Addressing the talent gap 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.
   

Governments and private companies are racing to expand domestic semiconductor manufacturing to boost local production and mitigate supply chain risks. This push is also driven by the critical role semiconductors play in national security, particularly in AI and military applications. Achieving semiconductor self-sufficiency and resilience is essential and investments in fabrication facilities (fabs) and R&D centers will be key.

Our research highlights three broad initiatives that leaders can undertake concurrently to meet the industry’s talent demands and prepare for future needs. No single country has the necessary labor force to support full self-sufficiency, but these initiatives can help companies evolve their workforce and enhance their applicability across the value chain.

Semiconductor company executives understand that leveraging the right talent is crucial for staying competitive and driving organizational growth. They must take bold steps to prioritize recruitment, development and retention of skilled individuals. A strategic workforce plan can help companies effectively address their talent challenges, ensuring they are well-positioned for long-term success.