"Does the Semiconductor Industry Have a Perception Problem?" James Anderson, Business Development Manager, Actalent
Commentary: What James is saying here, referring to the US market, is true for Europe since the beginning of the century. See also our presentation during SEMICON EUROPE 2013 in Dresden, Germany, you may find the video on this website.
It’s 2025 and the U.S. is awash in semiconductor manufacturing investments, from TSMC’s landmark $100 billion, five-facility plan announced in March to GlobalWafers’ recent $4 billion capital infusion. As more global chip giants set their sights on American capabilities, U.S. semiconductor manufacturing capacity is poised to triple from 2022 to 2032.
But there’s a big problem: We don’t have enough engineers and technicians to do the work.
A 2024 report estimated that of the approximately 115,000 jobs the industry will add by 2030, 67,000 (or 58%) risk going unfilled. That’s because roughly 27,300 engineers and 26,400 technicians are currently “missing” in the U.S. workforce. A shortfall of this magnitude could seriously jeopardize the future of these investments—not to mention the security of U.S. chip manufacturing.
As more facilities go online, companies need to develop a healthy talent pipeline to keep pace. Here’s how.
Attract engineers with better benefits and branding
When it comes to hiring engineers, the semiconductor industry is frequently losing out to flashy Silicon Valley startups offering top-tier benefits and laid-back office cultures (the best perk I’ve heard of so far was a company that brings in a load of puppies for people to play with once a month to “relieve stress”—true story).
Even the executive director of the SEMI Foundation, a nonprofit that focuses on semiconductor workforce development within the leading global microelectronics industry association SEMI, has spoken about the industry’s awareness issue, noting that it’s “kind of invisible” among engineering students considering their career options. ASML, for example, has been dubbed “The Most Important Company You’ve Never Heard Of,” but more needs to be done to catapult the industry and its importance into the mainstream lexicon and to make people realize that the only way we will make any progress—in almost every field—will come down to the work that gets done in the semiconductor space.
Perception is, in many cases, reality, and without knowing why they should want to work for a semiconductor company, talent will flock elsewhere.
The good news? There’s a relatively straightforward solution: To improve recruiting, companies should be tying the hard engineering of semiconductors to exciting areas of innovation across a wide array of technologies, from AI to the latest sports cars, space travel, and the robotic revolution. The most advanced semiconductors are the backbone of the U.S. innovation economy; now, it’s time that budding engineers understand the foundational importance of this work.
However, just upping the “cool” factor alone won’t be sufficient. A 2024 study found that engineers believe the semiconductor industry offers lower pay, worse flexibility, and more limited learning opportunities than software companies.
Offering more competitive benefits packages should therefore be a top priority if semiconductor companies want to compete with startups that are flush with venture capital and offering employees generous equity opportunities. Beyond the numbers, more flexible schedules and remote work options, coupled with career advancement and skill-building opportunities, are key for attracting the best talent.
Train technicians with skills development programs
The manufacturing facilities popping up around the country also need to invest in local workforce development programs that can produce the skilled technicians necessary to keep foundries running.
Partnering with community trade schools, local governments, and/or workforce solutions companies to develop training programs can help bridge the talent gap. TSMC, for example, invested $5 million last year in developing unique semiconductor technician apprenticeship and intensive training programs in partnership with the U.S. Department of Commerce, the Arizona Commerce Authority, and the City of Phoenix. Participants receive on-the-job training as full-time TSMC employees while also taking weekly classroom courses, with the option to specialize as a facilities, equipment, or process technician.
The chip manufacturer knows the cost of failing to address the skills shortage. TSMC felt that they had to fly in a significant number of employees from Taiwan for just one Arizona plant for want of skilled local employees. The semiconductor talent gap was so severe that the company claimed it had to delay mass production from 2024 to 2025. However, after outcry from local labor leaders over the company’s decision to import Taiwanese talent, TSMC also announced a partnership with Arizona unions to develop workforce training programs.
Other industry giants are increasingly seeing the value in upskilling and training programs as well, especially as companies move toward valuing skills-based hiring over traditional educational degrees and credentials. For example, one Actalent team has partnered with a major global software organization to create a program that recruits, develops, and upskills talent for work in the tech industry. Since it launched a decade ago, the program has trained people from a wide range of backgrounds—a model that can work for the semiconductor sector, too.
Build talent for tomorrow
The semiconductor talent gap isn’t going away overnight. But if semiconductor companies want to build the skilled workforce they need to support their ambitions, it’s imperative they start making investments now. That means changing the industry’s reputation among engineers, bringing compensation packages in line with the software industry, and building comprehensive training programs that can create the technicians of tomorrow, today.
It’s 2025 and the U.S. is awash in semiconductor manufacturing investments, from TSMC’s landmark $100 billion, five-facility plan announced in March to GlobalWafers’ recent $4 billion capital infusion. As more global chip giants set their sights on American capabilities, U.S. semiconductor manufacturing capacity is poised to triple from 2022 to 2032.
But there’s a big problem: We don’t have enough engineers and technicians to do the work.
A 2024 report estimated that of the approximately 115,000 jobs the industry will add by 2030, 67,000 (or 58%) risk going unfilled. That’s because roughly 27,300 engineers and 26,400 technicians are currently “missing” in the U.S. workforce. A shortfall of this magnitude could seriously jeopardize the future of these investments—not to mention the security of U.S. chip manufacturing.
As more facilities go online, companies need to develop a healthy talent pipeline to keep pace. Here’s how.
Attract engineers with better benefits and branding
When it comes to hiring engineers, the semiconductor industry is frequently losing out to flashy Silicon Valley startups offering top-tier benefits and laid-back office cultures (the best perk I’ve heard of so far was a company that brings in a load of puppies for people to play with once a month to “relieve stress”—true story).
Even the executive director of the SEMI Foundation, a nonprofit that focuses on semiconductor workforce development within the leading global microelectronics industry association SEMI, has spoken about the industry’s awareness issue, noting that it’s “kind of invisible” among engineering students considering their career options. ASML, for example, has been dubbed “The Most Important Company You’ve Never Heard Of,” but more needs to be done to catapult the industry and its importance into the mainstream lexicon and to make people realize that the only way we will make any progress—in almost every field—will come down to the work that gets done in the semiconductor space.
Perception is, in many cases, reality, and without knowing why they should want to work for a semiconductor company, talent will flock elsewhere.
The good news? There’s a relatively straightforward solution: To improve recruiting, companies should be tying the hard engineering of semiconductors to exciting areas of innovation across a wide array of technologies, from AI to the latest sports cars, space travel, and the robotic revolution. The most advanced semiconductors are the backbone of the U.S. innovation economy; now, it’s time that budding engineers understand the foundational importance of this work.
However, just upping the “cool” factor alone won’t be sufficient. A 2024 study found that engineers believe the semiconductor industry offers lower pay, worse flexibility, and more limited learning opportunities than software companies.
Offering more competitive benefits packages should therefore be a top priority if semiconductor companies want to compete with startups that are flush with venture capital and offering employees generous equity opportunities. Beyond the numbers, more flexible schedules and remote work options, coupled with career advancement and skill-building opportunities, are key for attracting the best talent.
Train technicians with skills development programs
The manufacturing facilities popping up around the country also need to invest in local workforce development programs that can produce the skilled technicians necessary to keep foundries running.
Partnering with community trade schools, local governments, and/or workforce solutions companies to develop training programs can help bridge the talent gap. TSMC, for example, invested $5 million last year in developing unique semiconductor technician apprenticeship and intensive training programs in partnership with the U.S. Department of Commerce, the Arizona Commerce Authority, and the City of Phoenix. Participants receive on-the-job training as full-time TSMC employees while also taking weekly classroom courses, with the option to specialize as a facilities, equipment, or process technician.
The chip manufacturer knows the cost of failing to address the skills shortage. TSMC felt that they had to fly in a significant number of employees from Taiwan for just one Arizona plant for want of skilled local employees. The semiconductor talent gap was so severe that the company claimed it had to delay mass production from 2024 to 2025. However, after outcry from local labor leaders over the company’s decision to import Taiwanese talent, TSMC also announced a partnership with Arizona unions to develop workforce training programs.
Other industry giants are increasingly seeing the value in upskilling and training programs as well, especially as companies move toward valuing skills-based hiring over traditional educational degrees and credentials. For example, one Actalent team has partnered with a major global software organization to create a program that recruits, develops, and upskills talent for work in the tech industry. Since it launched a decade ago, the program has trained people from a wide range of backgrounds—a model that can work for the semiconductor sector, too.
Build talent for tomorrow
The semiconductor talent gap isn’t going away overnight. But if semiconductor companies want to build the skilled workforce they need to support their ambitions, it’s imperative they start making investments now. That means changing the industry’s reputation among engineers, bringing compensation packages in line with the software industry, and building comprehensive training programs that can create the technicians of tomorrow, today.