In Depth: Chasing Chip Talent to Keep the Boom Alive

[para. 1] The global semiconductor industry's market value is projected to reach $1 trillion by 2030 due to the rise of generative AI, effectively doubling its current size. This rapid growth rate will necessitate improvements in production capacity and the acquisition of skilled talent. Watanabe Kiyoshi, from the Semiconductor Equipment Association of Japan, highlights that even though the number of factories is adequate, there is a dire shortage of skilled professionals.

[para. 4] Geopolitical tensions have underscored the importance of self-sufficiency in the semiconductor industry, intensifying competition for talent worldwide. For instance, the U.S. CHIPS and Science Act of 2022 has spurred significant investments by major chipmakers like TSMC and Intel to build new factories, intensifying the demand for skilled workers.

[para. 6] The Semiconductor Industry Association anticipates that by 2030, the U.S. chip industry will create 115,000 jobs. However, U.S. universities might fail to meet this demand, leaving potentially 67,000 positions unfilled, unless intervention occurs.

[para. 7] In China, the semiconductor sector faces its own talent shortage, evidenced by a substantial gap between the demand and supply of professionals reported by Arm China and Beyond Consulting. The country struggles to fill around 35,000 positions in the integrated circuit sector alone.

[para. 8] Nations like Malaysia are also vying to establish themselves as semiconductor hubs but face challenges. Malaysia's sector requires about ten times the number of engineers it currently produces, attracting foreign talent has become crucial.

[para. 9] Educational collaboration has gained prominence as a strategy to meet industry requirements. The CHIPS Act in the U.S., for instance, allocates $13.2 billion towards technology research and workforce training, encouraging partnerships between companies and universities.

[para. 11] The competition for semiconductor talent is fierce as markets like China shift focus to Malaysia, especially due to U.S. trade tensions. This has resulted in an increased demand for professionals in specific fields like physical and front-end chip design.

[para. 13] Despite Chinese companies offering higher salaries than U.S. firms, cultural factors often keep local professionals loyal to American companies. Recruitment challenges in Malaysia persist, exacerbated by high turnover rates, and are similar across Southeast Asia.

[para. 14] In response, some companies focus on enhancing their brand appeal and offering development opportunities to retain talent, while partnerships with universities aim at strengthening the talent pipeline by targeting first-year students for training and scholarships.

[para. 18] China has made strides in developing its semiconductor talent pool, spurred by geopolitical pressures and the COVID-19 pandemic, but still faces a shortage of high-level strategic talent and expertise despite its efforts of opening numerous university programs focused on integrated circuit science.

[para. 23] There is still a structural talent shortage within the Chinese semiconductor sector, particularly affecting mid-to-senior-level roles. The supply of top-tier, experienced engineers remains limited. It takes over a decade to develop technical expertise in the semiconductor field, and this long process often discourages potential talent.