02 July 2024

US Chip Industry Facing Labor Shortage. . .Biden Administration Investing Heavily to address it.

Effort will award grants to workforce development projects
The shortage of technicians could reach 90,000 by 2030 
These 5 Charts Help Demystify the Global Chip Shortage - IEEE Spectrum

Sam Altman Seeks Trillions of Dollars to Reshape Business of Chips and AI -  WSJ

Global semiconductor shortage: How the US plans to close the talent gap

Global semiconductor shortage:
How the US plans to close the talent gap

The US chip industry is facing a labor shortage, and the Biden  administration is investing heavily to address it. | by HabitTrade | Jul,  2024 | Medium

The US chip industry is facing a labor shortage, and the Biden administration is investing heavily to address it. | by HabitTrade | Jul, 2024 | Medium

Source:Zhitong Finance

The Biden administration is launching a program to train a workforce in the United States for semiconductor production in order to avoid the threat of a labor shortage to domestic semiconductor production.

The program is called the Labor Partnership Alliance and will use some of the $5 billion in funding allocated by the US federal government for the newly established National Semiconductor Technology Center (NSTC). 
  • The NSTC plans to provide funding for up to 10 workforce development projects, with budgets ranging from $500,000 to $2 million.
  • The center will also launch additional application processes in the coming months, and officials will determine the total level of expenditure after considering all applications.
The funding comes from the Chip and Science Act of 2022, which earmarks $39 billion to promote US chip manufacturing and another $11 billion for semiconductor R&D, including the NSTC. In response to these incentives, companies have pledged to invest amounts that exceed government subsidies tenfold.

Industry and government officials warn that without significant investment in labor, new factories may struggle. Some estimates suggest that by 2030, the US will lack 90,000 skilled workers, with the goal of producing at least one-fifth of the world’s most advanced chips.

Since Joe Biden signed the Semiconductor and Science Act over two years ago, more than 50 community colleges have announced new or expanded semiconductor-related projects. 
Biden rushes to avert labor shortage with CHIPS act funding for workers |  Ars Technica
  • The four largest chip manufacturing funding in the United States covers Intel, Taiwan SemiConductor, Samsung Electronics and Micron Technology, and each project includes dedicated workforce funding of $40 million to $50 million.

On Monday, the US Department of Commerce announced the 12th installment of funding for the manufacturing project: $6.7 million to Rogue Valley Microdevices. This funding will be used to support a new factory in Florida dedicated to chip production for defense and biomedical applications.

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US to Fight Labor Shortage With New Chips Act Worker Program
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