‘An uphill battle’: Why semiconductor manufacturing jobs take years to fill

Job creation, especially in manufacturing, has been a key focus of a closely contested presidential election in which Donald Trump and Kamala Harris have floated a variety of plans.

Of the many manufacturing jobs the United States lost to countries with lower production costs over the decades, semiconductor manufacturing is making a strong comeback.

Its resurgence stems from the massive microchip shortage during the COVID-19 pandemic, which has affected everything from cell phones and cars to satellites and generative AI. In response, President Joe Biden signed the CHIPS and Science Act in August 2022, providing $52.7 billion over five years to fund semiconductor manufacturing. The goal is to revitalize the industry, create good-paying jobs and combat growing competition from China.

Since the law was enacted, semiconductor giants such as Intel, Taiwan Semiconductor Manufacturing (TSMC), and Samsung have invested nearly $400 billion and created 115,000 jobs nationwide by 2030. This is a 33% increase from the current 345,000 jobs. According to the Semiconductor Industry Association (SIA).

But two years after the law went into effect, filling these positions remains a major challenge.

“On the talent front, semiconductor companies face an uphill battle,” consulting firm McKinsey & Co. said in a statement. “Semiconductor companies face an uphill battle on the talent front. Already facing significant layoffs and recruitment challenges, companies are struggling to build and operate new U.S. facilities. “We must compete with other industries for a shrinking population of skilled workers.” Report.

The Semiconductor Industry Association predicts that at current degree completion rates, 67,000 of the 115,000 new jobs expected by 2030 could be filled. Of the open positions, 39% are technicians, most of whom have a certificate or two-year degree. 35% will be engineers or computer scientists with a four-year degree. and 26% will become master’s or doctoral level engineers, the association said.

McKinsey said the talent shortage could jeopardize the industry’s domestic goals, raise labor costs and delay or reduce the return on this huge investment.

The shortage of skilled workers is already impacting Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, which produces most of the most advanced semiconductor chips for customers such as Apple and Nvidia. As a result, TSMC was forced to postpone production at two factories in Phoenix, Arizona, with completion pushed back from 2024 to 2025 and from 2026 to 2028, respectively.

TSMC first announced plans to build a chip production facility, known as a “fab,” in Phoenix in May 2020, and has since invested in two additional fabs, bringing its total investment in Arizona to more than $65 billion. Become. These facilities are expected to create approximately 6,000 jobs, more than 20,000 construction jobs, and tens of thousands of indirect supplier jobs. As of February, TSMC had filled more than half of the 4,500 positions needed at its two Arizona factories. A TSMC spokesperson did not disclose the company’s latest staffing status.

To address the talent shortage, TSMC has launched several programs. For engineering roles, TSMC works with state universities, including Arizona State University, to provide training centers, mentorship, and engineer recruitment. For technician jobs, TSMC has partnered with Maricopa Community College and the public school district’s West Maricopa Education Center to offer technical education programs, as well as launching a registered technician apprenticeship program, a spokesperson said. .

Other major players in the semiconductor industry, such as Intel, GlobalFoundries, and Samsung, also have partnerships with academic institutions. Additionally, various government-supported initiatives and programs have been launched across the country to meet workforce demands.

But some argue more needs to be done. The Institute for Policy Studies report highlights issues such as low wages, lack of career advancement, long working hours and dangerous working conditions as factors that prevent people from staying in the industry.

According to job search and community site Glassdoor, salaries for semiconductor engineers range from $50,000 to $74,000, and annual salaries for engineers range from $131,000 to $215,000. However, workers often face 10- to 12-hour shifts, night shifts, and weekend on-call rotations.

The Institute for Policy Studies calls on the Department of Commerce to enact the CHIPS Act to ensure that public investments actually lead to good jobs, and to require the Department of Commerce to provide CHIP grant recipients with equal employment opportunities, a minimum living wage and benefits. , safe working conditions, and career opportunities. Growth and the right to organize.

“Taking every step to ensure that the jobs created by the CHIPS Act are well-paid and safe is critical not only to protecting workers but also to the success of the program as a whole,” the report said. The book concludes.