Shortage of Skilled Workforce Hinders Semiconductor Manufacturing in the U.S.

A push to bring back semiconductor manufacturing to the United States has led to significant investments. However, concerns about the availability of a skilled workforce have arisen.

President Joe Biden signed the CHIPS and Science Act into law a year ago, prompting semiconductor companies in the U.S. to commit $231 billion towards establishing chip manufacturing hubs within the country. Now, as construction begins, companies are discovering the challenges of finding qualified talent.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, faced difficulties in starting production at its $40 billion Arizona plant due to a shortage of workers in the U.S.

“We’re still searching for more skilled tradespeople across various roles,” said TSMC Arizona President Brian Harrison. “We are installing our unique and highly advanced equipment, which is specific to the United States.”

TSMC is bringing in workers from Taiwan to handle the sophisticated equipment and train American workers.

“U.S. workers simply lack experience with these specific tools and techniques,” Harrison explained.

Overseas Dependence and Job Shortages in the Semiconductor Industry

The majority of the semiconductor supply chain is based overseas, resulting in fewer qualified workers available to staff facilities in the U.S.

According to a study by Oxford Economics and the Semiconductor Industry Association, the U.S. chip industry is projected to create nearly 115,000 jobs by 2030. However, the study warns that 67,000 of these positions for technicians, computer scientists, and engineers may remain vacant due to the lack of educational training programs and insufficient school funding.

Intel CEO Pat Gelsinger acknowledged the need for a better-skilled workforce in the industry but also attributed some challenges to TSMC’s inexperience in operating on a global scale.

“I think they lack experience in global operations. Samsung, being a global company, hasn’t faced the same issues while establishing their presence in the U.S.,” Gelsinger commented.

“Nevertheless, we recognize the need to improve skilled labor, both in construction and for our fabrication facilities,” he added.

Efforts to Address Workforce Challenges and Develop Talent Pipeline

Since the enactment of the CHIPS Act, more than 50 community colleges have announced new or expanded semiconductor workforce programs.

According to student job posting website Handshake, applications from students for full-time jobs offered by semiconductor companies increased by 79% in the 2022-2023 academic year, compared to a 19% increase in other industries. Many chip firms are also investing in collaborations with local middle schools, high schools, community colleges, and universities to build their own talent pipeline.

For instance, semiconductor manufacturer GlobalFoundries has established partnerships with the Georgia Institute of Technology and Purdue University to facilitate semiconductor research and education.

However, CEO Tom Caulfield emphasized that there is still more work to be done.

“The industry will face significant pressure, and as a result, so will we, as we aim to double our manufacturing capacity in the U.S. over the next decade,” Caulfield stated.