Taiwan’s semiconductor industry has long been recognized for its strategic importance on the global stage. While geopolitical wrangling has taken center stage in discussions surrounding Taiwan’s chip industry, there is another significant challenge that the Taiwanese government and its chip industry face – the need to recruit enough chipmakers. The demand for skilled engineers in Taiwan’s chip industry has been growing in recent years, causing a talent shortage that threatens its long-term growth.
According to recent data, there were 27,701 unfulfilled engineer positions in Taiwan’s chip industry in 2021, marking a significant increase of 44 percent compared to the previous year. The situation further worsened in 2022, with 35,167 unfulfilled positions reported in the first quarter alone, a 40 percent surge from the same period in the previous year. Even though there has been a contraction in the global chip market, the talent shortage remains a persistent challenge for Taiwan.
One of the contributing factors to Taiwan’s talent shortage is the declining pool of young talent in the country. Over the past two decades, Taiwan has witnessed a steady reduction in STEM graduates, both at the undergraduate and graduate levels. Additionally, the country’s low fertility rate and aging population further exacerbate the shortage of skilled workers in the chip industry.
Not only does Taiwan face an internal talent shortage, but it also experiences intensified global competition for semiconductor talent. Countries such as the United States, China, South Korea, Japan, and the European Union are ramping up efforts to cultivate domestic talent and attract foreign professionals. This competition increases the risk of an outflow of Taiwanese chip professionals seeking better opportunities abroad, further intensifying Taiwan’s talent shortage.
Furthermore, the recent surge in demand for chips, especially high-end ones used in AI applications, highlights the industry’s need for additional skilled workers to improve productivity. Taiwanese chipmaker TSMC’s projection of 20 percent annual revenue growth exemplifies this growing demand.
Recognizing the urgent need to address the talent shortage, Taiwan’s government has implemented several initiatives to cultivate talent within the semiconductor industry. Previous strategies mainly focused on foreign investment and innovative capability, overlooking talent development. However, in 2021, the government shifted its focus and introduced the “National Key Area Industry-Academia Collaboration and Talent Cultivation Innovation Act.” This act emphasizes industry-academia collaboration in semiconductors and AI, acknowledging the escalating talent shortage due to market demand.
As part of this strategy, nine universities have established new institutes specializing in semiconductors, and university programs in critical areas have been expanded. To support semiconductor talent, the National Science and Technology Council allocated 35 billion Taiwanese dollars for the “2025 Top-Down Semiconductor Plan,” resulting in the generation of hundreds of master’s and PhD-level students each year.
Building on these initiatives, the Taiwanese government unveiled the “Chip-based Industrial Innovation Program (CBI)” in November 2023, with a 10-year plan to provide significant funding for the combination of generative AI and chip technologies. This program aims to foster industrial innovation, attract foreign investment, and create a more conducive environment for international talent.
While these policies are steps in the right direction, they may not be comprehensive enough to fully address the talent shortage. Additional measures can be taken to unlock more talent sources in the market. For instance, the government should invest in pre-college education on semiconductors to cultivate students’ interest in the field from an early age. Furthermore, efforts should be made to encourage more female enrollment in engineering programs to bridge the gender gap in the semiconductor industry.
In conclusion, Taiwan’s semiconductor industry faces the dual challenges of talent shortages and intense global competition. The government’s strategic cultivation initiatives demonstrate a commitment to addressing these challenges, but further steps are needed to unlock additional talent sources. By adopting a nuanced approach that includes investing in education and cultivating a diverse workforce, Taiwan can strengthen its chip industry and maintain its position as a global leader in semiconductor manufacturing.
FAQ Section:
1. What is the talent shortage in Taiwan’s chip industry?
The talent shortage in Taiwan’s chip industry refers to the lack of skilled engineers and professionals needed to meet the growing demand in the industry. There were 27,701 unfulfilled engineer positions in 2021, marking a significant increase of 44 percent compared to the previous year. In the first quarter of 2022 alone, 35,167 unfulfilled positions were reported, a 40 percent surge from the same period in the previous year.
2. What are the contributing factors to Taiwan’s talent shortage?
One contributing factor is the declining pool of young talent in Taiwan, with a reduction in STEM graduates over the past two decades. The country’s low fertility rate and aging population also exacerbate the shortage of skilled workers in the chip industry.
3. How does global competition impact Taiwan’s talent shortage?
Global competition for semiconductor talent, especially from countries like the United States, China, South Korea, Japan, and the European Union, intensifies Taiwan’s talent shortage. The risk of Taiwanese chip professionals seeking better opportunities abroad further increases the shortage.
4. What initiatives has Taiwan’s government implemented to address the talent shortage?
Taiwan’s government has implemented several initiatives, including the “National Key Area Industry-Academia Collaboration and Talent Cultivation Innovation Act.” This act emphasizes industry-academia collaboration in semiconductors and AI. Nine universities have established new institutes specializing in semiconductors, and university programs in critical areas have been expanded. The government has also allocated 35 billion Taiwanese dollars for the “2025 Top-Down Semiconductor Plan” and unveiled the “Chip-based Industrial Innovation Program (CBI)” to provide funding for generative AI and chip technologies.
5. What additional measures can be taken to address the talent shortage?
To address the talent shortage, additional measures can include investing in pre-college education on semiconductors to cultivate students’ interest in the field from an early age. Efforts should also be made to encourage more female enrollment in engineering programs to bridge the gender gap in the semiconductor industry.
Definitions:
1. STEM – Science, technology, engineering, and mathematics.
2. Talent shortage – The lack of skilled workers or professionals in a particular industry or field.
Suggested related links:
– Taiwan.com
– The Economist: Taiwan’s Semiconductor Industry Shows How the World Has Split in Two
– World Bank: China Overview
The source of the article is from the blog mivalle.net.ar