Why Hardware Engineers Earn Less Than Software Engineers: Supply‑Demand, Market Value, and Skill Perception

In a recent Zhihu discussion, the author examines the puzzling question of why hardware engineers, despite facing higher technical challenges, are paid less than software engineers in China.

Answer 1 – Supply‑Demand and Industry Characteristics The author argues that the primary driver is the imbalance between the number of engineers and the demand from companies, combined with industry profit margins. Software, as an information‑processing industry, has low marginal costs and can scale rapidly, creating massive demand for software talent, whereas hardware serves as infrastructure with slower turnover and limited demand.

Answer 2 – Market Demand Determines Market Value The discussion highlights that salary is not linked to technical difficulty but to market demand. While hardware may be harder to learn, the market for hardware engineers is far smaller than that for software engineers, leading to lower compensation. The author also notes that many hardware roles (especially board‑level) have become routine, with reference designs reducing the need for deep expertise.

Answer 3 – Skill Value Is Independent of Difficulty Personal experience is shared: the author switched from hardware to software after realizing that a skill’s worth is dictated by how many employers need it, not how hard it is to master. High‑demand skills like front‑end development command higher salaries, whereas niche skills such as compiler engineering, despite being difficult, have limited demand.

The article concludes with career advice for hardware engineers, suggesting they seek positions in chip‑design firms or move leftward in the supply chain to improve salary prospects, while acknowledging exceptions in certain OEM/ODM companies.

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