Semiconductor Monthly | July 23

This edition of Semiconductor Monthly focuses on our favourite headlines in the month of July and a heavy focus on the talent shortage. We give our thoughts on how to tackle it and what the barriers could be.

Foxconn and Vedanta to Part Ways on $19.5bn Semiconductor Plan

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In a turn of events, Foxconn, a Taiwan semiconductor company, has pulled out of a multibillion-dollar plan with Vedanta, an Indian metals-to-oil company, to build semiconductor fabrication plants in India. After working on the project for one year, the two companies have stated a mutual agreement to part ways and Vedanta to take over sole project ownership for the chip plant.

Vedanta has stated its full commitment to the project, with new project partners in mind to help fulfil the plan. This, however, has given Vedanta a negative public image and could deter future partners and investments, highlighting the difficulty of entering the market where established firms dominate with intricate systems and supply chains.

Germany Plans Staggering €20bn in Subsidies for Semiconductors

Germany has its eyes set on ramping up its domestic semiconductor industry with plans to invest €20bn by 2030. Subsidies of this size help to attract foreign investment from global chipmakers. We have already seen GlobalFoundries expand operations within Dresden, Infineon take on a €5bn investment to build a semiconductor fab with aims to start production in 2026, TSMC expresses their interest to build a fabrication plant in Dresden and Intel s plan to build and develop two fabrication plants in Magdeburg, an investment upwards of €30bn.

Industry analysts have suggested Intel will receive €10bn in subsidies from the German government, with the other half of subsidies spread across Infineon, GlobalFoundries, and TSMC. Semiconductor Giant TSMC owns a majority share in the global semiconductor market, close to 60%, and could see a significant chunk of the remaining €10bn subsidy, analysts predict.

Major delay to Arizona chip production start by TSMC

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TSMC has collided with one of the industry’s biggest hindrances to growth: the talent shortage. The chip giant announced the project to build fabs in Arizona in 2020, and again in 2022. Production was initially planned to start in 2024 and has now been delayed to 2025. The extra 12 months are to secure the necessary talent needed to fill the roles within the fabrication plant. Without these skilled workers, the TSMC plant would be incapable of fulfilling production targets.

The end of Q1 has seen TSMC report a 23% decrease in net profit, its first year-on-year decrease since 2019. The talent shortage is significant across the industry and has resulted in TSMC sending skilled workers from Taiwan to train local skilled workers to help combat the shortage.

Semiconductor Education Alliance launched by Arm and Cross-Industry Partners

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The semiconductor industry is at the forefront of all current and future technological development, and its strategic importance has gained increased recognition, creating plans across the globe to fortify both global and domestic markets with billions worth of investment. Research and design, manufacturing, marketing, and distribution are all areas receiving investment. However, with the drive for innovation and growth, one major issue has arisen: the talent shortage. Industry experts predict this shortage could amount to more than 60,000 skilled workers by 2030.

Arm has partnered with several cross-industry/academia institutions to help combat this shortage, named the Semiconductor Education Alliance (SEA). This alliance includes:

·?????Arduino

·?????Cadence

·?????Cornell University

·?????The Semiconductor Research Consortium

·?????STMicroelectronics

·?????Synopsys

·?????Taiwan Semiconductor Research Institute

·?????The All-India Council for Technical Education

·?????The University of Southampton

This global initiative is bringing together key stakeholders including market-leading companies, academic institutions and governments to address and combat the issues that the industry is facing. By collaborating, the SEA will be able to provide support across the entire industry, from education to expansion.

Semiconductor Talent Shortage: How Diverse Talent Can Help

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One of the most notable ways the semiconductor industry can address the talent shortage is by ensuring that recruitment efforts are as inclusive as possible. A huge body of research shows that diverse workforces foster a culture of innovation and creativity. Diverse perspectives and experiences lead to fresh ideas, problem-solving approaches, and out-of-the-box thinking, all of which are crucial for an industry like ours.

To combat the shortage, there are several strategies that semiconductor companies can adopt that prioritise diversity and inclusion ranging from recruitment to job requirements.

1.????Widening Recruitment Efforts & Sources

Companies can expand their reach by actively seeking candidates from diverse backgrounds, including underrepresented groups. By partnering with diverse organizations and educational institutions, they can tap into talent pipelines that were previously overlooked.

2.????Creating Inclusive Job Descriptions & Requirements

Companies should carefully craft job descriptions to attract a broader range of candidates. Avoiding gendered or biased language and focusing on essential skills and qualifications can help create a more inclusive hiring process and eliminate the possibility of some candidates not applying for roles as a result of gendered language.

3.????Establishing Partnerships

Collaborating with organizations and institutions that focus on promoting diversity in STEM fields can provide access to a more diverse talent pool. Building strong partnerships can lead to mutual benefits and ultimately help overcome the talent shortage.

Barriers & Challenges in Attracting & Retaining Diverse Talent

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Attracting and retaining diverse talent in the semiconductor industry can be challenging due to several barriers and obstacles.

1.????Lack of Representation & Inclusion

The underrepresentation of certain demographics, such as women and minority groups, in the semiconductor industry, creates a barrier to attracting diverse talent. The lack of visible role models and mentors can discourage individuals from pursuing careers in the field.

2.????Unconscious Bias & Stereotypes

Unconscious bias can influence hiring decisions and contribute to the perpetuation of stereotypes. Assumptions about certain groups' abilities or interests may hinder opportunities for diverse talent to enter and thrive in the industry.

3.????Limited Outreach & Recruitment Efforts

Inadequate outreach and recruitment strategies aimed at diverse communities can result in a limited pool of diverse candidates. Companies need to actively engage with diverse educational institutions, communities, and organisations to expand their talent pipeline.

4.????Inclusive Workplace Culture

A lack of inclusivity and non-diverse workplace culture can create an unwelcoming environment for underrepresented groups. Companies must foster an inclusive culture that values diversity, provides equal opportunities, and supports the growth and advancement of all employees.

Our final thoughts

The talent shortage in the semiconductor industry is an issue that we all need to address, from multiple angles with various solutions. By actively seeking diverse talent, fostering an inclusive culture, and implementing best practices, companies can tap into untapped potential, drive innovation, and secure a competitive edge in the industry. Embracing diversity is not only the right thing to do but also a strategic imperative for the long-term success and sustainability of the semiconductor industry.

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