Following TSMC... Kioxia, Expanding in Japan, Also Faces Workforce Recruitment Challenges

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As global semiconductor companies ramp up production facility expansions, competition for talent acquisition is intensifying. While Taiwan's TSMC faces challenges in securing personnel in Arizona, USA, and Kumamoto Prefecture, Japan, where it plans to build semiconductor factories, memory semiconductor company Kioxia is also expected to face fierce competition for talent in Iwate Prefecture, where it is constructing a factory.

According to Japan's Nihon Keizai Shimbun on the 4th, Kioxia Iwate President Koichiro Shibayama stated in an interview with the media on the 30th that construction of a second production plant near the existing NAND flash factory in Kitakami, Iwate Prefecture, began earlier this year. The plant is scheduled for completion next year and will be a seven-story building, two floors higher than the existing factory, including lines utilizing the latest systems such as artificial intelligence (AI), he added.

For the new second production plant, Kioxia plans to hire 245 new employees next year. President Shibayama said, "We expect to secure university graduates, but recruiting high school graduates may not be simple even if we focus hiring activities in Iwate Prefecture," forecasting that talent acquisition will not be easy. He emphasized, "We will first visit schools and frequently hold company briefings to appeal the growth potential of flash memory and the attractiveness of our company."

He also said, "We plan to carry out activities to raise (company) awareness. In addition to sponsoring programming contests for elementary school students in the prefecture, we will soon resume social field trips for elementary and junior high schools, which were suspended due to COVID-19," adding, "We also plan to start reviewing cooperation with administrative agencies." Nihon Keizai reported, "With expansions of automobile and semiconductor-related factories continuing in the surrounding area, competition for securing personnel is expected to intensify in the future."

Regarding forecasts that some oversupply may occur in 2024 due to aggressive investments in the semiconductor industry, he said, "The situation for semiconductors essential to the automotive industry and the flash memory we handle is different, and market conditions vary depending on the type of semiconductor. We have received many orders and can respond accordingly." However, he expressed concern about potential disruptions related to raw materials due to the prolonged Ukraine war.

Kioxia is a leading NAND flash memory manufacturer. According to market research firm TrendForce, Kioxia's market share in the first quarter of this year was 18.9%, ranking second after Samsung Electronics (35.3%). Last year, foreign media reported discussions about a merger with Western Digital, the industry's fourth-largest company from the United States (12.5%).