The semiconductor industry is currently facing a significant challenge in recruiting workers in a tight labor market. This is being exacerbated by the competition for talent ramping up and the funding from the CHIPS and Science Act being dispersed to spur domestic production in the United States.
There is a projected shortfall of as much as one million workers in the broader U.S. economy by 2030, with a particular focus on the semiconductor industry. This sector is expected to face a shortage of 67,000 technicians, computer scientists, and engineers by 2030, while the broader U.S. economy is anticipated to have a gap of 1.4 million such workers, according to a 2023 study from the Semiconductor Industry Association.
A separate study from Deloitte has found that the talent crunch in the semiconductor space could worsen due to the global economic environment and ongoing supply chain issues. This has put pressure on companies like GlobalFoundries, the third-largest chipmaker globally, to cast a wide net to recruit talent.
GlobalFoundries has been actively seeking out talent by targeting veteran candidates, candidates from its own workforce reentry program, and women in construction. The company creates chips for everyday products ranging from electronics and phones to autos, as well as components for space and defense. Major clients include General Motors and Lockheed Martin.
In response to the growing demand for talent, GlobalFoundries launched the sector’s first registered apprenticeship program in 2021. The program is full-time, paid with benefits, and requires no cost to the apprentice. It aims to train individuals within two years or less and only necessitates a high school diploma or equivalent with an interest in the mechanical field.
Training and retaining existing workers is crucial in such a competitive environment. GlobalFoundries emphasizes the need for continuous workforce development efforts to meet the rising demand in the industry. The company is working towards filling hundreds of roles worldwide and hires thousands of individuals annually.
GlobalFoundries offers various benefits to its employees, including a tax-free lifetime total of $28,500 toward student debt for eligible U.S.-based employees and new hires. This benefit has been well-received, with over 200 applicants already taking advantage of the program. Employees like Morgan Woods, who have benefited from such programs, have highlighted how it has put them in a better financial position.
Funding from the CHIPS and Science Act will also play a significant role in bolstering growth for GlobalFoundries. The company has announced $1.5 billion in planned CHIPS funding to expand its manufacturing capacity, which is expected to create 1,500 manufacturing jobs and 9,000 construction jobs over the lifetime of these projects. This funding aims to address the shortage of workers in manufacturing and construction.
The challenges faced in recruiting workers in the semiconductor industry can be addressed through a holistic approach to workforce development and creating attractive benefits offerings. Companies like GlobalFoundries are taking proactive steps to ensure they remain competitive in the talent market and continue to meet the growing demand for skilled workers.