4 Ways to Fill the Talent Gap in the Semiconductor Industry

Updated June 2024

The COVID-19 pandemic caused a surge in demand for electronic devices while simultaneously disrupting the supply chain, resulting in significant semiconductor shortages. Car prices skyrocketed, vehicle production scaled back, and electronic device releases were pushed, all because manufacturers could not produce the chips needed to make consumer electronics.

Thankfully, market conditions have improved since the pandemic eased and the CHIPS Act was signed.

While the crisis is largely over, some issues persist. One of the most pressing concerns is the gap in semiconductor talent.

Research from Lightcast found that in order to double semiconductor production in the U.S., more than 230,000 new workers will need to be employed in the industry. However, current degree completion rates in fields like engineering and computer science suggest that 58% of new semiconductor jobs will go unfilled by 2030.

To avoid another crisis, employers and recruiters will need to get creative in their quest to find semiconductor talent. Read on to learn more about how your company can overcome this hurdle.

Upskill Your Workforce

One of the best ways to fill a talent gap is to upskill your current workforce. Employers should take stock of the specific skills and job gaps within their organization and evaluate what skills existing employees could learn to help bridge them.

Reskilling or upskilling employees could involve a variety of tasks, including providing on-the-job training, classroom-based professional development courses, or larger in-house training programs. How your company may decide to deploy an upskilling effort for your employee base will depend on your budget and time constraints.

Consider Entry-Level Talent

Another way employers across the country can overcome the semiconductor talent shortage is to focus less on hiring employees that already have the necessary skills.

Instead, you can focus more on finding entry-level employees who are eager to learn the technical, hands-on skills required in the semiconductor industry. This strategy is similar to upskilling, but it addresses the need to bring more people into the industry.

If you implement this strategy, consider partnering with experts in the semiconductor educational industry (e.g., trade or technical colleges or traditional universities) to properly identify the right entry-level talent. This partnership can ensure that the new hires will have the professional development support they need to grow their skills effectively.

Bolster Attraction and Retention Strategies

If you’re competing in the labor market to attract skilled workers, and you want to retain your top talent, you should evaluate your attraction and retention strategies.

You’ll want to assess your workplace benefits, recruiting strategies, and other workplace perks (e.g., gym discounts or employee recognition programs).

The top workplace perks to improve attraction and retention include the following:

Workplace flexibility—Workers across the U.S. want to work for companies that support their work-life balance. If it’s feasible for your business’s operations, consider allowing employees to add flexibility to their work schedule. Employers in the semiconductor industry could also consider revising their paid time off programs to ensure it meets industry standards.
Expansive health and wellness benefits—Many employers in the United States are required to provide health insurance for their full-time employees, but employees want more than just insurance coverage. They look to their employer to provide mental health benefits, which could be achieved through a comprehensive employee assistance program and more ancillary perks, like a subsidized gym membership or onsite fitness centers. If you require employees to be onsite and provide food (e.g., catered lunches or vending machines), consider including healthy options to support wellness at work.
Career development—Many employees want to grow their skills and advance in their careers. By investing in and promoting training and development programs at your organization, you will attract new talent and entice current talent to stay at your company. Other options for investing in employee career development include sponsoring or paying for workshops, webinars, or conferences and creating department mentorship programs.

Please note these are general ways to improve your company’s attraction and retention efforts. Based on your budget and the size of your company, you may need to be strategic with the changes you make. However, investing in expanding certain areas of your workplace benefits can help you stay ahead of the competition and attract and retain top talent amid the skills shortage.

Partner With a Recruiting Agency

Despite your best efforts, attracting and retaining top talent during the semiconductor talent shortage can be challenging.

That’s why partnering with the right recruiting agency is crucial. They understand the market and can help you secure the right employees for your organization.

Staffing agencies like Insight Global have extensive networks, allowing them to access a wider talent pool, including passive candidates who are not actively seeking new opportunities. Our industry expertise enables our 2,000+ recruiters to understand and meet the unique needs of the semiconductor industry.

Here are some additional benefits of using a staffing agency to hire semiconductor talent:

Flexible workforce scaling: Access to temporary contract workers allows you to adjust your workforce size as needed.
Test before you invest: The opportunity to test candidates before making a permanent hiring decision.
Streamlined hiring process: Efficient interview and hiring procedures save time and resources.

Don’t Delay Finding Ways to Overcome the Semiconductor Talent Shortage

The global economy depends on the chip and semiconductor industry, and demand for goods from this sector will only continue to grow.

Finding ways to overcome the talent shortage is critical for moving forward. By considering upskilling current employees, investing in developing entry-level employees, and bolstering attraction and retention efforts, your business can successfully navigate the talent challenge.

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