Over the next five years, the global semiconductor industry will need to recruit no less than one million qualified workers . This forecast is not merely speculation; it originates from SEMI, an international organization dedicated to the electronics and integrated circuit sectors. Based on their predictions, Europe is expected to face a deficit of 100,000 engineers , while Asia will require an additional 200,000 qualified technicians .
Although some may view these numbers as overstated, they are grounded in reality. For instance, by 2024, the chip industry is projected to grow by 19.1% compared to 2023, thanks in large part to rising demand for GPUs in artificial intelligence (AI), advancements in consumer electronic products, the expanded adoption of 5G communications , and the burgeoning automotive market. In 2024, the global semiconductor industry is anticipated to generate $627.6 billion in revenue.
The Growing Talent Shortage in the Semiconductor Sector
TSMC, the largest chip manufacturer globally, is continually in a race to attract talent each year to satisfy its operational demands. In 2023 alone, the company recruited 6,000 engineers for its facilities in Taiwan, and this trend is expected to continue into 2024. Furthermore, between 2025 and 2028, TSMC plans to establish several semiconductor manufacturing plants in the U.S., Germany, Taiwan , and Japan . While TSMC is a standout performer in its field, many other chip designers and manufacturers will likely face similar recruitment challenges.
The average salary for an engineer with a master’s degree entering TSMC is over $65,500 annually.
In this competitive environment, salaries offered by these companies are quite high. The average salary of an engineer with no prior experience, holding a master’s degree and newly hired at TSMC, exceeds $65,500 annually (approximately €56,000 ). However, this is just the starting point . As engineers gain experience, their salaries typically rise significantly. The crux of the issue, as highlighted by SEMI, is that not enough individuals with the necessary technical skills are being trained in universities to meet the imminent demand.
Moreover, many of the senior engineers currently in the industry are approaching retirement or will have done so before 2030. For instance, in the U.S., a staggering one-third of employees in integrated circuit companies are 55 years or older . Similarly, in Germany, another third of technicians who have developed their careers in the semiconductor field are expected to retire in the next decade. The challenge ahead also requires that the next generation of engineers possess advanced competencies in AI and machine learning .
Semiconductor companies recognize the looming challenges, prompting many to implement initiatives that extend beyond merely providing attractive salaries . Some strategies include investing in the professional growth of employees, offering flexible work arrangements to encourage retention, pursuing candidates with non-traditional profiles to prioritize skills over formal education, and actively promoting the recruitment of women into the industry. Alarmingly, women currently hold only 17% of technical roles in the semiconductor sector.
Image | TSMC
For further details, visit SEMI.
In summary, the semiconductor industry faces a chronic talent shortage that threatens its capacity to meet rising global demand. With salaries and recruitment efforts ramping up, companies must also address the foundational educational and skill-based challenges that have led to this crisis. Diversification of the workforce and enhanced training programs will be essential for sustaining growth and innovation in the coming years.