The global semiconductor industry is short one million skilled workers by 2030, threatening its $1 trillion revenue target.
According to the latest report by Deloitte, the demand for artificial intelligence (AI), especially generative AI (GenAI), is currently skyrocketing, requiring highly skilled human resources, while the current workforce is aging and job attraction is low compared to other technology companies.
The US semiconductor workforce is aging, with 55% over 45 and less than 25% under 35. The situation is similar in Europe, with 20% of workers over 55 and Germany expecting 30% of its workforce to retire in the next decade. Inconsistent knowledge management and a lack of younger talent to inherit experience are also significant barriers.
Deloitte predicts the chip industry will be worth $1 trillion by 2030.
In addition, localization of production and global demand trends also contribute to the labor shortage, forcing companies in the industry to compete with each other for limited human resources.
The semiconductor industry is now in its seventh recession since 1990, with revenue falling 9% to $520 billion in 2023. While revenue is expected to rise 16% in 2024 to $611 billion and on track to hit $1 trillion by 2030, this recovery will require addressing the workforce problem.
The problem has become a global one. 80% of international students who graduate from semiconductor-related engineering programs in the US do not stay after graduation.
In Asia, India's semiconductor industry is expected to face a shortage of 250,000 to 300,000 professionals by 2027, while the European Union needs an additional 400,000 workers to meet its target of doubling its market share under the European Chip Act.
To address this challenge, Deloitte recommends that companies in the industry implement comprehensive strategies for workforce planning, skills development, and talent retention.
This includes partnering with educational institutions, industry peers, and community organizations to develop sustainable and diverse talent pipelines. Investing in technology like AI to optimize workforce management and develop flexible training programs are also important solutions.
