U.S. Chip Industry Faces 157,000-Worker Shortage as AI Fabs Expand

The U.S. semiconductor industry’s massive manufacturing expansion is running into a fundamental problem: finding enough skilled workers to operate the new factories.

The industry could face a shortage of up to 157,000 workers by 2030, according to research from McKinsey and the SEMI Foundation. Just 3% of U.S. engineering graduates who take engineering jobs enter the semiconductor sector each year, while 73% of chip employers report difficulty filling engineering positions.

The demand for workers is robust. Chipmakers have invested billions of dollars in U.S. production to supply processors and memory for AI and other compute-intensive applications. The buildout is creating major demand for engineers, technicians and supply chain workers across several states.

Samsung, for example, is developing two new fabrication plants in Taylor, Texas, as part of a $35 billion expansion. The company expects the fabs to create about 3,500 jobs. But the company has raised concerns about whether the U.S. has enough technical workers to meet that demand.

TSMC is expanding its Arizona manufacturing operation, while Micron is building an advanced memory fab in Boise, Idaho, and another major manufacturing facility in Clay, New York. SK Hynix is constructing a $4 billion memory packaging facility at Purdue Research Park in West Lafayette, Indiana.

AI is adding urgency to these projects. Advanced AI systems require vast quantities of logic and memory chips, prompting chip companies to add capacity. Yet building a fab does little to increase production if companies cannot recruit enough trained employees to run the equipment.

For now, Asian expertise is helping fill the gap. Samsung and SK Hynix are temporarily bringing employees from South Korea to their new U.S. operations. Samsung has also sent American employees to South Korea for hands-on training. Similar measures were used by TSMC as it prepared its Arizona operations.

Numerous Training Programs

The longer-term strategy is to train more workers in the U.S. Purdue University launched semiconductor degree programs in 2022 and now has about 2,500 students enrolled in chip-related courses each semester.

Arizona State University has developed semiconductor training infrastructure that includes its MacroTechnology Works cleanroom, with Applied Materials providing $200 million for a new research and development center.

Chipmakers are putting their own money into workforce development. Intel committed $50 million for scholarships at more than 80 institutions in Ohio, while Samsung has funded programs at universities in Texas and Illinois and donated $1 million for technical labs at Taylor High School.

TSMC is also recruiting from universities as it works to fill roughly 6,000 positions at its first three Arizona fabs. Since passage of the CHIPS and Science Act in 2022, more than 80 community colleges have launched or expanded semiconductor programs.

Pay could become another lever for attracting workers. Typical U.S. semiconductor jobs pay between $127,000 and $187,000 annually, according to the SEMI Foundation, while senior positions can exceed $238,000. South Korean chipmakers have offered far larger bonuses in a highly competitive labor market.