Taiwan tackles chip talent drought with stem education push
taipei, Monday, 4 August 2025.
Taiwan’s semiconductor leaders are investing in education to combat a growing talent shortage. TSMC, MediaTek, and UMC are backing summer camps and university programs. These initiatives aim to inspire young people and build a workforce for the future. Taiwan faces a demographic challenge, with annual births nearly halving in a decade. The number of STEM graduates has also fallen. Taiwan’s semiconductor job openings have surged to over 33000. One summer camp participant noted the importance of semiconductors in video games and AI.
Addressing the talent gap
Taiwan’s Ministry of Education is taking action to address the shortage [3]. New initiatives include partnerships between universities and industry leaders like TSMC [3]. The goal is to increase the number of graduates with semiconductor-related degrees by 20% by 2027 [3]. A new scholarship program is scheduled to launch in September 2025 [3]. TSMC also intends to expand its internship program by 15% in 2026 [3].
Impact on tsmc’s manufacturing capacity
These educational investments could bolster TSMC’s manufacturing capacity [1][3]. A steady talent pipeline is crucial for maintaining and expanding advanced fabrication facilities [1]. Vanguard International Semiconductor chairman Leuh Fang noted that the semiconductor industry’s growth is outpacing the talent produced by schools [1][2][3]. Synopsys is considering hosting similar camps internationally, given Taiwan’s aging population [1][2][3]. Synopsys Taiwan chairman Robert Li emphasized the urgent need to strengthen STEM education to address this demographic challenge [1][2].
Geopolitical risks and market leadership
Taiwan’s semiconductor prowess is vital to its international standing, especially amid geopolitical tensions [2]. A decline in the semiconductor industry would threaten Taiwan’s economic stability [2]. Securing its talent pool is, therefore, essential for TSMC to maintain its market leadership [1][2][3]. The talent shortage extends beyond high-level engineers to include crucial production personnel [2]. Job openings in the semiconductor sector have increased significantly, rising from 19,401 in Q2 2020 to 33,725 in Q2 2025 [1][2][3].
The shift towards ai talent
The semiconductor industry is seeing a surge in demand for AI-related skills [5]. AI-related job openings have increased by 15% in the week ending July 27, 2025 [5]. The average salary for AI engineers in Taiwan’s semiconductor sector is approximately NT$2,500,000 per year [5]. This shift highlights the industry’s focus on advanced technologies [5]. Some reports indicate that approximately seven out of ten semiconductor job openings are difficult to fill, underscoring the talent shortage [4].
broader industry trends
The talent landscape is evolving, requiring professionals with adaptability and resilience [4][5]. The demand is growing for ‘compound’ talent, combining hardware and software expertise, to support emerging applications like edge computing and AI chips [4]. As TSMC expands internationally, it seeks individuals with global perspectives and management skills [4][5]. An ITRI director, Lin Chao-hsien, emphasized that adaptability is crucial for Taiwanese professionals [5].