US chip ambitions stall sans immigrants

The Chips and Science Act, a rare moment of bipartisan cooperation in a divided Congress, could fall short of its ambitious goals due to a persistent failure to address skilled worker shortages. Passed in 2022, the Act aims to revitalize domestic semiconductor manufacturing and lessen reliance on East Asia. On paper, it’s a success story: billions in subsidies and loans have spurred investments, promising a threefold increase in US chipmaking capacity by 2032.

• However, building and operating these advanced fabrication plants (“fabs”) requires a skilled workforce – a resource the US currently lacks. Shortages of technicians qualified to install hyper-precise equipment are already delaying projects. The number of Americans pursuing relevant graduate degrees has stagnated for decades, and an aging workforce with high retirement rates further exacerbates the problem. The Semiconductor Industry Association estimates a shortfall of 67,000 skilled workers by 2030.
• The consequences of inaction are dire. Companies unable to ramp up production will either seek additional subsidies or move operations overseas, jeopardizing the entire initiative. Domestic production struggles could further discourage US STEM graduates from pursuing careers in this vital field.  The Act’s intended benefits – solidifying US technological leadership and national security – would then be lost.
• The Chips Act itself acknowledges this challenge, allocating $200 million for workforce training and education, while also requiring companies to prioritize developing a skilled domestic talent pool. Colleges are launching new semiconductor-focused programs. However, these efforts are long-term solutions and won’t meet the industry’s immediate needs. The current immigration system also proves inadequate. The H-1B visa program, designed for high-skilled foreign workers, is heavily oversubscribed, with lengthy wait times for applicants from India, a major source of potential talent.
• Ideally, comprehensive immigration reform would address these issues.  Failing that, a creative solution like the “chipmaker’s visa” proposed by the Economic Innovation Group deserves serious consideration.  This proposal envisions auctioning a set number of visas (e.g., 10,000 annually for a decade) to high-skilled workers meeting a minimum salary threshold. Recipients would enjoy job mobility within the industry and a pathway to permanent residency after five years. Auction proceeds would then be used to fund scholarships and training programs for US students and workers.
• Looking beyond semiconductors, the issue of skilled worker shortages extends across the STEM spectrum. Increasing the overall number of high-skilled worker visas is essential.  The process should prioritize applicants with in-demand STEM skills and exempt foreign graduates with advanced STEM degrees from US universities from green card limitations. This last group alone could potentially address a significant portion of the semiconductor industry’s engineer shortage.
• Congress should take pride in the Chips Act’s initial success. However, ignoring the skilled worker shortage will turn this achievement into a missed opportunity. Embracing a more open and strategic immigration approach is critical to ensure the Act’s long-term viability and solidify America’s future as a technological leader.

Conclusion

The Chips Act represents a promising step towards US self-sufficiency in semiconductor production. However, its success hinges on the availability of a skilled workforce. Without a solution to the worker shortage, the initiative could falter, jeopardizing billions of dollars in investments and potentially undermining national security interests. Congress must act swiftly to address this critical bottleneck. Implementing a combination of targeted immigration reform measures and domestic workforce development programs is essential. By fostering a more welcoming environment for skilled immigrants and investing in education and training, the US can ensure a robust talent pipeline for the semiconductor industry and other STEM fields, solidifying its position as a global technological leader.