The United States is set to expand its semiconductor manufacturing footprint significantly by tripling its manufacturing capacity over the next eight years. This growth is driving a substantial demand for more labor.
Recent projections estimate that an additional one million workers will be needed globally by 2030. This demand will be further intensified by the turnover and retirement of current workers. As more production is brought stateside, a talent shortage could impede our ability to expand supply chains, decrease inflation, and drive economic growth.
Many proposed solutions rely on macro-level strategies such as policy reform and long-term educational investments. While generational solutions like investing in STEM education are vital for industry longevity, they take years to implement.
Leading a robust semiconductor staffing division at Analoguetech, I see the urgent need for immediate, flexible, and effective tactics to address the looming labor shortage. Here are some strategies to overcome talent shortages and future-proof your semiconductor business.
Use a Talent-First Mindset to Build a Robust Candidate Pipeline
A talent-first mindset focuses on a candidate’s potential, aptitude, and ability to learn new skills rather than formal qualifications and past education. It broadens the talent pool by allowing greater flexibility in career backgrounds. This approach reduces hiring biases, creating a more equitable, inclusive, and innovative workplace.
More importantly, it is cost-effective and shortens the time to productivity, helping organizations build robust candidate pipelines. Organizations can quickly fill critical roles and address immediate needs without waiting for long-term systemic changes, allowing them to meet current demands and remain competitive.
Changing Paradigms
Adopting a talent-first mindset will require a shift in organizational culture for many companies. With the imminent labor shortage in the semiconductor industry, the business case for a talent-first mindset is stronger than ever. Organizations can benefit from cultivating a company culture where skills, continuous learning, and adaptability are prioritized and valued.
Historically, many companies have hired based on degree attainment, with most positions requiring college degrees. While this is still necessary for some roles in the semiconductor industry, college can be a barrier to entry for positions that need to be filled now. It is also time-consuming, taking two to four years at minimum to complete most degrees. According to the Semiconductor Industry Association (SIA), over half of projected new jobs will go unfulfilled at the current rate of degree completion.
Your organization doesn’t have time to wait for the next generation of talent to graduate and enter the workforce. So, what are some actionable steps you can take?
Strategic Solutions to Semiconductor Workforce Development
Skills-Based Hiring
Hiring with a talent-first mindset relies on transitioning to non-traditional workforce development tactics, such as skills-based hiring. This approach prioritizes specific skills, focusing on what candidates can do.
Since skills-based hiring utilizes a talent-first mindset, it can:
- Accelerate time to productivity by leveraging existing capabilities over time-based metrics like degree attainment.
- Allow organizations to unite candidates with varied career backgrounds, fostering a productive and innovative workplace.
Unlike traditional hiring methods, skills-based hiring ensures all candidates with relevant skills, regardless of their background, are considered for the job.
Bridge Talent Gaps with Nearskilled Resources
One of the most underrated and underutilized strategies for workforce development is nearskilling. Finding talent with transferable technical skills is a creative way to solve talent shortages. With nearskilling, candidates equipped with adjacent skills are trained to fill specific roles. In the semiconductor industry, this means tapping into talent from related fields like the automotive, military, and medical devices/pharmaceutical industries.
Veteran Alignment
A prime example of a nearskilled talent pool is our Veterans. They have valuable technical expertise and other skills that can be easily adapted to the semiconductor industry. Hiring Veterans not only helps reduce Veteran under/unemployment but also brings highly disciplined, experienced professionals to your organization.
Analoguetech’s Semiconductor Apprenticeship Acceleration Program (SAAP)
At Analoguetech, we’re proactively addressing shortages by partnering with The National Institute for Industry and Career Advancement (NiiCA) to offer a Department of Labor (DOL)-approved semiconductor apprenticeship program. Our apprenticeship program offers a sustainable solution to providing competitive talent.
This program runs for 18 months to two years. Participants receive hands-on training and education. Our earn-while-you-learn model prioritizes foundational competencies and skills-based learning, helping us get qualified talent into the workforce faster.
Veterans qualify for additional benefits because the program is GI Bill eligible, allowing us to further broaden our talent pool and help Veterans transition to successful careers in semiconductors.
Analoguetech Offers Sustainable Talent Solutions
Hiring right the first time is crucial, both financially and timewise, especially in a labor shortage situation where time is of the essence. Since a talent-first mindset and skills-based hiring are non-traditional hiring methods, it may be challenging for organizations to readily identify the right talent.
But the semiconductor talent gap demands urgent and innovative solutions. Embracing these hiring strategies can effectively bridge talent gaps in the semiconductor industry and beyond.
At Analoguetech, our semiconductor division offers full-scale staffing and professional services, providing scalable solutions and 24/7 support to ensure businesses have the talent they need. Together, we can help your business on the path to a trillion.
