Texas Leads American Semiconductor Manufacturing Resurgence

Many younger people who grew up with computers believe that advanced electronics, powered by integrated circuits more commonly known as semiconductors, have mostly been the specialty of Asian countries, like China, Japan, and Taiwan.

Some might be surprised to learn that the first semiconductors were developed by engineers in the United States. Indeed, semiconductor manufacturing was dominated by the U.S. for decades, with Texas Instruments and other Texas manufacturers leading the way.

Lately, however, other countries, including the Asian countries mentioned above, have surpassed the U.S. in producing the most advanced semiconductors. This trend became big news during the COVID-19 pandemic, when already-strained supply chain issues were made worse by the inability of American manufacturers to get their hands on semiconductors produced overseas to finish their products.

These pandemic-related issues were a wake-up call to manufacturers and government officials, who realized that something needed to be done to bring back the domestic semiconductor manufacturing sector. Fortunately, it did not take long for a response.

The federal government passed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act (“CHIPS Act”) during the summer of 2022. According to McKinsey & Company, the CHIPS Act was intended “to jumpstart American competitiveness in the semiconductor?industry and reduce dependence on foreign suppliers” in the wake of the supply chain disruptions caused by the COVID-19 pandemic.

Has the CHIPS Act succeeded? Many would argue it certainly has, although semiconductor manufacturing plants (often called “chip fabs”) don’t pop up overnight. Their advanced technologies require exacting construction standards to be met, so it can be a while between when a new chip fab is announced and when it begins operations. However, there is good reason for optimism for the American semiconductor manufacturing industry.

In a recent Texas Standard article, author Shelly Brisbin recaps the “concerted effort to bring chipmaking back to the U.S.” and notes that “a lot of it is happening in Texas.” At a time when partisanship within the government makes it difficult to accomplish much of anything, “boosting the domestic semiconductor industry” seems to be an issue that “[e]lected officials from both political parties have gotten behind.”

Indeed, both sides of the political aisle agree “that funding more domestic manufacturing will bring jobs and stability for the U.S.” and “they’ve all gotten behind offering incentives and grants to domestic and even foreign chipmakers to build or expand semiconductor operations here in the U.S.”

For example, South Korean semiconductor giant Samsung has received a $6 billion grant “to build at least two semiconductor fabrication plants, a packaging facility and a design center in Taylor, [Texas,] for a?total investment of $45 billion.” The Taylor complex will complement the facilities in nearby Austin, which is already home to a Samsung chip fab.

Brisbin notes that the new Samsung facilities are not the only investments being made in Texas. In addition, “there are five Texas projects planned, including a $30 billion Texas Instruments facility in Sherman.”

All of this sounds like great news until you realize that these new manufacturing facilities will need one thing that’s in relatively rare supply these days: highly skilled workers. The manufacturing sector has been facing a skills gap issue for years now. As a result, there are currently more open manufacturing positions than there are skilled workers, and that problem is only going to get worse as new chip fabs come online.

Experts estimate that as many as 115,000 new semiconductor jobs could be created in the U.S. in the years to come, with a significant percentage of those coming to Texas. Fortunately, Texas state legislators have been proactive in supporting investment in semiconductor manufacturing at the state level. For an in-depth look at the things Texas has done, check out the Texas Semiconductor Leadership page on the Texas Economic Development & Tourism website.

Creating a pipeline of highly skilled workers for new semiconductor manufacturing facilities will require a coordinated effort between industry and educational institutions. Some of that work has already begun with universities, such as Texas A&M University, and community colleges, such as Austin Community College, leading the way.

For those interested in establishing a pipeline of skilled talent for future chip fabs, the task of training the next generation of semiconductor technicians might seem like a daunting challenge. Fortunately, educational institutions and industry partners don’t need to recreate the wheel.

Amatrol’s unique combination of real industrial training equipment paired with cutting-edge eLearning curriculum can be used to create a modern semiconductor technician training program that will set up students for success.

With over 30 years of experience, Amatrol remains the world’s leader in technical education. The experts at Amatrol regularly guide educational institutions and industry clients through the process of customizing training programs to achieve specific goals.

For more information about how Amatrol can help you inspire and train the next generation of semiconductor manufacturing workers, visit the Amatrol website to download the Amatrol 2024 Semiconductor Manufacturing Career Playbook.