Why Talent Strategy Is Just as Important as Product Strategy in the Semiconductor Industry

No Easy Answers to Semiconductor’s Talent Crisis

Technology is advancing at a rapid pace, which is causing the demand for talent to increase quickly. Yet the semiconductor talent pipeline isn’t keeping up. What was once a short‑term challenge is now evolving into a long‑term talent crisis, driven by a range of factors that continue to limit the available pool of qualified workers.

STEM Skills Gap

Widening the labor pool to search for workers with transferable skills is often a successful strategy in tight hiring markets. But the semiconductor industry requires expertise that can be difficult to find in other fields. Among professionals already employed, many with a STEM background lack the specialized semiconductor experience that most companies are seeking.

For those hoping the next generation of workers will alleviate the shortage, think again. The current number of students pursuing STEM degrees, particularly with a focus on semiconductors, isn’t enough to address the talent gap.

High Turnover

The dwindling talent pool doesn’t just impact companies’ ability to hire new workers. It affects their attrition rates among their current employees who are more overworked, overwhelmed and stressed than before. Aggressive timelines, long hours, and insufficient staffing can lead to burnout and retention issues. Conversely, stiff competition for a limited pool of qualified applicants can also lead to job hopping, as candidates follow better offers at competing companies.

Retirements

You only gain true semiconductor expertise through years of hands‑on experience. So, what happens when those years walk out the door? One-third of semiconductor employees are aged 55 or older. When these workers retire, they won’t just leave behind unfilled positions. They’ll leave decades of potential knowledge gaps that will be difficult to fill and can disrupt your workflow. At the same time, demand for semiconductor talent is outpacing the available supply and competition for the limited pool of skilled workers has never been fiercer.

The Most In-Demand Semiconductor Careers

There’s a high demand for mid- to senior-level professionals with extensive semiconductor experience. Some of the most common positions our clients request include:

• Manufacturing and Engineering Technicians
• Construction Managers
• Electromechanical Engineers
• Systems Engineers
• Full-Stack Software Developers
• Embedded Systems Developers
• Manufacturing and Industrial Engineers
• Controls and Automation Engineers

The Talent Strategies Furthering the Semiconductor Revolution

If we don’t fix the semiconductor talent shortage now, the next tech revolution could stall before it starts. To truly address the issue, however, your talent strategy must be as fully developed and invested in as your production strategy.

There are three main options to find the semiconductor talent you need.

Find a Competitive Edge in a Crowded Hiring Market

As the demand for semiconductor technology continues to grow, competition for experienced professionals will be fierce. To stand out in the hiring market, you’ll need to think beyond just a competitive compensation package.

Articulate the intangible values of your company to candidates. Be vocal about opportunities for growth and advancement, including what resources you’ve dedicated to upskilling and training. Don’t overlook the importance of a robust employer value proposition and clear lines of communication with management, either; these factors can all help differentiate your company from competitors.

Invest in Internal Upskilling

Look for opportunities to upskill or reskill your current workforce. Investing in training opportunities can help you build your semiconductor workforce from within, rather than competing in the hiring market.

Access to upskilling and retraining also carries long-term retention benefits. When surveyed, workers who felt that their company encouraged them to learn new skills were 47% less likely to search for a new role.

Turn to Contract Talent

When competing for a small pool of highly skilled, niche talent, consider working with an industry solutions partner to source contract roles.

You’ll gain access to a pipeline of specialized talent from around the country, with the ability to place workers quickly to match your timeline. Working with contract talent gives you the ability to scale as needed, ramping up your workforce during times of increased production and reallocating resources across different phases of the production cycle.

Trust the Leaders in Engineering and Semiconductor Support

Actalent is the leading provider of engineering talent in the U.S., connecting organizations with more than 2,500 engineers who possess critical industry skill sets. As a strategic partner, we help semiconductor stakeholders bridge critical engineering workforce and capabilities gaps, strengthen security and resilience, and captialize on CHIPS Act funding opportunities. We understand success in semiconductor roles requires experience rooted in semiconductor-related environments and we excel at identifying that specialized expertise while also crafting creative solutions to find the right fit.

Our consultative approach starts with a deep understanding of your initiatives, timelines and challenges. From there, we align the appropriate skill sets and talent volume needed to achieve your goals. Our services are highly customizable and scalable to match the demands of your project. Actalent works with you to build a competitive edge in the talent marketplace—enhancing your ability to attract top candidates. We’ve also made significant institutional investments in upskilling programs to support both talent attraction and long‑term retention and engagement.

With more than 40 years of experience in engineering services and support, we draw on lessons learned across relevant semiconductor‑adjacent industries to strengthen our diverse expertise in the semiconductor sector. Contact us today to start expanding your semiconductor workforce.