Top 5 Hiring Challenges Facing the Semiconductor Industry in 2024 and Strategies for Success

In a recent press release, Gartner, Inc. has forecasted a remarkable turnaround for the global semiconductor industry in 2024, anticipating a robust 16.8% growth that will propel the revenue to an impressive $624 billion. 

Alan Priestley, VP Analyst at Gartner, notes that the strong demand for chips to support artificial intelligence (AI) workloads, particularly graphics processing units (GPUs), will be instrumental in this resurgence. 

In the wake of the semiconductor industry’s anticipated growth in 2024, there is a pressing need for skilled manpower to drive and sustain this expansion. However, as the demand for semiconductors surges, so do the challenges in finding and retaining qualified professionals.

Taggd’s Decoding Jobs 2024 Report indicates that India’s hiring landscape is poised for growth in 2024, with an overall hiring intent showing a notable increase of 19% compared to the previous year. Considering these factors, addressing the challenges in hiring becomes crucial.

In this article, we look into the top 5 hiring challenges confronting the semiconductor industry in 2024 and propose strategic solutions to address these issues.

At the forefront of hiring challenges is the acute skills gap within the semiconductor industry. The demand for a unique blend of engineering, physics, and computer science skills far outstrips the current supply. The industry’s specialized nature and the absence of these skills in traditional engineering programs contribute to this deficit.

The global semiconductor industry, with revenues surpassing $550 billion in 2021, is poised to undergo a remarkable 80% growth, reaching over a trillion dollars by 2030.

Despite the industry’s stellar performance, the Semiconductor Industry Association predicts a shortage of skilled workforce, requiring an additional 1 million professionals in the semiconductor industry by 2030. 

In the fierce battle for STEM talent, the semiconductor industry faces formidable competition from established tech giants and emerging players in AI, robotics, and autonomous vehicles.

To successfully tackle this challenge, the semiconductor industry can attract and retain top minds by highlighting its long-term impact, stability, diverse career paths, and collaborative culture, all while building public awareness through creative outreach and fostering partnerships for a thriving future of technology.

The Need for Diversity

According to a report by the Global Semiconductor Alliance, the share of men has traditionally been higher in the semiconductor industry. However, rectifying this lack of diversity is crucial as numerous studies indicate that companies encouraging women’s participation not only have a higher innovation quotient but also display better revenues. 

Moreover, the workforce of today wants to work in an environment that promotes and supports diversity and flexibility. Therefore, to attract and retain top talent, semiconductor companies must actively work towards a more diverse and inclusive workforce.

The Changing Nature of Work

The workplace landscape is evolving rapidly, and the semiconductor industry must adapt its hiring practices accordingly. Given the research-oriented nature of the industry, the rise of remote and hybrid work models adds another layer of complexity to talent acquisition.

Global Competition

As a global industry, semiconductor companies face fierce international competition for skilled workers. The need to draw talent from diverse geographical locations intensifies the hiring challenge. Having said that, the ongoing trade war between the United States and China poses another challenge for the semiconductor industry.

Proactively Addressing the Skills Gap Through Training & Collaborations

“Open collaboration and partnership are the keys to driving progress and innovation.” – Jensen Huang, CEO, NVIDIA

Companies must proactively invest in comprehensive training programs to address the critical skills gap in the semiconductor industry. These initiatives are vital for developing a workforce with the specialized skills the industry demands. 

By emphasizing internal talent development, companies can establish a dependable pipeline of skilled professionals, ensuring they are well-equipped to meet the evolving demands of the semiconductor landscape. 

Collaboration with educational institutions, engineering colleges, and universities is essential, especially with fewer students enrolling annually in engineering in India. This industry-wide engagement with diverse educational pathways is crucial to broaden the talent pool and ensure a resilient workforce capable of driving innovation in this rapidly evolving sector.

The Decoding Jobs 2024 Report, however, highlights a positive trend in the availability of talent in the semiconductor industry. There is an increasing pool of skilled professionals in solutions-related roles, indicating a potential resource for semiconductor companies.

Given the global nature of the semiconductor industry, the report suggests that companies establish partnerships with universities and colleges worldwide. This approach can help semiconductor companies tap into a broader pool of STEM graduates. A global talent acquisition strategy and cross-border collaboration can mitigate the impact of geographical constraints.

Enhancing Work Culture + Offering Competitive Compensation

Staying ahead of the competition involves financial incentives and creating a workplace culture that fosters innovation and creativity. Providing unique opportunities for professional growth and development can set semiconductor companies apart.

The report underscores a surge in demand for specialized roles within the semiconductor sector. Specifically, roles related to artificial intelligence (AI) workloads, including graphics processing units (GPUs), are expected to be in high demand. This also aligns with the industry’s focus on supporting AI-driven applications.

Supporting Diversity Through Dedicated Hiring Efforts

Everyone in the semiconductor industry, everyone in the technology industry, would benefit from more diversity in the business – Lisa Su, CEO of AMD

A proactive approach towards diversity and inclusion includes targeted recruitment efforts, mentorship programs, and fostering an environment where employees from all backgrounds feel valued and supported. Mentorship programs are also important, as they guide and support people who may not have had as many opportunities in the past.

The report points out that semiconductor companies face competition from both within their industry and from tech giants. This emphasizes the need for semiconductor companies to offer competitive salaries and benefits to attract and retain top-tier professionals.

Improve the Workplace to Meet Changing Employee Preferences & Needs

To meet the changing expectations of the workforce, semiconductor companies can embrace flexible work arrangements, leverage advanced communication technologies, and redefine traditional hiring models to accommodate remote and hybrid work environments.

The report acknowledges the evolving nature of work, especially considering the impact of the COVID-19 pandemic. This aligns with the changing expectations of the workforce.

The semiconductor industry is poised to grow rapidly as countries worldwide increase their focus on establishing independent supply chains for semiconductors. Staying updated with key trends and factors impacting talent acquisition in this space is crucial for recruitment decision-makers to strategize and hire without major hiccups.

Taggd’s India Decoding Jobs Report 2024 covers key aspects affecting the semiconductor industry and provides the latest insights and trends that are used by leading corporates across India to plan their recruitment strategies.

The comprehensive report has been crafted through meticulous surveys and in-depth discussions with esteemed professionals in talent acquisition across diverse sectors in India. It has transformed into a highly regarded repository of data and recommendations, serving as an invaluable tool for steering recruitment decision-making processes.

To download your exclusive copy of the report, click here or write to us at contact@taggd.in.