No Workers for Semiconductor Materials and Components...SMEs on the Brink of Collapse [Tech War, Birth of Advanced Nations]

Semiconductor Workforce Shortage Rate... Over 90% in Small and Medium Enterprises
Despite R&D Support, Semiconductor Materials and Components Companies Face Workforce Shortages Affecting Technology Development
Core Researchers in Their 20s and 30s Flowing to Large Corporations and Overseas
SME Industry Says "Can't Even Retain Existing Staff, Talking About Talent Development Years Later Is Unrealistic"
Need to Expand Employment Subsidies to Encourage Long-Term Retention of Key Personnel

[Asia Economy Reporter Kwak Min-jae] Semiconductor parts company A, located in Hwaseong-si, Gyeonggi-do, is a solid company listed on the KOSDAQ with sales of around 60 billion KRW. It was recognized for its technological prowess by being the first in Korea to domestically produce high-purity semiconductor steel pipes, previously monopolized by the U.S. and Japan. The company produces everything from large-diameter steel pipes to fittings that create bends according to terrain, valves that block gas, regulators that control pressure, and filters that increase purity, earning it the nickname "capillaries of the semiconductor fab industry."

After fierce competition, the company was recognized for its technology and selected as an ‘Outstanding Materials, Parts, and Equipment (SoBuJang) Company’ by the Ministry of Trade, Industry and Energy, receiving about 12 billion KRW in support over four years. However, the workforce to carry out this plan is only about half of what is needed, putting the technology development plan at risk. A company official said, "Last year, about six core researchers in their 20s and 30s moved to large semiconductor companies and mid-sized firms," adding, "Internally, we differentiate wages for R&D personnel by 10-20% and provide incentives for government project execution, but even after posting job openings, no resumes have come in for months, which is worrying."

If the manpower shortage at large semiconductor companies is at a ‘drought’ level, small and medium-sized enterprises (SMEs) are on the verge of ‘starvation’ (dying of hunger). Core personnel with skills and experience often move to large companies or overseas. Even when companies secure government research and development (R&D) budgets, many face setbacks in development due to a lack of personnel to carry out the work.

The manpower shortage in semiconductor SoBuJang companies is clearly reflected in statistics. Among domestic semiconductor-related companies experiencing manpower shortages, 90% are SMEs by size. Of the total semiconductor manpower shortage (1,621 people), small to medium-sized companies (10?299 employees) account for an overwhelming 1,463. This figure is from two years ago, analyzed by the Korea Institute for Advancement of Technology. Considering the active investments made since then, industry insiders expect the shortage to have increased. In this situation, even if the government continuously supports R&D budgets, it is difficult for companies to accumulate growth potential.

Semiconductor equipment company B in Yongin-si, Gyeonggi-do outsourced a significant amount of work due to manpower shortages. This company, which has excellent technology in semiconductor monitoring sensors, recently increased the performance bonus range to 40% of annual salary and searched for personnel through headhunters but ultimately failed to hire the desired candidates. The company president said, "As the technological level of semiconductor SMEs has risen, high-level personnel are needed, but it is so difficult to find manpower that we decided to outsource through external experts or industry-academia cooperation," adding, "We take pride in our technology representing the nation and work hard, but with a high outsourcing ratio, sometimes the cost of outsourcing exceeds the core expenses."

While the president continuously emphasizes the importance of the semiconductor industry and the government is accelerating efforts to nurture related talent, this is still an empty promise for SMEs. They cannot even retain their existing core personnel, so the prospect of expanding trained specialists in a few years does not resonate with them.

No Min-seon, a research fellow at the Small and Medium Business Research Institute, said, "Despite the semiconductor industry’s promise, SMEs face difficulties in maintaining and securing excellent personnel due to various reasons such as working conditions and environments," advising, "It is necessary to induce long-term retention of core semiconductor personnel through institutional improvements, such as temporarily expanding employment subsidies so that SMEs, which have less capacity to pay compared to large companies, can secure talented personnel."

This content was produced with the assistance of AI translation services.