[Semiconductor Talent 'Each Country for Itself'] ① No Sign of International Cooperation in 'Talent Collaboration'

Analysis of 15 Semiconductor Agreements Over the Past 3 Years
No Specific Practical Provisions for Personnel Exchange Except US-Vietnam Agreement
Korea Needs 15,000 Workers Annually but Only Fills 5,000, Severe Labor Shortage
Talent Scarcity Persists Despite Shift to Unmanned Factories... Strengthening R&D

South Korea, the United States, Taiwan, Japan, and the Netherlands are collectively known as the 'Chip 5.' As supply chains involving China containment and materials, components, and equipment become increasingly important, these countries that share value are forming a 'league of their own.' However, there is one aspect these countries never share: people. In reality, they lock the doors when it comes to jointly nurturing talent.

The core of the semiconductor industry lies in design and equipment, but since the know-how ultimately comes from people, protective barriers are erected. Especially as technologies advance?such as AI semiconductors and foundry processes below 3 nanometers (nm; 1 nm is one-billionth of a meter)?highly skilled personnel are increasingly necessary. This is why semiconductor companies, which ultimately aim for 'unmanned factories,' still thirst for talent.

On the 20th of last month, researchers from the Spin Convergence Research Group, which plays a driving role in the growth of the semiconductor industry, posed with an 8-inch semiconductor wafer produced through collaborative research with the Nano National Fusion Center (NNFC) at the Korea Institute of Science and Technology (KIST) in Seongbuk-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Invisible in International Agreements: 'Talent Cooperation'

The era of 'each country fending for itself' in semiconductor talent development is solidifying. According to the semiconductor industry on the 22nd, the German Berlin-based technology policy think tank Stiftung Neue Verantwortung (SNV) pointed out in its report titled 'Chip Diplomacy: An Analysis of Technology Partnerships,' released at the end of last year, that among 15 bilateral and multilateral partnerships formed by semiconductor-holding countries over the past three years, only one?the US-Vietnam agreement signed in September last year?explicitly included concrete plans for personnel exchange cooperation.

This analysis covered agreements among countries possessing semiconductor manufacturing, testing, and packaging facilities, including South Korea, the United States, the European Union (EU), Japan, Taiwan, India, Malaysia, Singapore, the Netherlands, and Vietnam.

The US-Vietnam agreement launched a $2 million (approximately 2.6 billion KRW) 'Semiconductor Workforce Development Initiative' to jointly develop manufacturing, testing, and packaging practice laboratories and educational curricula. The fact that the specific amount was stated indicates a strong willingness to cooperate.

Other agreements either lacked any mention of talent cooperation or contained only abstract expressions. The US-India 'Initiative on Critical and Emerging Technologies (iCET)' stated that "both countries will strive to promote the development of skilled talent," and the US-Japan Commercial and Industrial Partnership (JUCIP) specified only that "relevant departments have an obligation to cooperate in talent development."

The report evaluated that "the shortage of skilled personnel is one of the key challenges facing the global semiconductor industry," but "most countries avoid cooperation and instead devise their own implementation strategies."

South Korea is no exception. In December, President Yoon Suk-yeol visited the Dutch EUV (extreme ultraviolet) lithography equipment company ASML and signed an MOU to select Korean master's and doctoral-level engineers to participate in advanced process technology lectures at Eindhoven University of Technology.

However, since the visit lasted only a week, it was criticized as a superficial 'short-term tour.'

"Even Aiming for Unmanned Factories, Talent Is Needed"

The pronounced 'each country fending for itself' phenomenon is closely related to the semiconductor industry becoming a core sector directly linked to national economy and security. Given that people determine the competitiveness of the semiconductor industry, jointly nurturing talent carries risks.

The German SNV report stated, "It is understandable that governments prioritize developing their domestic workforce," and a senior government official said, "Closed semiconductor talent development at the national level has become an inevitable reality."

Demand for semiconductor talent will increase regardless of production. Consulting firm Deloitte said in a report released last year that "the end of semiconductor supply shortages does not mean the end of workforce shortages." Research and development (R&D) is especially critical. This explains why global semiconductor companies like Samsung Electronics continue to thirst for talent even as they pursue automation of manufacturing processes.

Semiconductor companies' R&D investments are increasing regardless of market conditions. In the first half of last year, R&D investment amounted to 2.0863 trillion KRW, accounting for 16.8% of sales?double the 9.3% in the same period the previous year. An industry insider said, "Both Samsung Electronics and SK Hynix are putting their lives on securing R&D engineers."

Deloitte forecasted that "having a workforce commensurate with semiconductor growth is necessary to gain definite momentum," projecting that the global semiconductor industry's direct workforce demand will increase from 2 million in 2021 to 3 million by 2030. Analysis suggests that the US semiconductor industry will still face a shortage of about 67,000 workers in 2030. Especially as AI becomes the dominant trend in the industry, the importance of semiconductor talent grows. As advanced semiconductors with 'smaller and more sophisticated capabilities' attract attention, R&D related to manufacturing, testing, and packaging has become crucial.

South Korea faces a similar shortage. According to the '2022 Industrial Technology Workforce Supply and Demand Survey' released last month by the Ministry of Trade, Industry and Energy, South Korea needs to recruit 10,000 to 15,000 workers annually but actually secures fewer than 5,000.

Companies are devising countermeasures to the long-term workforce shortage while struggling to secure talent.

A government official said, "I understand that Samsung Electronics and SK Hynix aim for complete factory automation in the mid to long term," but added, "Talent remains a very important part of the industry." As the 'each country fending for itself' phenomenon intensifies, there are calls to review the entire process from semiconductor talent development to management.

On the afternoon of the 15th, the site of the Yongin Semiconductor Cluster under construction in Wonsam-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do. Equipment is arriving, but there is a shortage of manpower.
[Photo by Yonhap News]