US Semiconductor Industry: "Even with Money, No Work Without People"… Emphasizing the Need for Talent

"Possible Shortage of 100,000 People Over the Next Several Years"

The Biden administration in the United States has officially begun reviewing subsidies to strengthen the semiconductor supply chain, and the U.S. semiconductor industry has emphasized the need to cultivate talent in line with investment efforts.

According to Bloomberg and other sources on the 18th (local time), at a semiconductor industry event hosted by Purdue University and held in Washington DC on the same day, more than 100 executives from major U.S. semiconductor companies such as Secretary of Commerce Gina Raimondo, Micron, Intel, and Applied Materials gathered to share these views.

U.S. President Joe Biden is delivering a speech at the groundbreaking ceremony of Intel's semiconductor factory held in Albany, Ohio, last September.
[Image source=Reuters Yonhap News]

Secretary Raimondo stressed that private companies and leading universities must form strong partnerships to enhance semiconductor production capabilities. She said, "We need to be much more serious about this. And we need to develop new pipelines," adding, "If we do not take action, it is projected that there will be a shortage of about 100,000 semiconductor technicians within the next few years. That is a big problem but also an opportunity."

Thomas Sonderman, CEO of SkyWater Technology, who attended the event, said, "Honestly, the biggest concern we have is workforce development," and added, "If there are no people excited to join this business as we were when we started, it will not succeed."

Manish Bhatia, Senior Vice President of Micron, also mentioned that the biggest challenge in mass-producing memory semiconductors in North America is achieving price competitiveness. To be competitive in the price-sensitive memory semiconductor market, labor costs must be lowered, and a key factor is securing the necessary workforce, from factory construction workers to equipment operation personnel.

Ajit Manocha, Chairman of the Semiconductor Equipment and Materials International (SEMI), said that while some estimates have suggested that 300,000 workers will be needed in the semiconductor industry by 2030, these estimates are underestimated. He stated that 500,000 to 600,000 workers are needed for the U.S. to succeed in the semiconductor industry. He said, "Even if there is money, without people, work cannot be done."

Manocha also emphasized the need for immigration policies to attract foreign engineers to the U.S. to address the workforce shortage issue.

In fact, although many semiconductor factory investments have been secured in the U.S., it is often difficult to find workers to immediately build the factories, causing challenging situations.

Arizona, where U.S. Intel and Taiwan's TSMC are building new factories, is a representative example. TSMC mentioned during its earnings announcement in January that construction costs in Arizona increased more than expected, citing labor costs as one of the reasons. Both TSMC and Intel are also strengthening relationships with local universities in Arizona to secure top talent.

The calls to resolve the semiconductor workforce issue in the U.S. have come as the Biden administration has officially started the subsidy payment process for semiconductor manufacturing facilities.

Earlier, the Semiconductor Program Office under the U.S. Department of Commerce announced on the previous day that more than 200 companies had submitted letters of intent to receive subsidies under the CHIPS Act by the 14th. The Department of Commerce said that after analyzing the letters of intent, the projects proposed by companies were distributed across 35 states and covered the entire semiconductor ecosystem.

More than half of the letters of intent expressed interest in investing in commercial semiconductor manufacturing facilities, including cutting-edge and previous-generation technology semiconductors and packaging. The rest were related to semiconductor materials and equipment production and research and development facilities. The Department of Commerce emphasized, "We will evaluate applications based on whether the projects promote the U.S. economy and national security."

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