Staff with access to sensitive Zeiss know-how reported receiving LinkedIn messages, emails, and calls from Huawei representatives offering up to three times their salaries to join the Chinese tech giant.
When Zeiss employees reported Huawei’s poaching attempts, they shared recruiter profiles with their managers, triggering a German intelligence investigation. No employees left Zeiss for Huawei.
The push triggered an investigation by German spooks, who feared it could provide Huawei with access to some of the world’s most sophisticated intellectual property.
This development is the latest indication that talent-poaching has become a critical front in the tech battle between China and the West. As Western governments increasingly restrict China’s access to sensitive technologies, many Chinese companies are trying to stay ahead by luring top engineers in fields such as advanced semiconductors and artificial intelligence.
Chinese firms are focusing on tech hubs in Taiwan, parts of Europe, and Silicon Valley. Some obscure their Chinese origins by forming local ventures to hire employees and avoid attracting the attention of local officials, authorities say.
The aggressive recruitment is prompting officials in the US and Europe to reconsider whether they need to implement measures to police such practices.
Taiwan, already with strict rules on Chinese recruitment, launched a crackdown in September, accusing eight mainland Chinese tech firms of illegally poaching talent and threatening the island’s competitiveness.
South Korean authorities are increasing penalties for individuals who transfer sensitive technologies to foreign countries like China. The US and Europe remain relatively open to recruitment by Chinese companies, but European intelligence officials are concerned about China-linked actors attempting to lure experts from high-tech companies on the continent.
Western security officials are particularly worried about China’s efforts to target ASML Holding and its suppliers, including Germany’s Zeiss.
ASML is the only firm globally capable of making sophisticated EUV scanners essential for advanced AI applications. Without these machines, China cannot produce cutting-edge chips.
Since 2021, Huawei has hired dozens of engineers based in China who previously worked on lithography and optics for firms like ASML, data from LinkedIn and Chinese job networking site Maimai shows. A former Taipei-based ASML employee said he received monthly recruitment attempts from Chinese companies, particularly Huawei, after leaving the firm in 2020.
ASML stated that it had no indication of unusual recruitment activity toward its employees, with low employee turnover rates globally.
China’s Foreign Ministry said it was unaware of specific talent poaching examples, adding that China’s interaction with foreign talent is no different from other nations. Huawei did not respond to requests for comment.
China has prioritised recruiting top talent, particularly in competitive technologies like AI. The 2017 government blueprint for AI development emphasised attracting international top scientists.
According to DGA Group partner Paul Triolo luring foreign engineers provides Chinese firms with a valuable shortcut due to their irreplaceable experience.
Many engineers are hesitant to accept such offers, citing reputational risks and cultural fit concerns. Nonetheless, Chinese companies’ aggressive recruitment strategies, described by a former Huawei recruiter as “spray and pray,” inevitably attract some candidates.
German officials are also worried about China’s recruitment efforts targeting suppliers of ASML, including Zeiss SMT.
As China continues its aggressive recruitment campaign, the West grapples with how to respond to protect its technological edge. The outcome of this battle will have significant implications for global tech supremacy in the years to come.
