A dearth of skilled workers in Taiwan could exacerbate the chip shortage

midian182

Posts: 7,902   +82
Staff member
In context: It appears that another factor has joined the list of ‘reasons why the chip shortage is seemingly unending.’ This one is pretty simple: there aren’t enough skilled people to fill employment gaps within Taiwan’s semiconductor industry.

In addition to the massive discrepancy between supply and demand brought about by the pandemic, chip shortage issues have been exacerbated by (deep breath) high crypto prices, reduced silicon output, a copper foil shortage, a lack of components, shipping delays, aluminum disruption, droughts, lockdowns, and more.

We’d previously heard that chipmakers and electronics makers had encountered another problem: there aren’t enough skilled workers to fill the required positions. Now, Nikkei Asia reports that this issue is especially prevalent in Taiwan, home of TSMC and where 90% of the world’s most advanced chips are made. The publication writes that the need for more engineering talent is increasing as the pool of graduates shrinks.

Taiwan, which has a population of 23.4 million, had over 30,000 chip-related vacancies during Q4 2022, up 77% compared to Q2 2020. The country’s industry had more than 290,000 employees as of the end of last year, up from 225,000 two years previously.

At the same time, Taiwan’s STEM graduates fell to 92,000 in 2019 from 116,000 in 2011. Additionally, death rates in the country have been outnumbering birth rates in recent years, resulting in a declining population.

There are over 2,000 jobs currently open in Taiwan from both US and local chip companies. "The shortage of high-end chip talent will pose challenges to the overall development of the semiconductor industry for the future," said Tsai Ming-kai, chairman of MediaTek.

While that’s good news for Taiwanese graduates who are headhunted for jobs and can command huge salaries, it’s yet another problem on the long list of issues extending the chip crisis.

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Uncle Al

Posts: 8,761   +7,672
There aren’t enough skilled people to fill employment gaps within Taiwan’s semiconductor industry.

Industries in the US know (or used to know) that you have to develop and invest in education programs to keep that pipeline of skilled employee's ever coming. Those that choose to rely upon local education or don't invest in future work forces are causing their own problems ....
 

Nintenboy01

Posts: 217   +174
There aren’t enough skilled people to fill employment gaps within Taiwan’s semiconductor industry.

Industries in the US know (or used to know) that you have to develop and invest in education programs to keep that pipeline of skilled employee's ever coming. Those that choose to rely upon local education or don't invest in future work forces are causing their own problems ....
the world seems to be progressing towards "dumbification". Ironically improving technology and the internet may have contributed to this.
 

Dimitriid

Posts: 2,209   +4,246
It appears that another factor has joined the list of ‘reasons why the chip shortage is seemingly unending.

At this point it's probably more accurate to say "Excuses semiconductor companies use to continue their price fixing"
 

BadThad

Posts: 1,039   +1,193
Just wait until the communists follow Russia's lead and invade. We haven't seen anything yet as far as chip shortages. The failures of America's 2020 ineptocracy wreaking havoc worldwide!
 
The microcosm always grows because it is the perfect exemplar of Say’s Law, the first useful thing we ever learned from an economist. Say turns everything you ever learned about “mismatches” in supply and demand on its head. His law tells us supply creates its own demand.

We have seen Say’s law at work ever since the early days of the transistor at Texas Instruments in the 1950’s and Intel’s invention of the microprocessor in the early ‘70’s. The more and cheaper supply of circuits the more can be done with them and the greater the demand.

That’s the true story of the great chip shortage of 2021. And that is glorious news, indeed!