[Chip Talk] "50,000 New Hires Needed Only in the US"... Semiconductor Engineers Are Missing

President Joe Biden of the United States [Photo by AP]

[Asia Economy Reporter Jeong Hyunjin] Purdue University, a prestigious research-focused university located in West Lafayette, Indiana, recently welcomed dozens of unfamiliar visitors. These visitors carefully observed students immersed in experiments through the windows of laboratories and nodded with satisfaction. They were executives from major U.S. semiconductor companies, checking whether students were properly utilizing semiconductor equipment donated by their respective companies. Among them was a representative from Intel, the world's largest semiconductor company. Professor Zhihong Chen, the leader of the High-Tech Lab, stated, "We are focusing on expanding semiconductor education."

Earlier, in September, Gina Raimondo, the U.S. Secretary of Commerce who leads semiconductor policy in the U.S. administration, also visited the campus. Touring the laboratories where semiconductor education takes place, Secretary Raimondo emphasized, "My mission at the Department of Commerce is to enhance America's competitiveness globally," adding, "Increasing America's competitiveness starts right here in buildings like this."

The semiconductor hegemony war, intensified by the COVID-19 pandemic, has led to a global shortage of skilled technology workers. Based on the Chips and Science Act (CSA) and other measures, numerous semiconductor manufacturing facility investments have been announced in the U.S., but concerns are rising that there will be a severe shortage of engineers to operate these facilities.

◇ Is There a Labor Shortage at U.S. Semiconductor Factories?

On the 23rd (local time), The Washington Post (WP) reported on the shortage of semiconductor personnel in the U.S., citing industry estimates that 50,000 new semiconductor engineers will be needed over the next five years. This surge in demand is due to global semiconductor companies making large-scale investments and announcing plans to build manufacturing facilities in the U.S. this year.

Intel, building a new plant in Ohio, plans to hire 3,000 employees. Micron also announced an investment in New York earlier this month and expects to directly employ 3,000 workers when mass production begins in 2024. TSMC is expected to have over 2,000 employees in Arizona alone, and Samsung Electronics is projected to create 1,800 full-time jobs at its Taylor plant.

The problem is the shortage of semiconductor engineers within the U.S. As the semiconductor industry has grown over recent decades centered in Asia, including South Korea and Taiwan, the popularity of semiconductor engineering in the U.S. has waned. Meanwhile, the rise of big tech companies has drawn talent toward software departments, making it difficult for the semiconductor industry to mass-produce skilled personnel. Media reports have even noted that in Arizona, where Intel and TSMC both have factories, the two companies are competing to recruit scarce talent first.

Santoshi Kurinek, a professor at Rochester Institute of Technology (RIT), told the IT magazine Protocol in June, "There is a perception that physical electronic devices like TVs and displays are made outside the U.S.," and noted that the number of students in RIT's semiconductor engineering-related departments has significantly decreased over the past 30 years. Michael Kojiki, who has taught electrical engineering at Arizona State University (ASU) since the 1980s, said that for the first time in decades, advanced semiconductor-related classes are fully enrolled. He mentioned that a small summer course with only six students last year was fully booked with 20 students this year.

◇ Semiconductor Companies and U.S. Universities Form Partnerships

Reflecting this trend, global semiconductor companies in the U.S. are increasingly strengthening ties with universities. The U.S. government has separately allocated $200 million in the Chips and Science Act budget for worker education.

[Image source=Reuters Yonhap News]

Universities are focusing on training engineers by establishing semiconductor research centers and expanding related courses. Earlier this month, Purdue University invited senior executives from global semiconductor companies to tour the campus and introduce the engineer training process. Even Arizona's ASU held a special event on October 8th, ahead of Taiwan's National Day (Double Ten Day), to welcome the Taiwanese community and strengthen relations, considering TSMC's presence.

Intel and the U.S. National Science Foundation (NSF) formed a $10 million partnership last month to educate semiconductor manufacturing personnel in the U.S. The U.S. Semiconductor Academy Initiative (ASA) and the Semiconductor Equipment and Materials International (SEMI) also plan to establish a foundation for cooperation among over 200 universities and community colleges (two-year colleges) and about 1,500 semiconductor companies in the U.S.

Hudson Valley Community College (HVCC), part of the State University of New York system, has been in steady contact with GlobalFoundries since June, according to Protocol. Jensen Huang, CEO of fabless semiconductor company Nvidia, donated $50 million with his wife, an alumna, to his alma mater, the University of Oregon. The university announced plans to create a $200 million research and education center supporting the semiconductor and technology industries, including this donation. Syracuse University in New York announced on the 27th that it will establish a partnership program for workforce development, including an internship program with Micron.

◇ South Korea and Japan Also Face Semiconductor Labor Shortages

[Image source=EPA Yonhap News]

The focus on semiconductor workforce development is not limited to the U.S. It is a widespread phenomenon in countries competing for semiconductor dominance, including Japan, Europe, and China. TSMC, building a new plant in Kumamoto Prefecture, Japan, has partnered with Kumamoto University to establish a semiconductor department on campus by 2024 to secure talent. Students, about 60 per grade, will receive semiconductor education, and TSMC is likely to employ these graduates. Japanese semiconductor company Kioxia is also building a second production plant in Kitakami, Iwate Prefecture, and plans to conduct new hiring next year. However, securing talent is challenging, so the company plans to visit nearby schools and actively hold company information sessions.

In South Korea, companies are also focusing on securing talent by partnering with universities to establish semiconductor contract departments. Korea Advanced Institute of Science and Technology (KAIST) and Pohang University of Science and Technology (POSTECH) are working with leading domestic semiconductor companies such as Samsung Electronics and SK Hynix to train personnel who can join companies immediately after graduation. According to the Ministry of Education and the Korea Semiconductor Industry Association, the total workforce in the semiconductor industry was 176,509 as of last year. As the semiconductor industry expands over the next decade, the required workforce is expected to increase to about 304,000.