Help Wanted: A Look At The Semiconductor Industry's Job Market
By John Oncea, Editor
The semiconductor industry is growing, and expectations are hundreds of thousands of workers will be needed. Where will they come from?
My daughter is pretty bright. So, it always surprised me that she struggled with word problems in middle school. You know, stuff like:
Aaron’s candy container is 20 centimeters tall, 10 centimeters long, and 10 centimeters wide. Bruce’s container is 25 centimeters tall, 9 centimeters long, and 9 centimeters wide. Find the volume of each container. Based on volume, whose container can hold more candy? *
It wasn’t the math that got her, it was pulling the mathematical concepts from the text. We spent many a night calmly discussing these problems and how to solve them. **
“What does this have to do with semiconductors,” you may be wondering. Well, here’s a semiconductor-related word problem for you:
The semiconductor industry is anticipated to decline 3.6% to $596 billion in 2023 due to deteriorating economic conditions and waning consumer demand. Analysis based on a range of macroeconomic assumptions suggests the industry’s aggregate annual growth could average from 6% to 8% growth a year between now and 2030. Assuming average price increases of about 2% a year and a return to balanced supply and demand after current volatility, what will the semiconductor industry be worth in 2030?
Answer: $1 trillion. That’s a 1 followed by 12 zeros: $1,000,000,000,000. That’s a lot of zeros.
McKinsey & Company, the source of the information for the above word problem, wraps up its analysis by writing, “Certainly, the outlook for the semiconductor industry looks bright, notwithstanding potential short-term volatility due to supply/demand mismatches, as well as a changing global economic and geopolitical outlook. With growth set to continue in the longer term, the task for industry leaders will be to focus strategically on R&D, factories, and sourcing, and to apply the lessons of the modeling to unlock areas of opportunity.”
“This suggests,” writes TruPath, “that semiconductors will not be immune from economic repercussions moving forward. But what does it mean for employment? Despite the macroeconomic challenges associated with 2023 (and beyond), job growth is expected to remain robust as companies look to invest in new technologies and innovative products.”
Citing a KPMG study, TruPath concludes the growth of the semiconductor industry will make for a competitive job market as companies look to capitalize on new and emerging technologies. “To stay ahead,” advises TruPath, “recruiters should strive to understand their client’s requirements by having conversations with senior management and engineering teams. This will enable them to build a better understanding of what type of talent is needed for each role and ensure that they are sourcing candidates who are the best fit for their roles.”
* The volume is 2,000 cm³ of Aaron’s candy.
** Nope. There were tears. Lots and lots of tears. ***
*** I’m not saying if they were hers or mine. Could have been a bit of both.
Where Will The Talent Come From?
The semiconductor industry’s market growth will require around 70,000 to 90,000 workers over the next few years notes The New York Times, which also writes of a potential shortfall of about 300,000 engineers and 90,000 skilled technicians in the country by 2030.
“My biggest fear is investing in all this infrastructure and not having the people to work there,” said Shari Liss, the executive director of the SEMI Foundation, a nonprofit arm of SEMI, an association that represents electronics manufacturing companies. “The impact could be substantial if we don’t figure out how to create excitement and interest in this industry.”
The Biden administration, to meet the labor demand, announced it would create five initial “workforce hubs” in cities like Phoenix and Columbus, OH, to help train more women, people of color, and other underrepresented workers in industries like semiconductor manufacturing, according to The Times.
Help may be on the way in the form of recent college graduates, reports Handshake. “For full-time jobs posted this school year, applications were up 79% compared to last year for semiconductor companies and only up 19% for other companies. For internships, applications were up 163% for semiconductor companies compared to 21% for other industries. This trend also holds for core tech majors, the critical talent needed to fill the expected skills shortage in the industry.”
Mike Russo, President & CEO of The National Institute for Innovation and Technology, adds that apprenticeships are another route to finding help. In a guest column for the Semiconductor Industry Association, Russo writes, “In the U.S., the value of apprenticeships is underestimated. While apprenticeship programs are viewed as essential for well-respected trades like electricians or butchers, apprenticeships are uncommon in the tech sector. As a result, tech companies miss out on the benefits apprenticeship programs offer.”
Russo adds that direct training for job candidates is provided by apprenticeships, which bridge the gap between traditional education and necessary skills. They offer individuals from diverse backgrounds the opportunity to cultivate sought-after skillsets, leading to successful careers. Additionally, apprenticeships enhance job retention, enabling job seekers to obtain stable employment, which is advantageous for both the employee and the employer. As the U.S. endeavors to quickly enhance the skillset of its workforce in the nanotechnology sector, introducing Registered Apprenticeship Programs throughout the country benefits both job applicants and employers.