The semiconductor industry is recruiting workers in a tight labor market as competition for talent increases and funding from the CHIPS and Science Act designed to spur domestic production continues to disperse.
It also faces a projected shortfall of up to one million workers in the broader U.S. economy by 2030, as generative artificial intelligence adds fuel to the in-demand sector.
The U.S. chip industry is expected to face a shortage of 67,000 technicians, computer scientists and engineers by 2030, while the U.S. economy as a whole will have a gap of 1.4 million such workers, according to a 2023 study by the Semiconductor Industry Association.
An independent study by Deloitte has concluded that the talent shortage in the semiconductor sector could worsen further due to the global economic environment and current supply chain issues.
A wafer sorter inside GlobalFoundries' semiconductor manufacturing facility in Malta, New York, on June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
Global Foundriesthe world’s third-largest chipmaker, is casting a wide net to recruit talent. The company has sought out veteran candidates, along with candidates from its own re-employment program and an initiative for women in construction.
The company creates chips for everyday products, from electronics and phones to cars, as well as components for space and defense. Its key customers include General Motors and Lockheed Martin.
In 2021, the company launched the industry’s first registered apprenticeship program, which is full-time and paid with benefits, with training at no cost to the apprentice. It takes two years or less to complete and requires only a high school diploma or equivalent and an interest in the mechanical field. About 50 apprentices have gone through the program so far, the company said. It has recruited graduates with associate’s degrees from regional community colleges and veterans exiting the military for the program.
Global Foundries The company is working to fill hundreds of positions at a time around the world and is hiring thousands of people a year, a pace it expects to continue, Chief People Officer Pradheepa Raman told CNBC in an interview. Raman said maintaining the same headcount size is “not an option” for the industry as demand increases. Needs range from technicians to product managers to corporate positions.
“That's why we're very, very aggressive when it comes to our workforce development efforts,” Raman said. “And if you're not getting traditional talent, [the solution is] “Our approach is to cross-train talent, identify alternative talent pools, people who are doing things in different fields, and show them that this is a very welcoming set of opportunities that exists within the semiconductor industry.”
GlobalFoundries' semiconductor manufacturing facility in Malta, New York, on June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
Workers also have room for improvement, and training and retention of existing workers is key in this competitive environment. Morgan Woods, 28, started in Malta, New York, at GlobalFoundries’ manufacturing facility as a technician in 2021. Woods has now moved into a training and development analyst role at the company, overseeing the training of technicians, engineers and managers, as well as ensuring regulatory compliance. Woods said regulatory compliance is crucial as the company expands into the automotive sector, working with GM.
“As demand for microchips increases, we definitely need more manpower to help support the ongoing deployment of microchips and meet our daily goals,” Woods said.
Woods has taken advantage of a GlobalFoundries benefit launched in May that allows eligible U.S.-based employees and new hires to receive a lifetime tax-free total of $28,500 to cover student debt. It includes qualifying loans for all types of degrees and credit-based certificate programs offered by U.S. colleges and universities. So far, the number of applicants has topped 200, exceeding expectations, the company said.
“By participating in this program, I will be in a much better financial position to purchase a home in the coming years, as well as consider expanding my family and having children,” Woods said.
In addition to helping create engineering and computer science jobs, CHIPS and Science Act funding will also fuel the growth of GlobalFoundries’ manufacturing plants in New York and Vermont. In February, the company announced planned $1.5 billion in CHIPS Act funding to expand manufacturing capacity. The funding, along with local and state money, is expected to help create about 1,500 manufacturing jobs and 9,000 construction jobs over the duration of the planned projects.
The manufacturing and construction sectors have recently faced their own shortage of workers and are looking to attract new, younger employees to the sector.
“We believe that the challenges we face in recruitment can be solved through an ecosystem approach to workforce development and making our organization one of the best places to work through the benefit offerings we have been providing,” Raman said.
