remains on a downward trajectory, with weak domestic consumption. According to The Economic Observer, Shi Li, Dean of the Institute for Common Prosperity at Zhejiang University, estimates that 900 million people—65% of the population—earn less than CNY3,000 (approx. US$410) per month, classifying them as low-income.
Yicai Global, citing data from JW Insights, reported that the average annual salary in China's semiconductor industry reached CNY340,000 in 2024—100 times higher than the income of the country's 900 million low-income earners. Ph.D. holders with over 10 years of experience earn an even higher average of CNY1.05 million annually.
The wave of bankruptcies among Chinese chip design houses stems from the 2021–2022 semiconductor investment boom. Analysts highlight technological decoupling, weak supply chains, and fierce domestic competition as driving factors behind the closures that followed rapid, capital-fueled growth.
China's semiconductor industry at a 2023 crossroads
China's semiconductor project investments dropped 22% year-over-year to CNY1.2 trillion in 2023, down from CNY1.5 trillion in 2022, according to CINNO Research. The decline follows years of rapid industry expansion.
The rise and fall of Oppo's Zeku
Oppo's IC design subsidiary, Zeku, dissolved due to unsustainable SoC development costs. Its closure resulted in talent dispersal and contributed to the sharp decline in China's semiconductor investments.
During 2021–2022, chip R&D salaries surged 1–2 times, with key roles seeing up to sixfold increases, according to industry insiders. Capital-backed startups aggressively poached engineers from leading IC firms and multinationals by offering substantially higher pay.
The talent gap allowed individuals without chip design experience to enter the field. Employees from leading IDMs reported that process engineers in wafer manufacturing were enticed by high salaries to transition into chip design roles at startups.
Zeku aggressively expanded its workforce during the 2021–2022 boom. Tianyancha data shows that Zeku Technology (Shanghai) and Zeku Technology (Beijing) enrolled over 1,700 employees in social insurance in 2021, a 100% increase from 2020. By 2022, the number exceeded 2,500—50% higher than in 2019—driven largely by competitive salaries.
The 2023 semiconductor market downturn ended the hiring frenzy of prior years. Salary-doubling offers have largely disappeared, with companies now adopting more conservative recruitment strategies.
From hiring frenzy to industry fallout and cautious recruitment
The semiconductor market's financing slowdown has heightened financial pressures on companies. Despite this, R&D salaries remain resilient, with process and equipment engineers earning an average annual salary of CNY200,000—up 7%–8% from 2023.
Digital and analog chip engineers continue to earn higher salaries than other roles, averaging over CNY500,000 in 2024, despite a 1%–8% decline from 2023.
Sales engineers and managers remain in high demand, with salaries rising by 4% to CNY200,000 and CNY300,000 annually, respectively. These roles demand extensive semiconductor sales experience and strong client relationship management skills.