Navigating the talent shortage in the semiconductor industry

In brief

• CHIPS Act funds add a level of complexity to workforce planning for US-based semiconductor companies.
  
  
• Tariffs are changing the landscape for domestic and international workforce needs. Cost fluctuations, for example, may constrain future hiring plans for fabs.
  
  
• For fabs and R&D centers to be operational and competitive, leaders must nurture and maintain a significant talent ecosystem - and in some cases, build it from the ground up.
  

The semiconductor boom: A race for talent and innovation

Governments and private companies are racing to expand domestic semiconductor manufacturing capacity, driven by the surging demand for advanced chips, especially from the generative AI boom. To stay competitive and resilient, the industry must build a strong talent ecosystem from the ground up. Accenture modelled three scenarios based on Oxford Economics data to understand the impact of tariffs on the talent gap. In the Full Reindustrialization scenario, which assumes increased domestic demand and production with minimal cost pressure, we found significant industry growth but a critical talent shortage.

The push to reindustrialize could create over 100,000 direct jobs in the semiconductor industry over the next decade, increasing the talent pool by 20% to 25%. The industry is already short by about 76,000 jobs. In a full reindustrialization scenario, this gap could double, reaching up to 153,000 required roles. Young talent, aged 16 to 24, is expected to fill around 26,000 to 27,000 of these roles, but the remaining gap will be significant. 

The CHIPS Act adds new layers to workforce planning, requiring companies to address needs like facility construction and childcare.

To bridge the talent gap, the semiconductor industry must reinvent its approach. Our research highlights three key initiatives to meet these needs and prepare for the future.

To effectively address the talent gap, semiconductor company executives must prioritize the recruitment, development, and retention of skilled individuals. A strategic workforce plan can help companies tackle their talent challenges and position themselves for long-term success. By collaborating with educational institutions to create tailored curricula and internships, fostering a diverse and inclusive culture, and leveraging government incentives like the CHIPS Act, companies can build a robust and adaptable talent ecosystem. These steps will ensure they are well-prepared for the challenges and opportunities ahead, driving both resilience and growth.