Why Extended Talent Can Breathe New Life Into the U.S. Semiconductor Industry

Semiconductor chips are used in countless electronics that people rely on in their day-to-day lives, from laundry machines to refrigerators and smartphones. The United States currently takes up only 12% of global semiconductor manufacturing capacity, which is 37% lower than the 1990s. In order to help bring the industry back to where it was decades ago and help the U.S. regain its competitive edge, the White House has announced it will fund $52.7 billion through the CHIPS and Science Act of 2022, nearly a quarter of which will go toward research and development and workforce development.

This means that the industry will have a sudden need for highly specialized talent, in addition to quickly reskilling and upskilling existing workers. 

The Semiconductor Industry Will Need to Ramp Up Quickly

With the announcement of the CHIPS act, a number of semiconductor chip manufacturers made plans to build brand new fabrication plants. One facility in Ohio, for example, is planning to create ten thousand jobs and house eight plants; it could potentially become one of the biggest manufacturing sites in the world. 

Such sudden and high demand for talent, especially for an industry that hasn’t been dynamic, will come with complex challenges to overcome. The entire ecosystem will need to be moved to new and different locations, as these skills haven’t been in demand.      

Additionally, the workforce for the semiconductor industry takes many diverse skillsets. This includes skilled blue collar labor, white collar labor, and fab assembly talent. All of these labor pipelines will need to be brought together and need time to replenish as well.

This influx won’t just impact the semiconductor industry. Ancillary businesses are also seeking out the same talent since they support chip manufacturing and design. As a result, offshoring companies, consulting firms and large firms will all be competing against each other. Organizations will need to get ahead of it all in order to stay ahead of the rising worker demand and war for talent. One key differentiator will be strategically leveraging the extended workforce. 

Leaning On The Extended Workforce

For semiconductor companies looking to navigate this ramp-up, the contingent workforce offers an opportunity to expand quickly and with less risk. This workforce is also a great resource for hard-to-find and emerging skill sets, as these individuals frequently gain exposure to the latest systems, processes and technologies as they move between different opportunities and organizations. Contingent workers also help companies remain agile when talent demand is outpacing supply.

Organizations can engage this talent, including freelance talent and independent contractors, by partnering with an Employer of Record (EOR) provider, working through a staffing agency or teaming with a Managed Service Provider (or some combination thereof). Regardless of sourcing channels, optimizing this extended workforce requires a strategic, holistic approach to ensure the program delivers the best talent at the right price.

Learn more about contingent workers and how they bolster organizations.

Forward-thinking Leaders Are Already Planning Around Surging Talent Needs  

Leaders with their hand on the pulse of these pending shifts and complex challenges are leveraging real-time data and AI-powered technologies to drive smarter decisions when venturing into previously untapped talent pools. They are investing in talent intelligence, including the latest labor market data, to find the best extended workforce talent with the right skills across the globe at the most optimal rates.

Some semiconductor organizations are also utilizing non-traditional hiring methods like skills-based hiring, which prioritizes specific skills when hiring versus job titles or education. This provides a number of benefits, including improved talent retention, expanded talent pools, increased diversity and faster fill times.

Forward-thinking leaders in the semiconductor sector are also taking a closer look internally and cross-referencing the skills of workers coming off assignment to find strategic opportunities to reskill and upskill within their own organizations to drive further hiring cost savings. Discover how savvy organizations are evolving their talent strategies amidst challenging labor market conditions in our blog post.

Highly skilled contingent workers will be essential to ramping the semiconductor industry up again. And the sooner organizations realign their talent attraction and retention methods, the faster they can get ahead of it – and their competitors.  

Learn more about how you can unlock the full potential of your contingent workforce to fill gaps and ensure agility when you download our quick start guide. 

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.