How Semiconductor Companies Can Overcome Labor Shortages
The global semiconductor industry is surging into 2025, with chip sales projected to reach $697 billion—a 19% increase from 2024 (Deloitte, 2025 Semiconductor Industry Outlook). But behind this growth lies a critical challenge: a widening labor shortage that threatens to disrupt production and delay innovation.
In the U.S. alone, the semiconductor industry needs 67,000 additional workers by 2030, yet more than 58% of these roles risk going unfilled without action (SIA/Oxford Economics, Chipping Away, July 2023). Meanwhile, escalating geopolitical pressures—such as tightened U.S.-China export controls in December 2024—have only intensified the urgency to build a strong, skilled domestic workforce.
At Primacy Careers, we've identified proven, data-backed strategies to help semiconductor companies close these critical labor gaps—because powering the chip boom starts with powering the people behind it.
Why Labor Shortages Are a 2025 Crisis for Semiconductors
Since the CHIPS Act passed in 2022, U.S. semiconductor investments have skyrocketed to $447 billion across 85+ projects (SIA, Dec 2024). But while funding and facilities grow, the workforce has not kept pace.
McKinsey warns that new fabs—such as TSMC’s $40 billion Arizona facility—could face a shortage of 1,500 technicians by Q4 2025 if hiring trends continue (McKinsey, Reimagining Labor, Aug 2024). Meanwhile, 40% of the current 345,000 U.S. semiconductor workers are over 45, nearing retirement by 2030 (SIA, 2023).
With AI chip demand up 35% year-over-year (KPMG, 2025 Outlook, Dec 2024), the industry faces a workforce crisis that requires immediate, innovative solutions.
5 Research-Backed Strategies to Overcome Labor Shortages
1. Expand Recruitment to Untapped Talent Pools
Women hold just 18% of technician roles, and veterans remain underrepresented despite 25% of transitioning service members having mechanical or technical skills that directly apply to semiconductor work (SIA, 2023; BLS, 2023). Expanding recruitment efforts to these groups represents a major opportunity to close the labor gap, potentially filling over 20,000 of the 67,000 roles needed by 2030 (Oxford Economics, 2023). Entry-level roles, such as those highlighted in our Entry-Level Semiconductor Jobs guide, are ideal starting points for building diverse pipelines. Intel’s Military Transition Initiative and inclusive hiring programs like those at Primacy Careers have proven success in building sustainable talent strategies.
2. Invest in Training and Upskilling Programs
By 2030, 39% of semiconductor job skills will shift as new technologies like AI-integrated production, advanced packaging, and 3D chip design reshape fab operations (World Economic Forum, Future of Jobs 2025). Without ongoing training, even experienced workers risk falling behind, and the skills gap will continue to widen. Upskilling initiatives have the potential to address 58% of the 67,000-role gap (SIA, 2023), particularly for roles like Cleanroom Technicians, which typically require just 6–12 weeks of training and offer a $45,850 median salary (BLS, May 2023). As we shared in our blog on Top Skills for Semiconductor Jobs, companies that prioritize upskilling not only fill roles faster but retain top talent for the long haul. Partnerships with institutions such as Arizona State University demonstrate how targeted programs ensure a steady pipeline of ready-to-hire candidates.
3. Leverage Automation and Advanced Technology
With fabs adopting AI and automation, productivity increased by 15% in 2024 (Deloitte, 2025), and Samsung cut labor needs by 30% through automation. This technology reduces the need for repetitive, low-skill tasks and keeps production moving even amid labor shortages—while giving existing workers opportunities to grow into higher-value roles.
4. Boost Retention with Competitive Incentives
Turnover has jumped 25% since 2020, with 15% of workers leaving annually (McKinsey, 2024). Competitive pay, tuition support, shift bonuses, and clear promotion paths are now essential. Micron’s 2024 program, for example, cut turnover by 18%, keeping 900 employees on board through a combination of financial incentives and career growth opportunities.
5. Partner with Staffing Experts Like Primacy Careers
Staffing partners fill roles 30% faster than in-house teams (Aberdeen Group, 2024), making them an essential solution for semiconductor companies facing workforce shortages. At Primacy Careers, we specialize in supporting manufacturers with high-volume hiring needs and delivering pre-qualified candidates for critical roles like Material Handlers and Quality Assistants. By partnering with staffing experts like us, semiconductor companies can reduce hiring timelines, streamline onboarding, and keep operations running smoothly—even in today’s competitive labor market.
The Long Game: Building a Workforce Ready for 2030
Addressing semiconductor labor shortages isn’t just about filling roles today—it’s about securing long-term growth in an industry expected to hit $1 trillion globally by 2030 (McKinsey, 2024). The U.S. semiconductor workforce is projected to grow to 460,000 jobs by 2030 (SIA, 2023), requiring proactive workforce strategies now. Leading companies like Intel, TSMC, and Texas Instruments are already investing in partnerships, sustainability, and education pipelines to keep pace with demand. The companies that build talent pipelines today will define the future of the industry tomorrow.
The semiconductor labor shortage is here—and companies that act now will lead the $700 billion market into the next decade.
Contact Primacy Careers to secure the workforce you need to power your success.
