Chasing chip talent to keep the semiconductor boom alive
- The global semiconductor industry is projected to grow to $1 trillion by 2030, driven by the increasing demand for AI technologies
- A severe global shortage of skilled engineers and technicians poses a significant challenge to meeting the industry’s growing needs
- Governments in countries like the U.S., China, and Malaysia are launching initiatives, including education programs and incentives, to address the talent gap
- Competition for semiconductor talent is intensifying globally, with issues like brain drain, high workloads, and lower pay making recruitment difficult
- While regions like the U.S., China, and Europe have distinct strengths in the semiconductor supply chain, creating a sustainable talent pipeline is a long-term challenge
The global semiconductor industry is projected to attain a market value of $1 trillion by 2030, with the emergence of generative AI as the major driver. This rapid growth, projected at 16% in 2024 and 12% in 2025, is creating an urgent need for increased production capacity and skilled workers. While factory expansion is keeping pace with demand, a major challenge is the shortage of qualified talent.
Countries view semiconductor self-sufficiency as vital for national strength, intensifying the competition for skilled workers. In the U.S., the 2022 CHIPS Act has spurred new factory construction, but a predicted 67,000 chip-related jobs could go unfilled by 2030 without interventions. Similarly, China is facing a severe shortage of professionals, with supply falling behind by more than 30,000 in 2022. Other countries like Malaysia, Saudi Arabia, and Brazil are also finding it very difficult to attract enough talent to develop semiconductor hubs.
This will include joint partnerships and efforts by companies and universities in providing appropriate training-as happens in the U.S. and Malaysia. The Malaysian government, among others, has committed huge investments into education and work skills development, including training 60,000 semiconductor engineers and a National Semiconductor Strategy, which sets aside RM25 billion to develop the industry.
Despite these efforts, the semiconductor industry faces competition for talent from other industries, such as software and finance. Heavy workloads, relatively low salaries, and geopolitical risks also discourage youngsters. Brain drain is another issue the country faces, as skilled workers in Malaysia are lured to better-paying jobs elsewhere, such as in Singapore.
Every region around the world has its own specific strengths in semiconductor skills, but developing a strong and self-sustaining talent pipeline takes time, requiring government-university-company collaboration to close the skill gaps and retain talent.
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