"U.S. Semiconductor Manufacturing Facilities Have No Workers"...Samsung and Micron Face 'Red Alert' for Manpower Shortage

▲ Samsung Electronics, SK Hynix, SanDisk (SNDK), Micron (MU)/AI-generated image

Global semiconductor companies, which are expanding their semiconductor manufacturing facilities in the U.S., have hit a massive wall of severe shortage of skilled professionals. While they are rushing to expand factories in line with the artificial intelligence (AI) boom, they are unable to secure on-site technical personnel in time, putting a red light on overall factory operations and production plans.

According to CNBC, a U.S. economic media outlet, on September 17 (local time), a joint analysis by the SEMI Foundation, under the Semiconductor Industry Association, and McKinsey projected that the U.S. semiconductor industry will face a shortage of up to 157,000 workers by 2030. Only 3% of U.S. engineering graduates enter the semiconductor industry each year, and 73% of local semiconductor employers reported extreme difficulty in recruiting engineers.

The sense of crisis is also escalating among major manufacturers such as Samsung Electronics and Micron. Samsung Electronics, which is investing $35 billion to build a foundry plant in Taylor, Texas, urgently needs to secure approximately 3,500 workers. Jon Taylor, Vice President of Samsung Austin Semiconductor, stated in an interview with CNBC, "There is a dire shortage of technical talent in the workforce supply chain." Micron, which is building advanced memory plants in Idaho and New York, and SK Hynix, which is building a $4 billion packaging plant in Indiana, are also engaged in fierce competition for the same talent pool.

Companies facing urgent issues are temporarily dispatching personnel from their Korean headquarters to U.S. sites as a short-term measure. Samsung Electronics and SK Hynix are deploying a large number of skilled Korean workers to set up equipment and prepare for operations at new U.S. factories, and are sending locally hired personnel to Korea for several months of practical training. While they are expanding partnership programs with major universities like Purdue University and Arizona State University for long-term talent development, the pace of graduate supply cannot keep up with the factory completion schedules.

Industry experts point out that even with high salaries, with industry average annual salaries ranging from $127,000 to $187,000 and top positions exceeding $238,000, it is difficult to solve the structural problem of talent gravitating towards the big tech software sector. There is a warning that if global semiconductor companies that have made massive facility investments cannot overcome the shortage of skilled personnel, the entire U.S. semiconductor self-sufficiency initiative could be jeopardized.

[Key Article Summary]

-A study found that the U.S. semiconductor industry is expected to face a shortage of up to 157,000 workers by 2030.

-With only 3% of engineering graduates entering the industry, major companies like Samsung Electronics and Micron are experiencing deepening labor shortages for factory operations.

-Samsung Electronics and SK Hynix have urgently deployed Korean technical personnel to local sites to fill the short-term gap.

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