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.

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.