The US government is accelerating the development of domestic chip production, while Samsung, TSMC, and other major chip manufacturers are expanding production in the US, leading to a talent shortage challenge in the semiconductor industry.
A recent report from McKinsey and the SEMI Foundation shows that by 2030, the US semiconductor industry may face a shortage of up to 157,000 workers.
Jon Taylor, Vice President of Semiconductor Division at Samsung’s facility in Austin, Texas, expressed to CNBC that their biggest concern currently is that talent development cannot keep pace.
According to McKinsey data, only 3% of engineering graduates in the US enter the semiconductor industry each year. At the same time, 73% of chip companies find it difficult to recruit engineering talent.
Engineers and skilled technicians play vital roles in chip manufacturing. With the increasing demand for AI memory chips and logic processors, the US chip manufacturing industry is rapidly expanding. TSMC and Intel have already begun production of advanced logic chips at new chip factories in Arizona.
Samsung is investing nearly $35 billion to build two chip plants in Texas, with the first one planned to start later this year. The two chip plants are estimated to create nearly 3,500 job opportunities.
While the US is the birthplace of semiconductors and leads globally in chip design, most advanced chips have been manufactured in Asia over the past few decades, leading to a more complete semiconductor talent cultivation system in Asia.
Intense talent competition has prompted US chip companies to start recruiting from Asia. Simultaneously, US universities are expanding their semiconductor education programs. Universities like Purdue and Arizona State are investing in adding chip-related majors and training programs.
Michael Crow, President of Arizona State University, stated that the university is currently one of the top schools globally from which Intel recruits graduate students and aims to become a talent source for TSMC as well.
However, the salaries in the US semiconductor industry are lower compared to those in South Korea. According to SEMI Foundation data, average salaries in related positions in the US semiconductor industry range from $127,000 to $187,000, while senior positions exceed $238,000.
Some positions in the South Korean chip industry involve 12-hour shifts. Employees at companies like Micron, Samsung, and SK Hynix have threatened strikes over bonus issues, with some employees receiving bonuses of over $500,000, which are highly sought after in the South Korean marriage market.
Crow mentioned that as employee skills improve and companies continue to expand production, higher salaries are needed to attract talent.
Currently, there is a significant need for manpower in memory chip manufacturing. Global memory chip supply is tight, with companies like Nvidia, AMD, etc., striving to increase supply. However, most advanced memory chips are currently produced in Asia.
To meet the surging demand for memory chips, Micron and SK Hynix have invested in building factories in the US, intensifying talent competition in America. When starting new factories in the US, Samsung and SK Hynix have indicated they will temporarily assign employees from Korea or send American employees to Korea for several months of hands-on training.
European chip equipment manufacturer ASML recently established a training center in the US to cultivate chip engineering talent in America.
The concentration of semiconductor talent in the US is inadequate. The high cost and complexity of bringing in technical personnel via H-1B visas from overseas has led chip companies to pivot towards establishing a comprehensive talent cultivation system in the US.
Some universities in Taiwan and South Korea have dedicated semiconductor graduate schools or departments. US colleges are also increasing practical training programs. For instance, Purdue University launched a semiconductor major in 2022, while Arizona State University transformed an old Motorola chip factory into a clean room, receiving a $200 million fund from the chip equipment manufacturer Applied Materials.
TSMC has also established a technician training program at the university, where students who complete the course can have interview opportunities. TSMC visited approximately 12 US universities last year and plans to recruit senior staff from hundreds of interns to fill around 6,000 positions at the top three chip factories in Arizona.
In 2024, Intel initiated a manufacturing technician apprentice program in Arizona and promised to provide $50 million in scholarships to over 80 schools near their chip factory in Ohio. The company also launched a semiconductor education program starting from primary and secondary schools in 2025.
Samsung has been advancing talent development programs since 2023, donating millions to the University of Texas, Texas A&M University, and the University of Illinois to support chip engineering projects. Last year, they donated $1 million to help Taylor High School establish a technical lab, taking in over 100 interns annually.
The US federal government is also providing strong support. Since the enactment of the Chip and Science Act in 2022, over 80 community colleges have initiated or expanded semiconductor-related programs, some of which are funded by a $200 million semiconductor talent development fund provided by the federal government.