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In 2022, Deloitte expected that the global semiconductor industry would need to add a million skilled workers by 2030, or more than 100,000 annually. Two years later, that forecast still holds.
But key industry trends continue to compound the talent challenge as the industry races toward $1 trillion in revenue by 2030, according to a new report by Deloitte, the accounting and consulting giant.
The company said that advanced skills driven by demand for Generative AI (GenAI) mean that the talent needed for advancing technologies is often in high demand and can be difficult to attract and retain in a competitive talent market. The report’s timing is interesting, considering the U.S. is reportedly considering limiting sales of AMD and Nvidia AI chips aboard.
Deloitte foresees a $1 trillion chip industry by 2030.
The semiconductor industry is facing an aging workforce without a clear plan for succession, which may be further exacerbated by low industry appeal compared to the broader tech industry. I suppose this is because the chip industry isn’t as sexy as working for AI or social media companies.
Global solutions needed for a global challenge
Deloitte foresees a shortage of chip workers.
Localization of manufacturing, as well as overall global demand trends, is contributing to a talent and skills shortage that spans the globe. Semiconductor companies are often left competing over the same insufficient pool of existing talent.
And talent outcomes are tied to global chips laws. Both the U.S. and European chips legislation include specific objectives and grant application requirements regarding workforce development that companies should commit to in order to receive funding, remain in compliance, and achieve growth objectives.
Geopolitical concerns and supply chain fragility continue to contribute to the onshoring of manufacturing (advanced node, trailing node, memory) and back-end ATP (assembly, test, and packaging) processes.
A history of cycles
The cyclical chips industry experienced its seventh downturn since 1990, with revenues declining 9% to $520 billion for 2023. As a result, development of some new fabrication capacity has been extended, which has also likely delayed some of the immediate, short-term need for talent.
This downturn is expected to be temporary, with revenue set to grow by 16% in 2024 to an all-time high of $611 billion. With the industry back on track to reach the $1 trillion figure for 2030, talent will be needed to fuel that growth. But now there’s more time to optimize talent forecasts, mix, pipeline, skills and capabilities, and development plans.
A richer understan …