With government money to spur them on, the semiconductor industry in the US is forging ahead with dozens of projects to expand domestic manufacturing.
But there’s a big problem: not enough labor to staff those new or upgraded facilities once they’re completed, according to a new report from professional service firm McKinsey & Co. The talent needed to meet the surge in chip demand, which is particularly acute because of artificial intelligence (AI) adoption, spans three distinct labor pools — construction craft laborers, engineers, and technicians.
“Despite industry groups’ efforts to raise awareness and boost recruitment, the supply remains inadequate and staffing shortages could put domestic objectives for the industry at-risk, drive-up labor costs, and delay or diminish the return on this monumental investment,” McKinsey said in its report.
The CHIPS & Science Act (now called The CHIPS for America Act) passed by Congress in July 2022 set aside more than $52 billion in government incentives to spur semiconductor development and production on US soil. In addition to those investments, semiconductor companies have announced more than $200 billion in US fab investment through 2032.
McKinsey & Co.
New builds or fab plant expansions are planned in 16 states. For example, McKinsey’s analysis of company data shows that approximately 10,000 new job openings will be created through expanded operations in New York, with another 7,500 or so jobs created by four new fab builds in Arizona.
Industry analysts say the CHIPS Act is having its desired effect — the largest semiconductor designers and makers are investing in the US. By 2030, research firm IDC expects that 30% of the leading-edge chip technology will be produced in the US, Western Europe, and Japan.
2024-05-17 08:00:03
Source from www.computerworld.com