Taiwan Semiconductor Manufacturing Company (TSMC) is on a relentless quest to recruit talent year after year to meet the escalating demand for semiconductors. In 2023 alone, TSMC recruited 6,000 engineers for its facilities in Taiwan, and this momentum is expected to continue into 2024 . With plans to establish several semiconductor manufacturing plants between 2025 and 2028 in the United States, Germany, Taiwan, and Japan, TSMC stands as a titan in the semiconductor industry. However, it’s not just TSMC that’s facing a talent crunch; other chip designers and manufacturers are also under pressure to bolster their workforce.
For Taiwan, the semiconductor industry is not just profitable; it serves as the backbone of its economy. This sector contributes between 13% and 15% to the country’s gross domestic product (GDP) and represents nearly 40% of its total exports. Moreover, the production of cutting-edge chips is pivotal for Taiwan’s geopolitical relevance. Hence, it’s crucial for major tech players like TSMC, UMC, Foxconn, and MediaTek to secure a skilled and abundant workforce.
To bridge the talent gap, some companies in Taiwan are resorting to summer camps and university programs aimed at young minds. A noticeable trend is the international nature of some of these camps, reflecting a significant demographic concern: Taiwan’s birth rate is declining . As domestic talent diminishes, Taiwanese companies specializing in semiconductors must look beyond local borders to fill their workforce needs.
In Europe, 100,000 More Engineers Are Needed
The Taiwanese government is backing these recruitment initiatives, recognizing that the country’s leading semiconductor firms require a sustained influx of well-trained engineers. The current local talent pool cannot meet the ever-growing demands, prompting institutions like National Taiwan University (NTU) to launch a global degree program in semiconductors aimed at attracting international students.
<img alt="Japan prepares its resurgence: in 2030 it plans to overcome the US and China in quantum computing" width="375" height="142" src="https://i.blogs.es/9de710/riken-ap/375_142.jpeg"/>In Germany, a third of the technicians who have developed their work careers in the chips industry will retire throughout the next decade.
The demand for talent is not exclusive to Taiwan. Globally, the semiconductor industry is projected to require one million qualified workers over the next five years. This estimate comes from SEMI , an organization dedicated to advancing the interests of the electronics and integrated circuits sectors. Europe alone is projected to face a deficit of 100,000 engineers , while Asia will need 200,000 qualified technicians.
Though these figures might seem alarming, they align with industry growth forecasts. By 2024 , the semiconductor industry is expected to grow by 19.1% , driven by soaring demand for GPUs for artificial intelligence (AI), consumer electronics, the expansion of 5G technologies, and the automotive sector’s advancements. The global semiconductor market is anticipated to generate $627.6 billion in revenue in 2024.
However, a pressing concern is that the educational system is not producing enough technically proficient graduates to meet industry needs. Many experienced engineers are approaching retirement age—more than one-third of staff in U.S. integrated circuit companies are 55 years or older . Similarly, a significant portion of technicians in Germany will be leaving the workforce within the next decade. Moreover, the incoming generation of engineers will be expected to possess advanced skills in AI and machine learning , adding another layer to the recruitment challenge.
Image | TSMC
More information | Reuters
In summary, the semiconductor industry stands at a critical juncture, facing a twin challenge of rising demand and a dwindling supply of skilled professionals. As TSMC and others ramp up recruitment through innovative programs, the ability to attract and nurture new talent will be paramount for sustaining growth in this vital sector.