US Semiconductor Production Expansion Faces Workforce Shortage: Over 67,000 STEM Jobs at Risk by 2030

The global reliance on semiconductors, the essential components powering a wide range of modern devices, has prompted an increase in chip production. This expansion has spurred nations to prioritize semiconductor supply chains and workforce development. A recent agreement between President Joe Biden and Vietnam highlights this commitment to strengthening the global semiconductor industry.

While initiatives like the CHIPS and Science Act have injected $52 billion into semiconductor manufacturing and research in the United States, another challenge looms. To sustain this growth, the industry requires a skilled workforce versed in science, technology, engineering, and math (STEM).

According to a study by the Semiconductor Industry Association (SIA) and Oxford Economics, the US semiconductor workforce is projected to expand by nearly 115,000 jobs by 2030. However, a critical issue is emerging: around 67,000 positions in semiconductor-related roles, including technicians, computer scientists, and engineers, risk remaining vacant by 2030 without significant STEM workforce development efforts.

This challenge extends beyond the semiconductor industry. The broader US economy is expected to create 3.85 million jobs requiring STEM proficiency by 2030. Of these, 1.4 million jobs could go unfilled without substantial STEM workforce growth.

The shortage of STEM workers is a multifaceted issue that demands partnerships between government, industry, and academia. These partnerships should explore innovative approaches to cultivate STEM talent within the country while facilitating opportunities for international students with advanced degrees.

Addressing this talent gap necessitates early engagement with STEM subjects, beginning as early as kindergarten. Collaborative efforts between educators and public and private-sector leaders are required to launch recruitment and educational campaigns, scholarships, research fellowships, and more.

Promising initiatives are already underway in different parts of the United States. For example, the Maricopa County Community College District offers intensive training programs for students interested in semiconductor careers. Purdue University in Indiana has launched semiconductor degree programs in collaboration with Ivy Tech Community College, offering master’s, bachelor’s, and associate degrees. Austin Community College, in partnership with Silicon Labs, offers a certificate program in integrated circuit layout and design.

These partnerships serve as models for tackling the workforce challenge but need to be scaled nationwide with urgency, as it will take years, if not decades, to develop a robust domestic talent pool.

Furthermore, by 2030, the US semiconductor industry is projected to face a shortage of 17,000 master’s and Ph.D. engineers. Over 50% of master’s engineering students and 60% of Ph.D. engineering students in the US are foreign citizens. However, approximately 80% of master’s graduates and 25% of Ph.D. graduates leave the country following graduation, due to immigration policies and other factors. Reforming immigration laws to make it easier for US companies to attract and retain international students with advanced degrees is crucial.

Expanding the talent pool is vital for bolstering the economy, enhancing national security, advancing technological competitiveness, and strengthening supply chains. Collaboration with global partners is also essential, as demonstrated by the memorandum of cooperation between the US and Vietnam to expand the semiconductor ecosystem in Vietnam, including workforce development initiatives.

The US is on the cusp of a new era in semiconductor production, aligning with its leadership in semiconductor research and development. To realize this vision fully, investment in the workforce is just as critical as investment in chip manufacturing.

Matt Johnson is the President and CEO of Silicon Labs, a semiconductor company based in Austin, Texas, and serves as Chairman of the Board of Directors of the Semiconductor Industry Association (SIA).