McKinsey and SEMI Forecast U.S. Chip Shortfall of Up to 157,000 Workers

America’s drive to make more advanced chips at home is running into a constraint that money and construction cannot quickly solve: skilled people. McKinsey and the SEMI Foundation project the U.S. semiconductor industry could be short as many as 157,000 workers by 2030, as manufacturers bring new capacity online.

The forecast arrives as companies including Samsung, TSMC, Micron, Intel and SK Hynix expand U.S. operations. The immediate problem is staffing fabrication plants, or fabs, which need engineers and technicians alongside supply-chain workers. Samsung’s two planned fabs in Taylor, Texas, are part of a $35 billion buildout expected to create about 3,500 jobs.

Samsung semiconductor executive Jon Taylor said the company does not see enough technical people in the U.S. pipeline. TSMC, meanwhile, plans to fill roughly 6,000 roles across its first three Arizona fabs through university outreach, internships and a technician-training program.

A thin domestic pipeline

The mismatch begins before hiring. McKinsey says only 3% of U.S. graduates who take engineering jobs enter the semiconductor industry each year. It also found that 73% of chip employers report significant difficulty filling engineering roles.

Up to 157,000Projected skilled-worker gap by 2030

McKinsey and the SEMI Foundation project a U.S. semiconductor workforce shortfall of up to 157,000 skilled workers by 2030.

3%Engineering graduates entering chips

McKinsey estimates that 3% of U.S. graduates who enter engineering roles go into the semiconductor industry each year.

73%Employers struggling to fill engineering roles

According to McKinsey, 73% of chip employers report significant difficulty filling engineering roles.

A stopgap from Asia, a longer-term bet on schools

For the factories opening now, companies are leaning on experience concentrated overseas. Samsung and SK Hynix told CNBC they are temporarily bringing South Korean workers to the U.S. to help start facilities. Samsung has also sent U.S. employees to South Korea for hands-on training, following a similar earlier move by TSMC during construction of its first Arizona fabs.

That approach can transfer know-how into new plants, but it does not create a large U.S. labor pool on its own. Bringing foreign talent to the U.S. on H-1B visas has become costly and cumbersome, while Micron has been recruiting at technical universities in South Korea, where semiconductor talent pipelines are stronger.

The domestic pipeline taking shape

• Purdue launched semiconductor degrees in 2022 and has about 2,500 students enrolled in chip-related courses each semester. Its nanotechnology center trains students on equipment similar to that used in chip manufacturing.
• Arizona State converted an old Motorola fab into a cleanroom facility and added a center backed by a $200 million contribution from Applied Materials. TSMC runs a technician program there that guarantees an interview upon completion.
• More than 80 community colleges have launched or expanded semiconductor programs since the 2022 CHIPS Act, supported in part by a $200 million federal workforce fund.

Hiring is becoming part of the capacity race

The education investments point to a longer-term answer, but factories need trained staff before those programs can fully mature. Taylor described the competition as a race against time: every company coming online is seeking many of the same specialists. The test for the U.S. buildout is whether training, recruitment and temporary overseas support can keep pace with the plants they are meant to operate.