The CHIPS Act Two Years In: Navigating the Race to Train the Next Generation of Semiconductor Workers

Two years after President Joe Biden signed the CHIPS and Science Act into law, a critical focus has emerged in the U.S. semiconductor industry: training the next generation of workers. As chip factories sprout from Syracuse, New York, to Phoenix, Arizona, the challenge of filling these high-tech roles has intensified, with efforts like Purdue University’s STARS program leading the charge.

Building the Workforce of Tomorrow

The CHIPS Act, which authorized nearly $53 billion to revitalize the U.S. semiconductor sector, has spurred significant investments in domestic chip manufacturing. However, with a predicted shortfall of up to 146,000 workers by 2029, there is an urgent need to expand training and educational initiatives. McKinsey & Co. highlights that despite the funding and support from the CHIPS Act, the U.S. chip industry’s workforce has dwindled from a peak of 714,500 in 2001 to 392,100 as of mid-2024.

One of the key programs addressing this gap is Purdue University’s Summer Training on Awareness and Readiness for Semiconductors (STARS). This initiative, which concluded its second summer with 100 students, provides undergraduates with hands-on experience in semiconductor design, manufacturing, and packaging. Participants, like rising sophomore Robert Zhang, benefit from a $10,000 stipend funded by industry giants such as Intel and GlobalFoundries. Zhang and his peers gain rare, practical experience in “clean rooms” and labs, preparing them for future careers in the sector.

A Broader Talent Strategy

The need for a broad and strategic approach to workforce development is evident. Purdue’s STARS program is just one part of a larger effort. Mark Lundstrom, Purdue’s chief semiconductor officer, emphasizes the importance of early engagement with students. Many existing internships occur too late in students’ academic careers. By involving undergraduates in semiconductor processes before their junior year, universities can better prepare them for roles in upcoming facilities, like South Korean company SK Hynix’s advanced packaging plant in West Lafayette, Indiana.

Sujai Shivakumar from the Center for Strategic and International Studies points out that the industry must collaborate with universities, nonprofits, and governments to address the talent shortage effectively. Offering competitive wages, child care benefits, and flexible hours will be crucial for retaining domestic talent and preventing it from moving abroad.

Expanding the Talent Pool

To tackle the talent gap, McKinsey & Co. proposes several strategies, including tapping into immigrant communities, military veterans, and workers from adjacent industries such as pharmaceuticals and automotive manufacturing. Building partnerships between educational institutions and chipmaking facilities—starting as early as high school—can also help bridge the skills gap.

Taylor Roundtree from McKinsey emphasizes that merely offering courses isn’t enough; engaging students and guiding them towards relevant career paths is essential. Purdue’s efforts are a step in the right direction, but they represent only a small piece of the puzzle.

Looking Ahead

As the U.S. semiconductor industry continues to grow, the focus on workforce development will remain crucial. The success of programs like STARS and broader industry initiatives will play a significant role in meeting the workforce needs and ensuring that the domestic semiconductor sector can thrive. The ongoing efforts to train and prepare the next generation of workers are vital for the long-term success of the industry, driving innovation and maintaining the U.S.’s competitive edge in global chip manufacturing.

The CHIPS Act has set the stage for a resurgence in U.S. semiconductor production, but realizing its full potential will depend on successfully addressing the workforce challenges. With collaborative efforts and strategic investments, the U.S. can build a robust talent pipeline to support its growing chip industry and secure its position as a leader in semiconductor technology.