Title: Labor Shortage Threatens US Semiconductor Production Boom, Immigrant Workers Crucial
Introduction:
The United States is currently witnessing a surge in semiconductor production following the passage of the CHIPS Act. However, the industry’s progress may be hindered by a severe shortage of skilled workers. According to a report by the Semiconductor Industry Association and Oxford Economics, the industry is expected to create 85,000 technical jobs by 2030, but nearly 80% of those positions are projected to remain unfilled. Complicating matters further, one-third of the semiconductor industry workforce is foreign-born, highlighting the impact of immigration hurdles on exacerbating the shortage.
TSMC Delays Arizona Plant Opening:
Taiwan’s TSMC, a leading semiconductor manufacturer, announced that its first plant in Arizona would be delayed by another year due to a shortage of specialized workers. TSMC Chairman Mark Liu stated that the production schedule for N4 process technology would be pushed out to 2025 as the company works to train local skilled workers with the assistance of experienced technicians from Taiwan. The delay underscores the pressing need for a qualified workforce in the semiconductor industry.
Immigration Laws and Hurdles:
The current immigration laws and hurdles make it difficult for foreign-born skilled workers to stay in the US, further contributing to the labor shortage. Todd Schulte, president of FWD.us, an immigration and criminal justice reform advocacy organization, emphasizes the necessity to reform the immigration law in order to build and sustain the future of the semiconductor industry. A recent analysis by FWD.us revealed that thousands of international students in the US will graduate in the upcoming academic year with advanced degrees in semiconductor-related fields, but restrictions hinder their ability to stay and contribute to the industry.
Outdated Immigration System:
Schulte argues that the US immigration system, designed in the 1950s and tweaked in 1990, fails to accommodate the economic needs of the 21st century. Limited work authorization, slow processing times, excessive regulations and paperwork, and high visa sponsorship costs are major challenges faced by companies in attracting and retaining international talent. Overhauling the immigration system would not only benefit the semiconductor industry but also prove advantageous for the overall US economy.
The Importance of Immigration Reform:
Research indicates that relaxing immigration policies and attracting talented foreign workers would provide a significant boost to the US economy. Immigrants contributed over $330.7 billion in federal income taxes and over $492 billion in total taxes in 2019. Additionally, the US has been able to maintain population growth due to immigration, countering the population decline seen in other developed countries. Without reforms to the immigration system, the labor gap in the country will continue to widen, posing significant challenges for industries such as semiconductors.
Impacts on the Semiconductor Industry:
The CHIPS Act, signed into law last year, has resulted in substantial investments in semiconductor projects. However, the US may struggle to attract top talent in the industry if immigration policies are not modernized. As other countries enhance their immigration systems to compete with the US, the American semiconductor industry risks losing its edge. It is crucial for the US to design a system that allows for a skilled workforce and positions the country as a leader in education and innovation.
Conclusion:
The booming semiconductor industry in the US faces a significant labor shortage that could impede progress and hinder the country’s ability to compete globally. With an overwhelming majority of projected technical jobs expected to go unfilled and a large foreign-born workforce, immigration hurdles exacerbate the shortage. To sustain the industry’s growth, the US must undertake immigration reform that accommodates the needs of the 21st-century economy. Failure to do so risks losing top talent and jeopardizing the country’s position as a leader in technological innovation.