- The semiconductor industry is recruiting workers in a tight labor market as competition for talent increases and funding from the CHIPS and Science Act becomes increasingly fragmented.
- In addition, the entire U.S. economy is expected to face a shortage of as many as one million workers by 2030.
- GlobalFoundries, the world’s third-largest chipmaker, is casting a wide net to recruit talent.
- The company is looking for experienced candidates, but also employees from reintegration programs and an initiative for women in the construction sector.
The semiconductor industry is recruiting workers in a tight labor market as competition for talent increases and funding from the CHIPS and Science Act, which aims to boost domestic manufacturing, becomes increasingly fragmented.
Additionally, the U.S. economy is expected to face a shortage of as many as one million workers by 2030 as generative artificial intelligence further fuels the in-demand sector.
According to a 2023 study by the Semiconductor Industry Association, the U.S. chip industry is expected to face a shortage of 67,000 technicians, computer scientists and engineers by 2030, while the U.S. economy as a whole faces a shortage of 1.4 million such workers.
A separate study from Deloitte found that the talent shortage in the semiconductor sector could become even worse due to the global economic climate and ongoing supply chain issues.
A wafer sorter at GlobalFoundries’ semiconductor manufacturing facility in Malta, New York, on June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
GlobalFoundries, the world’s third-largest chipmaker, is casting a wide net to recruit talent. The company has been looking for experienced candidates, along with candidates from its own workforce re-entry program and a women in construction initiative.
The company makes chips for everyday products, from electronics and phones to cars, as well as components for aerospace and defense. Major customers include General Motors and Lockheed Martin.
In 2021, the company launched the industry’s first registered apprenticeship program, which is full-time, paid and benefits, with training at no cost to the apprentice. It takes two years or less to complete and requires only a high school diploma or equivalent and an interest in the mechanical field. About 50 apprentices have gone through the program so far, the company said. It has recruited graduates with technical associate degrees from regional community colleges and veterans who are retiring from the military into the program.
GlobalFoundries is working to fill hundreds of positions globally and is hiring thousands of people annually, a pace it expects to continue, Chief People Officer Pradheepa Raman told CNBC in an interview. Raman said maintaining the same workforce is “not an option” for the industry as demand rises. Needs range from engineers to product managers to corporate functions.
“That’s why we’re very, very aggressive in our workforce development efforts,” Raman said. “And if you don’t get traditional talent, [the solution is] “Our approach is to develop talent, identify alternative talent pools, people who work in different areas, and demonstrate that there are some very welcome opportunities within the semiconductor industry.”
GlobalFoundries’ semiconductor manufacturing facility in Malta, New York, on June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
Employees also have room for advancement, and training and retaining existing employees is essential in this competitive environment. Morgan Woods, 28, joined GlobalFoundries’ Malta, New York, plant in 2021 as a technician. Woods has now moved into a training and development analyst role at the company, overseeing the training of technicians, engineers and management, as well as ensuring compliance. Woods said compliance is critical as the company expands into the automotive sector and partners with GM.
“As demand for microchips increases, we absolutely need more manpower to support the continued rollout of microchips and meet our daily targets,” Woods said.
Woods has taken advantage of a GlobalFoundries benefit launched in May that allows eligible U.S. employees and new hires to receive a tax-free lifetime total of $28,500 in student loan debt. It includes qualified loans for all types of degrees and credit-based certificate programs offered by U.S. universities and colleges. So far, the number of applicants has surpassed 200, exceeding expectations, the company said.
“By participating in this program I will be in a much better financial position to not only purchase a home in a few years, but also to expand my family and have children,” Woods said.
In addition to helping create engineering and computer science jobs, CHIPS and Science Act funding will also fuel the growth of GlobalFoundries’ manufacturing facilities in New York and Vermont. In February, the company announced $1.5 billion in planned CHIPS funding to expand manufacturing capacity. It predicts that the funding, along with state and local dollars, will help create approximately 1,500 manufacturing jobs and 9,000 construction jobs over the life of planned projects.
The manufacturing and construction industries have also been experiencing a shortage of personnel recently, and they are keen to attract new and younger workers.
“We believe that the challenges we face in recruiting can be solved by taking an ecosystem approach to workforce development and making our organization one of the best places to work through the benefits we offer,” said Raman.