American Semiconductor’s False Promises

Latest update time：2024-01-10

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Source : Content compiled from businessinsider by Semiconductor Industry Observation (ID: i c b ank), thank you.

When I met Colin Gardner in September, he was tired of working at Taco Bell. He started working at a fast-food chain while in college as a way to make money while pursuing a degree in psychology. After graduating in May, he said he had trouble finding a job in the field because most jobs require a master's degree. The 22-year-old needs a job that can help launch his career, or at least one that pays better.

Thankfully, Gardner saw an ad on YouTube for the Quick Start program, a partnership between a major semiconductor company and three community colleges in Maricopa County, Arizona, that promises training People become semiconductor processing technicians, the frontline workers who help make the chips that power everything. From iPhones and washing machines to pickup trucks and military equipment. The program was the first of its kind and laid the foundation for similar initiatives across the country.

The 10-day program seemed like a perfect fit for Gardner: It was local, relatively short, and it seemed like a promising first step toward a future industry career in Arizona.

"I applied because I thought it would be an easy, cheap certification that would get me a job in the industry right away and hopefully I would enjoy it and get at least a better salary than Taco Bell," he said at said late September, halfway through the program.

But since completing Express Entry, Gardner has come to a worrying realization: There aren’t enough semiconductor jobs available. Having spent time in Arizona, it's clear to me how much economic conditions, a slowdown in construction and slow allocation of government funds have dampened recent enthusiasm for the promise of a semiconductor job boom. Jump Start is just one of the programmes, but its links to big companies and its prime location in Arizona, the future home of the US semiconductor industry, mean its graduates' output is useful for the country's massive investment in chip manufacturing wind vane.

Of course, the character is expected to be implemented within the next few years. But being trained for a future job won’t do you much good when that future isn’t here yet.

Not going according to plan

Semiconductors have become a critical technology, which is a serious problem for the United States because only 12% of chips are produced domestically, and the epidemic has proved that any disruption in the supply chain can have a significant impact on our economy. The U.S. government is eager to bring the industry back home.

In 2022, US President Joe Biden signed the "Chip Act", which will bring the US semiconductor boom to a climax, including US$52 billion in subsidies aimed at bringing more chip manufacturing to the United States. Much of the money is expected to go to Arizona, which has a history of semiconductor manufacturing.

But despite these positive developments, industry leaders are issuing dire warnings: There won't be enough American workers to fill their planned factories. Semiconductor manufacturing requires an army of technically trained technicians, computer scientists and engineers to produce highly sophisticated technology. Given the rate at which people are joining the industry, a July study by the Semiconductor Industry Association in partnership with Oxford Economics estimated that the U.S. will be short of nearly 70,000 semiconductor workers by 2030.

This is where programs like Quick Start come in.

Quick Start launches in July 2022 with support from major industry players such as TSMC and Intel. The program costs a little more than $300 in total, and graduates of the 10-week course will receive a semiconductor pre-apprenticeship certificate that can be used to find employment in the industry, typically in a semiconductor technician role. Entry-level technicians can expect to earn approximately $30 per hour, depending on experience, with opportunities for advancement.

“I’m constantly learning and training here,” Lisa Strothers, a 2022 Express Entry graduate who landed a job at Intel last year, told me.

When I spoke to program leaders, they said that in some ways, Quick Start has been a huge success: 3,000 people have passed an online pre-test of the program, which was shut down in March due to excess demand. Closed temporarily, then reopened in September. Nearly 900 students have signed up for the program, more than 700 have successfully completed the program, and about 300 are on a waiting list. Nearly two-thirds of students are students of color and half are first-generation college students.

Despite this success and the alleged need for more semiconductor workers, Jump Start graduates face a growing problem: Many of them are without jobs.

Due in part to slowing demand for their technology, semiconductor companies that have been outspoken about their need for talent with industry experience have scaled back recent hiring and even laid off some employees, leading to an oversupply in projects such as Quick Start. There are few pathways for graduates to find employment in the industry.

Of the 240 former Express Entry students who filled out employment outcomes forms as of June 30, 31% said they had been hired by the industry, while others said they were either still looking for work (58%). Either looking for a job and not looking (11%). As for the hundreds of other students, including those who completed the program in recent months, Quick Start had no idea what they were doing. The lack of recent data on employment outcomes raises questions about the program's success.

“Typically, education is trying to keep up with industry,” Leah Palmer, executive director of the Arizona Advanced Manufacturing Institute at Mesa Community College, told me in late 2023. “What we do, at least in entry-level positions, is that we A mechanism is created to systematically create more output than demand can handle. ”

Palmer said she and other Quick Start representatives meet monthly with about 30 people from major semiconductor companies who serve on the program's advisory board. These meetings are used to share updates on industry conditions and programs, specifically course completion numbers, course additions, career fairs, and funding opportunities. At a conference in September, Palmer said the companies were hesitant to provide many details about their workforce growth plans.

“When I ask them what their future hiring needs will look like, they’re just stunned,” she said. "They can't talk to it and won't talk to it. Even Intel and TSMC can't give any feedback."

When asked about the company's hiring plans, a TSMC spokesman said late last year that the company had hired more than 2,000 factory workers at its Arizona facility and planned to eventually hire about 4,500 employees. An Intel representative told Business Insider that the company is actively hiring, noting that it has job openings across the United States. Gary Burley, a professor of Quick Start programs who has worked at Intel for nearly 20 years, said the recent hiring slowdown is not surprising because the industry is no stranger to hot and cold hiring cycles.

“The history of the semiconductor industry is that you hire a lot of people and then — wow, wow,” he said. "People are not buying it anymore. We need to back off."

For many embattled Quick Start graduates, this precedent is of little comfort.

Break a promise

People signed up for the Jump Start program with the expectation of a chance to network and eventually interview with semiconductor companies — the same promise the program's website once made, but has since been removed. Early last year, industry career fairs were held monthly, giving job seekers the opportunity to learn about career opportunities and meet recruiters. But those events have dried up — the last job fair was in June, and no others have been scheduled.

Even students who were lucky enough to attend the job fair felt like they were floating in the wind. One former Quick Start graduate told me that the job fair they attended in April left a lot to be desired. The graduate requested anonymity because of concerns about career repercussions. We all know their identities.

"Basically, what happens is, it's like 3.5 hours of PowerPoint, and then in the last 30 minutes, they say, 'Okay, now it's social time. Let's get started,'" they said. "There were a million people there, so even the people you wanted to talk to, you had to wait in line. So it was a little awkward."

After finally getting an interview with a major semiconductor company last year, the graduates say they were told the company's hiring freeze would likely halt their progress for at least a few months — and have since been told they would no longer be hired. . Considered for this position.

"It's not really like, 'Oh, we're dying for people. If you come into this program, we're going to help you get a high-paying job,'" they said of the semiconductor company. "It's not that simple."

While they eventually found work with the company through contractors last year, they said they were not optimistic about their chances of direct employment in the near future.

"It's been a very long process and now I'm actually doubting whether I'll keep going," they said.

In addition to no longer committing to interviews with semiconductor companies, Quick Start has taken other steps to lower candidate expectations. The scheme's website now says hiring with its employment partners has "slowed down" and it doesn't "know when hiring will pick up again". Project leaders hope to learn more about the industry recruitment plan at the next advisory board meeting in February.

Another problem with fast-start schemes – and perhaps a reason for graduate recruitment challenges – is the relatively short training period. Amid a more difficult hiring environment, some chipmakers — including those who helped establish the program — are beginning to question whether training is enough to prepare graduates for jobs in the industry. Gabriela Cruz Thompson, Intel's director of university research partnerships, said in late 2023 that the company was evaluating whether Express Entry graduates were ready for success.

"We ask ourselves, and we ask the managers of those who are hired, whether this training is adequate and whether it is unfair to them to hire them and then make them incapable of doing their jobs," she said.

If the training is deemed insufficient, Maricopa County may consider adopting a training program closer to the one-year training program Intel is launching with Ohio community colleges.

A hiring slowdown, along with reconsideration of the program's status as an appropriate training venue, has forced Quick Start leaders to consider reducing enrollment — even as the need for training remains.

"We're going to have to slow down our flow so we're not sending out more people who have absolutely no employment opportunities," Palmer said.

Unless things change soon, she said, the plan is likely to reduce the number of courses — 14 will be offered at three colleges this spring.

Obstacles abound

In addition to short-term economic factors, Palmer sees two reasons why semiconductor companies are slow to hire, she said. First, they're waiting to see how the CHIPS Act funds will be released. The first CHIPS Act funding was announced in December, nearly 1 1/2 years after the legislation was signed into law. The waiting period has slowed plans by companies such as Taiwan Semiconductor Manufacturing Co., which is seeking billions in U.S. subsidies.

“They don’t know how much money they’re going to get, and they don’t know when they’re going to get it,” Palmer said of semiconductor companies. He added: “The industry tells us that after the CHIPS funding is available, planning for the future will Recruiting long-term employees." If Biden loses the presidency this year, uncertainty about funding could further limit hiring, Palmer said.

Second, while many chip factories are being built across the United States, workers will not be able to staff the manufacturing plants until they are built. Construction delays don't help. Samsung and TSMC, for example, have both delayed chip production from 2024 to 2025 — in part, the latter said, due to a shortage of skilled construction workers in the United States.

Other factors could also slow construction. In December, Commerce Secretary Gina Raimondo said environmental review requirements could force a pause in construction of some chip projects for "several years." Efforts by Congress to exempt chip companies from some scrutiny have stalled, Bloomberg reported.

While the recruiting chaos is very frustrating for some Express Entry students, many students in the class I visited seemed to view Express Entry as a valuable opportunity given the long-term prospects of the industry. The AI boom is likely to further increase demand for chips and create more jobs in the semiconductor industry in the coming years. But for "fast-entry" graduates desperate for employment now, the promise of future recruitment may not be reassuring.

In January, I followed Gardner, a fast-food worker who had switched to Express Entry, to see how his job search was progressing. He said he tried looking for a position, but more than two months later, he still hasn't found a job in the semiconductor industry. Gardner told me it was difficult to determine which jobs he would be suitable for.

"I would keep looking, but it seemed like I would have to get an associate's degree in electrical engineering or something similar to have a good chance of finding a job in the industry," he said. "I did take the course thinking it would be more direct to a job, so I was a bit disappointed in that respect."

In the meantime, he said he's still working at Taco Bell but is optimistic about his career path. He said he will begin chaperone training at a local high school in the coming weeks. If all goes well, he said, this will become his main focus in the short term.

“In my interviews, they said there is liquidity in hosting jobs,” he said. “So I believe that if I find myself unable to transition into semiconductor manufacturing, I’ll be fine.”

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https://www.businessinsider.com/semiconductor-chips-jobs-hiring-arizona-tech-phoenix-tsmc-intel-china-2024-1

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