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Biden Administration Launches Program to Tackle US Chip Workforce Shortage
The Biden administration has initiated a new program aimed at bolstering the US computer-chip workforce to prevent a labor shortage that could jeopardize domestic semiconductor production. Dubbed the workforce partner alliance, this initiative will utilize a portion of the $5 billion federal funding allocated for the National Semiconductor Technology Center (NSTC). The NSTC plans to distribute grants to about 10 workforce development projects, with budgets ranging from $500,000 to $2 million.
Additional application processes are expected to be launched in the coming months, with officials determining the total level of spending after reviewing all proposals. The funding is derived from the 2022 Chips and Science Act, a significant legislative effort that earmarked $39 billion in grants for boosting US chip manufacturing and $11 billion for semiconductor research and development, which includes the NSTC.
In response to these incentives, firms have pledged to invest over ten times the federal funding, setting the stage for a major transformation in the global semiconductor supply chain. This marks the first workforce-centric funding effort under the legislation. Industry and government officials have highlighted the necessity of substantial labor investments to ensure the success of new factories, with projections indicating a shortfall of 90,000 technicians by 2030—a year when the US aims to produce at least 20% of the world's most advanced chips.
“It is imperative that we develop a domestic semiconductor workforce ecosystem that can support the industry’s anticipated growth,” emphasized Michael Barnes, senior manager of workforce development programs at Natcast, the nonprofit established to run the NSTC.
Since the signing of the Chips Act two years ago, over 50 community colleges have launched new or expanded semiconductor-related programs. The largest manufacturing awards under the Chips Act, granted to Intel Corp., Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co., and Micron Technology Inc., each included dedicated workforce funding of $40 million to $50 million.
On Monday, the Commerce Department announced its 12th grant from the manufacturing program: $6.7 million for Rogue Valley Microdevices. This funding will support a new factory in Florida, which will focus on producing chips for defense and biomedical applications.
