US semiconductor manufacturers need a few good workers. The industry is facing a projected labor shortage, as the demand for engineers and technicians is outpacing supply. Senior partner Bill Wiseman and colleagues find that by 2029, the industry could face a talent gap of between 59,000 and 146,000 workers. If the CHIPS Act can meet its targets, technician shortages may be mitigated. But demand for engineers will likely worsen unless planned workforce development programs can boost labor supply—which may take until 2028.
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Two sets of bar graphs show the projected annual demand and supply, and the shortfall between them, for engineers and technicians in the semiconductor industry from 2024 to 2029. Per the exhibit, the semiconductor industry will face a significant labor shortage for both engineers and technicians.
Demand for engineers starts at under 9,000 full-time equivalents (FTEs) in 2024, peaks at about 20,000 FTEs in 2027, and then declines to about 11,000 FTEs in 2029. Supply for engineers is much lower than demand, at approximately 2,000 FTEs per year.
Demand for technicians starts at roughly 7,000 FTEs in 2024, peaks at about 17,000 FTEs in 2027, and declines to nearly 10,000 FTEs in 2029. Supply for technicians starts at about 1,000 FTEs in 2024 and remains steady at that number through 2028, peaking at nearly 2,000 FTEs in 2029.
Dotted extensions to the bar graphs for each year represent estimated support from CHIPS and non-CHIPS programs, which, given time, will have an impact on narrowing the demand–supply gap for engineers and may well eliminate the shortfall altogether for technicians.
Source: 2023 SEMI World Fab Forecast database; CHIPS Program Office; US Bureau of Labor Statistics employment data; US Census Bureau.
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To read the article, see “Reimagining labor to close the expanding US semiconductor talent gap,” August 2, 2024.