"An uphill battle": Why semiconductor manufacturing jobs will take years to fill | Salon.com

Job creation, particularly in the manufacturing sector, is a key focus in a tight presidential race that has seen both Donald Trump and Kamala Harris pitch various plans.

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

Its return stemmed from a significant microchip shortage during the COVID-19 pandemic that affected everything from cellphones and cars to satellites and generative AI. In response, President Joe Biden signed the CHIPS and Science Act in August 2022, allocating $52.7 billion to fund semiconductor manufacturing over five years. The goal is to revitalize the industry, create high-paying jobs and address growing competition from China.

Since the law was enacted, semiconductor giants like Intel, Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung have committed nearly $400 billion in investments and are projected to create 115,000 jobs nationwide by 2030, representing a 33% growth from the current 345,000 jobs, according to the Semiconductor Industry Association (SIA).

Related

But filling these positions remains a significant challenge two years after the law took effect.

"On the talent front, semiconductor players face an uphill battle. Already contending with considerable attrition and recruitment challenges, companies must compete with other industries for a shrinking population of skilled workers to build and operate their new US facilities," consulting firm McKinsey said in a report.

The Semiconductor Industry Association predicts that by 2030, 67,000 of the anticipated 115,000 new jobs could go unfilled at current degree completion rates. Of the unfilled jobs, 39% will be technicians, most of whom will have certificates or two-year degrees; 35% will be engineers with four-year degrees or computer scientists; and 26% will be engineers at the master's or doctoral levels, the association said.

Staffing shortages could put domestic objectives for the industry at risk, drive up labor costs and delay or diminish the return on this monumental investment, McKinsey said.

We need your help to stay independent

The shortage of skilled workers has already impacted Taiwan Semiconductor Manufacturing Co., the world's largest contract chip manufacturer, which produces the majority of the most advanced semiconductor chips for clients like Apple and Nvidia. As a result, TSMC has been forced to delay production at two of its Phoenix, Arizona, plants—pushing completion 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, followed by additional investments in two fabs that will bring its total Arizona investment to over $65 billion. These facilities are expected to create around 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 for its two Arizona fabs. A TSMC spokesperson did not disclose the company's latest staffing situation.

To address the talent gap, TSMC has launched several programs. For engineer roles, TSMC collaborates with state universities, including Arizona State University, in training centers, mentorships and engineer recruiting efforts. For technician positions, TSMC has partnered with Maricopa Community Colleges and the public school district West Maricopa Education Center to provide technical education programs, along with launching a Registered Technician Apprentice program, the spokesperson said.

Other major players in the semiconductor industry, such as Intel, GlobalFoundries and Samsung, have forged partnerships with academic institutions. Moreover, various government-supported initiatives and programs are sprouting across the country to help meet workforce demands.

However, some argue that more needs to be done. A report by the Institute for Policy Studies highlighted issues such as low pay, lack of career advancement, long hours and unsafe working conditions as factors that may deter people from staying in the industry.

Low pay, lack of career advancement, long hours and unsafe working conditions may deter people from staying in the industry.

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

The Institute for Policy Studies has called for the CHIPS Act to ensure that public investments lead to actual good jobs, urging the Department of Commerce to require CHIP grantees to offer equal employment opportunity, minimum living wages and benefits, safe working conditions, opportunities for career growth and the right to organize.

"Taking all possible steps to ensure that jobs created by the CHIPS Act are well-paid and safe is not only important for protecting workers but for the success of the whole program," the report concluded.

Read more

about personal finance