NARASIMHAN KASTHURI
SAN FRANCISCO, OCT 23
There is likely to be a shortage in the semiconductors industry in the US in the near future. Close to 90,000 workers are predicted to join the semi industry by 2025 to take care of the deficit of chip production in the US. Semiconductors or microchips are the primary building blocks to providing computing power to electronic devices like computers, smartphones and automobiles. This potential shortage is happening at a time when the semiconductor-related workforce is aging. Lack of child care also was a bane of women folk to take up these jobs.
- USD $ 200 million is being funded for Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Workforce and Education Fund over five years for the National Science Foundation to promote growth of the semiconductor workforce
- The prominent role of engineers in industry is not surprising since the creation of electrical circuits or chips requires designing, building and testing highly specialized technologies — all skill sets associated with engineering-related occupations
- To meet the domestic and the global demands for skilled workforce, Indian higher education institutes have started preparing industry-ready engineers.
India is one of the major contributors of skilled workforce for this industry. And now, two global semiconductor majors have inked pact with Gujarat government and will start operations by 2024. Tamil Nadu and Karnataka governments have also extending red carpets to semi industries with a slew of incentives.
To meet the domestic and the global demands for skilled workforce, Indian higher education institutes have started preparing industry-ready engineers.
The government is offering various incentives by the CHIPS Act to give a boost to the semiconductor industry.
$200 million is being funded for Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Workforce and Education Fund over five years for the National Science Foundation to promote growth of the semiconductor workforce, which faces the need to add 90,000 workers by 2025. (https://www.nist.gov/chips)
Investments in innovation, resilience, and a more competitive American future
Last year, Congress passed the CHIPS and Science Act, which provides funding for manufacturing, research and development to elevate the nation’s position in nanotechnology, artificial intelligence, clean energy and other transformational technologies, according to a survey by the US Census Bureau which tracks the industry trend..
The survey is being released as part of the manufacturing week. The semiconductor subsector includes workers and establishments that are part of the computer and electronic product manufacturing industry. As the demand for semiconductor chips grows, training and mobilizing workers will benefit from regional partnerships to help build facilities and public and private investments to expand training programs. These efforts are being met by community colleges and state-led construction projects, the survey stated.
According to the US Census Bureau’s American Community Survey (ACS), in 2022 there were 16.1 million manufacturing workers aged 16 and older, about 10.0% of the civilian workforce.
The ACS categorizes semiconductor workers under electronic component and product manufacturing. In 2022, there were 6,82,965 electronic component and product manufacturing workers or 4.2% of all manufacturing workers. The majority were non-Hispanic White (53.2%) and native born (67.4%).
Men accounted for around three-quarters of the electronic component and product manufacturing workforce (Table 1). Although women made up nearly half (47.3%) of the U.S. working population, they remained underrepresented in the manufacturing industry as well as in electronic component and product manufacturing.
One challenge for women entering and remaining in the labor force is access to childcare.
The vast majority (70.5%) of women working in the electronic component and product manufacturing industry did not have children under 18 living with them. In 2022, about 19% of working women in this sector had their own children between ages 6 and 17 only, while a smaller percentage (6.5%) of working women had preschool age children (under 6) only.
To help recruit and support workers with children, particularly working women, semiconductor manufacturers are seeking government incentives as part of the CHIPS Act to include a strategy for workers to access affordable, high-quality child care. This is likely to open the flood gates for new professionals and consulting companies akin to the Y2K boom, said Murali Jumbunathan, CEO of Omega Solutions of Cupertino.
The electronic component and product manufacturing workforce has an older age profile than the overall workforce. (
The semiconductor industry has moved to the foreground of political discourse both in the United States.
In 2022, 52.1% of workers in electronic component and product manufacturing were aged 45 and over. Workers between ages 16 to 34 made up around 28% of the semiconductor related workforce compared to 35.3% of all workers. (https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/08/icymi-experts-agree-chips-manufacturing-and-national-security-bolstered-by-childcare/)
This week Commerce Secretary Gina Raimondo marked a major milestone in the implementation of the CHIPS and Science.
Electronic component and product manufacturing workers were more likely than the total employed population to have a bachelor’s degree or higher: 31.3% of those aged 25 and older had a bachelor’s degree and 25% had a graduate degree. About 5% had less than a high school degree.
The prominent role of engineers in industry is not surprising since the creation of electrical circuits or chips requires designing, building and testing highly specialized technologies — all skill sets associated with engineering-related occupations. (https://www.bls.gov/soc/2018/major_groups.htm#17-0000)
Standard occupational classification system
In 2022, about 4 out of 10 electronic component and product manufacturing workers with at least a bachelor’s degree had a degree in engineering (43%) while 16.4% majored in business.
(Narasimhan Kasthuri was a veteran journalist with The Hindu and Financial Express covering business, IT etc. Now, in the US West Coast, he covers technology for NE. He can be contacted @narasimhan.kasturi@yahoo.com, Mobile: +1 (650) 793-0056)
