The semiconductor industry is hiring in a tight labor market as competition for talent increases and funding from the CHIPS and Science Act designed to boost domestic manufacturing continues to dissipate.
It also looks at a projected shortfall of up to one million workers in the broader US economy by 2030 as productive AI adds fuel to the demand side.
The U.S. chip industry is expected to face a shortage of 67,000 technicians, computer scientists and engineers by 2030, while the broader U.S. economy is expected to have a gap of 1.4 million workers, according to 2023 study by the Semiconductor Industries Association.
A separate study by Deloitte found that the semiconductor talent crunch could worsen due to the global economic environment and ongoing supply chain issues.
A wafer sorter inside the GlobalFoundries semiconductor manufacturing facility in Malta, New York, on June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
GlobalFoundries, the world’s third-largest chipmaker, casts a wide net to recruit talent. The company has sought veteran candidates, along with candidates from its own workforce re-entry program and a women in construction initiative.
The company creates chips for everyday products, from electronics and phones to cars, in addition to aerospace and defense components. Major customers include; General Motors and Lockheed Martin.
In 2021, the company launched the industry’s first registered apprenticeship program, which is full-time and benefits-paid, with training at no cost to the apprentice. It is completed in two years or less, and requires only a high school diploma or equivalent and an interest in the engineering 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 leaving the military for the program.
GlobalFoundries is working to fill hundreds of roles at a time around the world and hires thousands annually, a pace it expects to continue, Chief People Officer Pradheepa Raman said in an interview with CNBC. Raman said maintaining the same workforce size is “not an option” for the industry as demand increases. Needs range from technicians to product managers and corporate roles.
“That’s why we’re very, very aggressive when it comes to our workforce development efforts,” Raman said. “And if you don’t get traditional talent, [the solution is] Our approach is cross-training talent, identifying alternative talent pools, people who are doing things in different areas, showing them that this is a very welcoming set of opportunities that exists in the semiconductor industry.”
The GlobalFoundries semiconductor manufacturing facility in Malta, New York, on June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
Employees also have room for advancement, and training and retaining existing employees is critical in this competitive environment. Morgan Woods, 28, started in Malta, New York, at GlobalFoundries’ fab facility as a technician in 2021. Woods has now moved into a training and development analyst role with the company, overseeing training for technicians, engineers and management, as well as and compliance. Woods said compliance is crucial as the company expands into the automotive space, partnering with GM.
“As the demand for microchips increases, we absolutely need more manpower to support the continued availability of microchips and meeting our daily goals,” Woods said.
Woods took advantage of a GlobalFoundries benefit that launched in May, allowing eligible employees and new hires based in the U.S. to receive a total of $28,500 tax-free toward student debt. Includes qualified loans for all types of credit-based degree and certificate programs offered by US universities and colleges. So far, the number of applicants has exceeded 200, exceeding expectations, the company said.
“By participating in this program, I will be in a much better financial position to purchase a home within the next few years, as well as consider expanding my family and having children,” Woods said.
In addition to helping create roles in engineering and computer science, funding from the CHIPS and Science Act will also boost growth for GlobalFoundries’ manufacturing plants in New York and Vermont. In February, the company announced $1.5 billion in planned CHIPS funding to expand production capacity. It predicts the funding, along with local and state money, will help create about 1,500 manufacturing jobs and 9,000 construction jobs over the life of the planned projects.
Manufacturing and construction have recently experienced labor shortages and are aiming to attract new and younger recruits to the sector.
“We believe that the challenges we face in recruiting can be solved through an ecosystem approach to workforce development and by making our organization one of the best places to work through the offerings we provide,” said Raman.
