The semiconductor industry is recruiting workers in a tough labor market as competition for talent intensifies and funding from the CHIPS and SCIENCE Acts designed to boost domestic manufacturing continues to be distributed.
And as generative artificial intelligence spurs high-demand sectors, a shortage of as many as one million workers is predicted across the U.S. economy by 2030.
The U.S. semiconductor industry is expected to face a shortage of 67,000 technicians, computer scientists and engineers by 2030, according to a 2023 study by the Semiconductor Industry Association, while the U.S. economy as a whole is expected to face a shortfall of 1.4 million such workers.
A separate Deloitte study found that the global economic environment and ongoing supply chain issues could further exacerbate the semiconductor industry’s talent shortage.
A wafer sorter inside GlobalFoundries’ semiconductor manufacturing facility in Malta, New York, June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
GlobalFoundriesThe world’s third-largest semiconductor maker is hiring a broad range of talent and has sought out veteran candidates as well as candidates from its workforce re-entry program and its efforts for women in the construction industry.
The company makes chips for everyday products, from electronics and mobile phones to cars, as well as components for space and defense. General Motors and Lockheed Martin.
In 2021, the company launched the industry’s first registered apprenticeship program, which is full-time, paid, with benefits, and training is at no cost to the apprentice. It can be completed in two years or less and requires a high school diploma or equivalent and an interest in mechanical fields. The company said about 50 apprentices have graduated from the program so far. The company hires graduates with technical associate degrees from local community colleges and military veterans for the program.
GlobalFoundries The company is working to fill hundreds of positions at a time around the world, hiring thousands a year and expects that pace to continue, Chief Human Resources Officer Pradipa Raman told CNBC in an interview. Raman said maintaining the same size workforce is “not an option” for the industry as demand soars, ranging from engineers to product managers to corporate executives.
“That’s why we’re so aggressive in developing talent,” Raman says. “If we can’t get traditional talent, [the solution is] Our approach has been to cross-train people, identify alternative talent pools, people operating in different areas, and demonstrate that there is a very welcome set of opportunities in the semiconductor industry.”
GlobalFoundries’ semiconductor manufacturing facility in Malta, New York, June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
Employees also have room for advancement, making training and retention of existing employees critical in this competitive environment. Morgan Woods, 28, started working as a technician at GlobalFoundries’ manufacturing facility in Malta, New York, in 2021. Woods has now moved into the role of training and development analyst for the company, overseeing training for technicians, engineers and management, and ensuring compliance. Woods said compliance is crucial as the company expands into the automotive sector with GM.
“As demand for microchips increases, we will undoubtedly need more manpower to support the continued deployment of microchips and meet our daily goals,” Woods said.
Woods is taking advantage of a benefit GlobalFoundries launched in May that offers eligible U.S.-based employees and new hires tax-free student loan coverage totaling $28,500 over their lifetime. The program includes qualified loans for all degree types and credit-based certificate programs offered by U.S. universities and colleges. So far, more than 200 people have applied, the company said, beating expectations.
“Participating in this program will give me the financial security to purchase a home within the next few years and even consider expanding my family and having children,” Woods said.
In addition to helping create positions in engineering and computer science, CHIPS and Science Act funding will also help grow GlobalFoundries’ manufacturing plants in New York and Vermont. The company announced in February that it plans to use $1.5 billion in CHIPS funding to expand its manufacturing capacity. The company estimates that this funding, along with local and state funding, will create approximately 1,500 manufacturing jobs and 9,000 construction jobs over the life of its planned projects.
The manufacturing and construction sectors have recently faced labor shortages and are looking to attract new, younger workers into the industry.
“We believe that the challenges we face in recruiting can be addressed through our ecosystem approach to talent development and the benefits we have been providing to make us one of the best places to work,” Raman said.
