In a significant development surrounding the advancement of the semiconductor industry, President Biden has enacted legislation aimed at accelerating the construction of semiconductor fabrication plants in the United States. This new law, referred to as the Building Chips in America Act, was signed in October and exempts semiconductor projects from reviews typically required under the National Environmental Policy Act. The move comes as early production yields from Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona demonstrate promising results.
Despite the legislative push, industry leaders are raising concerns about the United States' ability to sustain semiconductor manufacturing without a robust, skilled workforce. A prominent figure in the industry, TSMC founder Morris Chang, highlighted this issue during a symposium in April 2021, stating that while the U.S. offered attractive factors such as affordable land and electricity, the challenge of finding competent technicians and workers in Arizona was pronounced. Chang remarked that manufacturing jobs have not been popular among Americans for several decades, indicating a long-standing staffing challenge.
The Semiconductor Industry Association is also sounding the alarm, forecasting a shortfall of over 40,000 skilled workers in engineering, computer science, and other high-skill chipmaking roles by the year 2030. While it is projected that the U.S. education system could eventually generate a sufficient labour supply if demand remains high, the immediate necessity for skilled workers is urgent. Industry insiders argue that attracting high-skill immigrants is essential to support U.S. semiconductor manufacturing and mitigate risks within the semiconductor supply chain, particularly given geopolitical tensions with China.
To address the workforce gap, proposals have been made for a new immigration category specifically designed for semiconductor industry workers. The Economic Innovation Group put forth an idea for “Chipmaker’s Visas,” suggesting these could be auctioned to firms in need of experienced foreign workers in specialised fields.
The discussion around potential immigration reform is underscored by the bipartisan appeal displayed during the recent legislative efforts concerning the semiconductor industry. As experts have suggested, the argument for a targeted immigration reform aligns with the extensive consensus among lawmakers acknowledging semiconductor manufacturing as a critical national interest. Many legislators could likely support a narrow adjustment to immigration laws to further the aims of the CHIPS Act, despite concerns about preferential treatment for specific sectors.
In addressing existing immigration pathways, Jeremy Neufeld, a senior fellow at the Institute for Progress, noted that there are untapped opportunities within current immigration laws that could effectively address workforce shortages. One example he cited is the Schedule A pre-certified employment category under the Immigration and Nationality Act of 1965. This category was designed to ensure that foreign workers do not displace qualified American workers in specific occupational categories like engineering and physics. However, the Secretary of Labor has not updated the occupational categories since 1991.
Neufeld also suggested that expanding visa opportunities for workers affiliated with American universities could help companies attract talent to key regions critical for semiconductor production. Moreover, revisions to the J-1 exchange visitor visa programme are suggested, to alleviate some of the restrictions preventing high-skilled exchange visitors from working in the U.S. for extended periods.
The CHIPS Act emerged from concerns over a pandemic-induced chip shortage that disrupted American manufacturing, as well as escalating tensions with China, particularly regarding Taiwan's semiconductor dominance. The focusing of American industrial policy towards semiconductor technology is seen as a necessary measure to fortify the U.S. chip supply chain. However, without a substantial influx of skilled workers, experts warn that the hoped-for transformation may fall short, as TSMC and other companies might prefer to maintain their centres of innovation in locations with more established talent pools.
As the U.S. accelerates its investments in the semiconductor sector, the industry’s ability to attract and retain the world’s best talent will be pivotal for its future prospects and its role in the global semiconductor landscape.
Source: Noah Wire Services