chip industry brace for impact: one million skilled workers needed by 2030

2025-06-26 general

San Jose, Thursday, 26 June 2025.
The semiconductor industry is booming, but a major skills gap looms. By 2030, the industry will need one million more skilled workers. This shortage threatens production and innovation at giants like NVIDIA, ASML, and TSMC. The talent crunch extends beyond engineers. The industry also needs 100,000 middle managers and 10,000 top-tier leaders. This shortage could affect stock performance. Action is needed to secure the industry’s future.

global talent shortage

The semiconductor industry is not alone in facing workforce challenges. A study by Korn Ferry indicates that by 2030, the world could see a shortage of over 85 million workers, which is equivalent to the population of Germany [7]. This gap could lead to a potential loss of $8.5 trillion in global output annually [7]. This widespread talent scarcity highlights the urgency for companies and governments to proactively address workforce development and talent acquisition strategies to mitigate future economic impacts [7].

regional impacts and government initiatives

The talent shortage is a global issue, with specific regions facing distinct challenges. Europe is projected to lack over 100,000 engineers, while the Asia-Pacific region could exceed 200,000 [1]. In response, governments worldwide are launching initiatives to bolster their semiconductor industries. The European Chips Act aims for a 20% EU production share by 2030 with a €43 billion investment [1]. The U.S. is investing $52.7 billion in domestic manufacturing and R&D through the CHIPS and Science Act, while the UK has a £1 billion initiative over 10 years [1].

taiwan’s strategy for talent retention

Taiwanese legislator Wan Mei-ling emphasized the need for Taiwan to cultivate, attract, retain, and protect talent [3][5]. Nvidia’s recent recruitment drive in Taiwan, offering salaries exceeding NT$5 million, highlights the island’s talent pool [3][5]. Wan Mei-ling suggests strengthening local education, improving talent retention policies, and attracting global talent to Taiwan [3][5]. She also cautioned against excessive talent outflow and industrial hollowing-out, urging proactive measures to keep Taiwan competitive in the global tech landscape [3][5].

addressing the talent pipeline

To combat the talent shortage, Wan Mei-ling proposes aligning higher education with core industries like semiconductors and AI [3][5]. This includes promoting industry-oriented courses, practical training, and industry-academia collaboration [3][5]. Tax incentives, housing subsidies, and improved work environments can help retain talent [3][5]. Streamlining residency and employment processes can attract global professionals, similar to Singapore’s approach [3][5]. These strategies aim to make Taiwan a hub where talent can thrive long-term [3][5].

automation as a solution

Facing persistent labor shortages, companies are turning to automation [7]. Anko Food Machinery, a Taiwanese food machinery brand, showcased its PS-900 samosa forming machine, which can produce 900 Punjabi samosas per hour with 100% handmade imitation [7]. This automation replaces manual labor, improves product quality, and increases production efficiency [7]. Anko is also using robotics, AI, and IoT to automate production processes and reduce reliance on manual labor [7]. This shift reflects a broader trend toward automation to mitigate labor shortages and enhance productivity [7].

investment considerations

JPMorgan Chase analysts suggest Asian tech stocks could rise an additional 15% to 20% this year, driven by AI momentum [6]. However, TSMC faces challenges, including potential revocation of exemptions for its China operations and New Taiwan dollar appreciation, potentially impacting profit margins by nearly 5 percentage points [6]. Investors should monitor companies’ strategies for managing talent shortages and adapting to geopolitical and market dynamics. Companies that proactively address these challenges are more likely to sustain growth and deliver long-term value [1][3][6].

Bronnen

semiconductor industry talent shortage