Growing talent gap in U.S. chip space emerges as makers spend billions

As manufacturers spend billions, there's a growing talent gap in the U.S. chip space

President Joe Biden signed the Chip and Science Act a year ago, and semiconductor companies across the United States pledged to spend $231 billion to build chip manufacturing hubs on American soil.Now that shovels are hitting the ground to start construction, companies are realizing how hard it is to find talent.

Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, said it had to delay production at its $40 billion Arizona plant due to a shortage of U.S. workers.The push to restart U.S. semiconductor manufacturing has fueled massive spending and with it concerns about the size of the skilled workforce.

President Joe Biden signed the Chip and Science Act a year ago, and semiconductor companies across the United States pledged to spend $231 billion to build chip manufacturing hubs on American soil. Now that shovels are hitting the ground to start construction, companies are realizing how hard it is to find talent.Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, said it had to delay production at its $40 billion Arizona plant due to a shortage of U.S. workers.

"We are always looking for more qualified industry professionals," said TSMC Arizona President Brian Harrison. "We are installing our unique facility in the United States and extremely advanced equipment."TSMC brings in workers from Taiwan to handle high-end equipment and train US workers. I just don't have experience with these particular tools and techniques,” Harrison said.

But not everyone is a fan of TSMC's approach. The Arizona Pipe Trades 469 union helped fund a website called "Stand with American Workers," which accuses TSMC of overlooking Arizona workers in favor of their Taiwanese counterparts in an effort to "exploit cheap labor."

But Harrison argued that's a misconception: "It's actually more expensive to bring in a worker from Taiwan, pay them a fair American wage while they're in the U.S., and pay for all their relocation, housing and support." Much of the chain's semiconductor supply is located overseas, meaning there are fewer skilled workers here in the U.S. at those facilities.

The U.S. chip industry is expected to grow by nearly 115,000 jobs by 2030, according to a new study by Oxford Economics and the Semiconductor Industry Association. The study found that 67,000 of those jobs for technicians, computer scientists and engineers could go unfilled by 2030 due to a lack of educational training programs and school funding.

Intel CEO Pat Gelsinger agreed that the industry's workforce could be more skilled, but placed some of the blame on TSMC for handling the challenges. , but they are very much a global company,” Gelsinger said."That said, we see that skilled labor - directly in the construction industry, as well as skilled labor for our factories - is something we need to work on," he added.

More than 50 community colleges have announced new or expanded semiconductor workforce programs since the CHIPS Act was passed last year.Student applications for full-time jobs posted by semiconductor firms rose 79% in the 2022-2023 academic year, compared with 19% in other industries, according to student job website Handshake. And many chip firms are investing heavily in building their own talent pipeline through partnerships with local middle schools, high schools, community colleges and universities.

Semiconductor manufacturer GlobalFoundries, for example, has partnerships with the Georgia Institute of Technology and Purdue University to collaborate on semiconductor research and education.But CEO Tom Caulfield said there's still a lot of work to be done." I think the industry is going to come under a lot of pressure. And so will we, as we try to double the amount of [manufacturing] capacity in the U.S. over the next decade. ,” he said.

 The chip space in the US is undergoing a rapid transformation, fueled by advances in technology and increasing demand for semiconductor chips in various industries. But along with this growth has come a significant challenge – a widening talent gap. With chipmakers investing billions in research and development, the need for skilled professionals has never been more critical. In this article, we explore the factors contributing to the growing talent gap in the US chip space and discuss strategies to address this challenge.

Understanding the talent gap

The semiconductor industry plays a vital role in powering modern electronics, from smartphones to self-driving cars. As the industry expands its reach, there is a significant demand for skilled individuals capable of designing, manufacturing and testing semiconductor chips. Unfortunately, the supply of such talent struggles to keep up with this demand, resulting in a talent gap.

Factors affecting the gap

Technological Complexity: The continuous development of chip technology has led to greater complexity in chip design and manufacturing. This requires professionals with deep knowledge of materials, processes and tools. A gap arises when educational programs cannot keep up with this rapid progress.

Lack of specialized education: While engineering and computer science programs exist, there is a lack of specialized courses focused on semiconductor technology. Graduates often lack specific skills needed by chipmakers. Competitive landscape: Tech giants like Intel, AMD, NVIDIA and Qualcomm invest billions in research and development and attract the best talent. Smaller companies and startups are fighting for qualified professionals.

Solving the challengeInvesting in education: To close the talent gap, educational institutions need to work closely with industry. Developing specialized semiconductor programs and courses that are aligned with industry requirements can equip students with the necessary skills.

Internship and Apprenticeship Programs: Partnerships between chip manufacturers and educational institutions for internships and apprenticeship programs can provide students with real-world experience that will make them job-ready after graduation.Retraining initiatives: Encouraging professionals from related fields to retrain and move into the semiconductor industry can help bridge the gap. This can be supported by targeted educational programs.

Diversity and Inclusion: Supporting diversity and inclusion initiatives can help tap into a wider pool of talent. Diverse perspectives can drive innovation and help fill the talent void.Industry-academia collaboration: Fostering collaboration between chip manufacturers and academia can lead to joint research projects that ensure education stays in line with industry trends.

As the U.S. chip space continues to expand, the talent shortage is a significant challenge that must be collectively addressed by industry stakeholders, educational institutions, and policymakers. By investing in specialized education, fostering collaboration and fostering diversity, the semiconductor industry can ensure a steady supply of skilled professionals, enabling it to maintain its position as a global technology leader for years to come. Through these strategic efforts, the industry can not only meet its current demand, but also drive future innovation in semiconductor technology.