Electrical Engineer Shortage from Asia to the US

The electronics sector dominates the world. It touches almost every aspect of our lives, from the devices we use daily to the infrastructure that keeps our society running. Electronics engineers are the heroes who keep our lives running smoothly. So it's no surprise that electrical engineers play an essential role in our sector, developing and perfecting the products and systems we all depend on. However, the electronics market is becoming increasingly constrained for a variety of reasons. For starters, graduates are still shifting away from hardware and toward computer science and software engineering. Let's go over some key takeaways.

• The shortage of electrical engineers in Asia is a growing problem with far-reaching consequences.
• Several of the world's largest electronics companies are based in Asia, and a shortage of engineers could disrupt the global electronics industry.
• The shortage is most acute in Asia, where demand for electronic goods has skyrocketed in recent years.
• With the U.S. Chip and Science Act, the situation could worsen.

As my newsletter reaches electrical engineering colleagues and professionals in similar or related fields worldwide, I hope you will be informed and join me in raising awareness of the causes and consequences of shortages.

The Causes of the Electrical Engineer Shortage in Asia?

The shortage of electrical engineers in Asia is due to several factors. First, demand for electronics has skyrocketed due to the rapid growth of the cell phone and tablet markets. This surge in demand has put pressure on electronics companies struggling to keep up with consumer demand. Second, older engineers are retiring at a different rate than younger engineers. As a result of the long hours and high pressure associated with engineering, many young people are choosing to pursue other careers, negatively impacting the region's economy as companies outsource engineering needs.

Another important reason could be the outflow of highly skilled workers, who migrate to other countries where they find higher salaries and better working conditions. This is a significant problem in Asia, where many electrical engineers migrate to work elsewhere. This exodus exacerbates the already severe shortage of engineers in Asia. Not only does this mean fewer people available for essential infrastructure projects, but it also means that Asian economies will have to do without these workers' valuable skills and knowledge. The brain drain is a severe problem that industries must address if Asia is to improve its infrastructure and economy.

In Japan: "the last and biggest chance ..."

The Japanese semiconductor industry is critical to the Japanese economy, and its decline has been a cause for concern in recent years. The Japan Electronics and Information Technology Industries Association said the five years to 2030 are "the last and biggest chance for Japan's semiconductor industry to regain its footing" after years of losing global market share. The group called on the government to increase investment in the sector and take further support measures. The Ministry of Economy, Trade, and Industry said it would put together a package of measures to support the sector. Japan has long been a world leader in electronics manufacturing and must maintain this tradition. The main points of the call are, [1]

• From Toshiba to Sony, Japan's largest chipmakers warn that a shortage of engineers threatens the government's efforts to revive the domestic chip industry.
• Japan is currently facing a shortage of skilled engineers as the country tries to bolster its semiconductor sector, which the Covid-19 supply disruptions have weakened.
• The Japan Electronics and Information Technology Industries Association (JEITA) estimates that eight major manufacturers will need to hire about 35,000 engineers over the next decade to keep up with the pace of investment.
• Although Japan was once the leading manufacturer of semiconductors, it eventually ceded its supremacy to companies in South Korea, Taiwan, and China, leading to mass layoffs in the industry after the 2008 global financial crisis - a loss of talent from which Japan has never recovered, according to Wakabayashi.

In the U.S.: Government incentivizes workforce development

The shortage of electrical engineers is also affecting the U.S. electronics industry. Unfortunately, the situation is unlikely to improve in the foreseeable future, as the number of engineering graduates in the U.S. has stagnated for several years.?

• U.S. companies need help hiring qualified engineers, resulting in delays in product development and higher production costs.
• It is unlikely to improve in the near future, as the U.S. engineering graduate population has stagnated for several years.
• As a result, U.S. companies are increasingly turning to Asia to meet their engineering needs. According to some estimates, at least 50,000 new semiconductor engineers will be needed in the U.S. over the next five years to fill all new manufacturing facilities and research labs.
• Many attributes this shortage to the lack of undergraduate education, inadequate funding for the field, and declining interest.
• According to Purdue, companies plan to build manufacturing facilities using Chip and Science Act subsidies - a number far exceeds the country's current graduation rates.

However, there have been recent efforts to address this problem. For example, chip companies are working with Purdue College, one of the largest engineering schools in the country, to ensure that students gain expertise in these fields. In addition, adequate funding for technical and scientific programs is now essential to ensure that these fields can attract and retain the best and brightest talent. [2]

What is the Chip and Science Act?

The Act invests $280 billion to expand U.S. semiconductor capacity, promote research and development, create regional high-tech hubs, and create a larger, more inclusive workforce STEM. On August 9, 2022, President Biden signed the highly anticipated CHIPS Act of 2022 (the "the CHIPS Act"). The Act, portrayed as critical to ensuring U.S. leadership in global chip manufacturing and technical capability against the backdrop of a rising China, aims to promote domestic semiconductor manufacturing in the United States, among workforce development. According to McKinsey's report on the Act,

• The bill also earmarks billions of dollars for federal research and development and regional startups that the government hopes will make commercial breakthroughs in new areas such as quantum computing and artificial intelligence.
• The funds allocated for the subsidies come from an acute shortage of computer chips worldwide. This is caused by rapidly rising demand and a need for more investors willing to build the multibillion-dollar factories needed to manufacture the components.
• To counter China, some Republicans are abandoning free market orthodoxy. Federal funds will only solve this shortage in the short term. Still, they'll provide incentives for major construction projects by Intel, Taiwan Semiconductor Manufacturing Company (TSMC), Micron, GlobalFoundries, and others to build chip fabs in the coming years. [3][4]

The Consequences of the Electrical Engineer Shortage

The impact of the shortage of electrical engineers extends beyond the electronics industry. With many countries now reliant on electronic goods, the shortage could also impact the global economy.?

• For companies, the shortage of electrical engineers means that projects take longer and costs increase, even though their main goal is to bring new products to market quickly enough to meet consumer demand. This has led to declining profits and increased competition with companies that can work faster.
• This can mean longer wait times for repairs and new products for consumers. And for society, it can mean that innovation and progress slow down.?
• Another consequence is that infrastructure projects are delayed or canceled because of a lack of qualified engineers.

So the shortage of electrical engineers significantly impacts the economy and our way of life. In addition, the brain drain leads to a decline in innovation among Asian electronics companies.

Conclusion:

The shortage of electrical engineers seriously affects electronics companies from Asia to the United States and the global electronics market. Increasing public awareness of the importance of engineering and science can help more students choose these subjects and provide opportunities for students to pursue internships and gain industry experience. We also need to better support and educate those working in the field. All the research conducted in writing this article points to one clear answer that runs through all areas: These measures are the only way to meet future challenges.

BECS' primary business is providing professional, high-quality, outsourced electronics design and development services that help companies address their engineering shortages. Don't hesitate to contact us if you need assistance to help your team achieve your goals more effectively. We will be happy to explain our service offerings, which many leading companies have been using for over a decade. Visit www.becscorp.com to learn more, or reach out to us on #LinkedIn.