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For semiconductor companies, prioritizing talent as a top strategic objective is no longer an option—it’s a necessity. The semiconductor industry is at the center of a high-stakes race amid a broad recognition that chips will be the engine for the next wave of growth and innovation. From South Korea to Germany to the United States, companies have announced plans for massive new fabs. In all, close to $1 trillion in investment is expected from 2023 to 2030. This frenzy of global expansion could reshape the industry and disperse the balance of power around the world. Talent will be a critical part of the equation in this evolving industry. Business leaders can pursue a number of actions to make the most of the existing workforce, harness previously untapped pools of workers, and fill the remaining gaps with contingent labor. Together with my colleagues Ondrej Burkacky, Giulietta Poltronieri, Andrea Pedroni, Katrin Mayer-Haug, Scott Brugmans, Brooke Weddle, we explore how these talent dynamics are shaping the industry, how needs are changing, and how industry players can begin to bridge the gap. #semiconductor #talentgap #talent #mckinsey

Interesting analysis from McKinsey on the semiconductor industry. The industry is preparing for a massive expansion with almost $1 trillion in investments expected from 2023 to 2030. This high-stakes race for manufacturing capacity could reshape the industry and disperse the balance of power worldwide. However, attracting and retaining top talent is critical to ensure that the new capacity under construction can operate at full steam when it starts production. Unfortunately, the industry is facing a massive shortfall of qualified workers due to an insufficient number of graduates, an aging workforce, and a poor perception of the industry among candidates. Business leaders must prioritize talent as a top strategic objective and take urgent, coordinated action to address this challenge. Companies can make the most of their existing workforce, harness previously untapped pools of workers, and fill the remaining gaps with contingent labor. As the semiconductor industry evolves, talent will be the key to unlocking the next wave of growth and innovation. #semiconductors #semiconductorindustry #chips #innovation #technology #talentattraction #talentretention #manufacturingcapacity #globalinvestment

Getting the right Talent will be a critical part of the equation in this evolving industry. 

In the midst of a historical boom, the semiconductor industry is fueling the future. But as we project investments close to the whopping $1 trillion mark by 2030, there's an undercurrent challenge we can't ignore — talent scarcity. Let me paint the picture: 🔋 The chip is the heartbeat of innovation, from smart appliances to life-saving medical devices. 📈 Yet, while opportunities surge, semiconductor companies grapple with a talent crunch. With a scarce pool of graduates, an aging workforce, and talent retention hurdles, the gears of growth risk grinding to a halt. So what's the strategy? For starters, as Ondrej Burkacky and coauthors suggest, it's about valuing people strategies as much as business strategies. As leaders in this electrifying sector, we need to: 💡 Optimize the productivity of our current workforce — think upskilling and automation. 🌉 Bridge the gap with contingent labor, offering flexibility and specialized skills. 🔍 Tap into untapped labor pools — diversity can be our wellspring of talent. The course of action? Make talent our top strategic priority. It's time to innovate not just in technology, but in how we empower and engage the very minds driving our industry forward. Are you ready to power up the talent revolution? #semiconductor #innovation #talentstrategy #leadership

How #semiconductor #companies can #fill the #expanding #talent #gap February 2, 2024 | Article ||Companies will need to cast a wider net, improve their employee value proposition, and get more out of their existing workforce.|| The semiconductor industry is at the center of a high-stakes race amid a broad recognition that chips will be the engine for the next wave of growth and innovation. From #SouthKorea to #Germany to the #UnitedStates, companies have announced plans for massive new factories. In all, close to $1 trillion in investment is expected from 2023 to 2030.1 This frenzy of global expansion could reshape the industry and disperse the balance of power around the world. #Manufacturing #capacity is just one part of the formula, however. Talent will be a critical part of the equation in this evolving industry. Companies must ensure they can attract and retain a sufficient pool of talent to ensure the new capacity under construction can operate at full steam when it starts production. We have noted previously the challenges semiconductor companies face in talent attraction and retention.2 Yet too few companies and regions have done enough to address the industry’s massive shortfall of qualified workers. The convergence of an insufficient number of graduates, an aging workforce, and an industry with a poor perception among candidates means these new capital projects could be delayed or unable to run at full capacity without urgent, coordinated action. For semiconductor companies, prioritizing talent as a top strategic objective is no longer an option—it’s a necessity. Business leaders can pursue a number of actions to make the most of the existing workforce, harness previously untapped pools of workers, and fill the remaining gaps with contingent labor. ● Sizing the talent challenge in semiconductors ● The siting of new construction far from existing talent pools ● A shift in required skills ● Persistent attraction and attrition issues ● Key actions to attract and retain semiconductor talent ● Tackle reasons for current attrition ● Identify and access untapped talent pools ● Enhance storytelling related to semiconductors ● Reimagine workforce productivity ● Draw on outsourced labor to manage shortages | {ABOUT THE #AUTHOR(S): #ScottBrugmans is an associate partner in #McKinsey’s Amsterdam office; Ondrej Burkacky is a senior partner in the Munich office; Katrin Mayer-Haug is a partner in the Stuttgart office; Andrea Pedroni and Giulietta Poltronieri are partners in the Milan office; Taylor Roundtree is an associate partner in the Atlanta office; and Brooke Weddle is a partner in the Washington, DC, office.} #mckinsey.com #Details: ⤵️ https://lnkd.in/gVqCcr8a

This McKinsey report was an interesting read given the multitude of semiconductor businesses in the region where I live. It states:   ‘The next 10 years could be the ‘semiconductor decade’ However, as a new era of semiconductors unfolds, companies need to ensure that they have the skills and capabilities that will enable them to innovate and compete on the global stage. In an increasingly crowded environment, the winners will be those that make bold decisions, establish dedicated capabilities, and commit to cultural transformations that will set them apart from their peers.   Is your talent strategy bold? Does your culture set you apart from your peers? Want to have a conversation about how to achieve this kind of innovation for your talent - drop me an email at [email protected]. #eindhoven #noordbrabant #semiconductorindustry #talentstorm #talentstrategy #mckinsey #semiconductor https://lnkd.in/ebMhEc9V

Navigating the next challenge. Talent shortage in supply chains. 👋 As the semiconductor industry transitions from the microchip shortage, a new obstacle emerges—the shortage of skilled talent. The tumultuous work environment during the pandemic and chip crisis has led to a wave of early retirements among supply chain professionals, creating a talent vacuum that companies are struggling to fill. 👉 Deloitte's projection of needing over one million skilled workers globally by 2030 underscores a significant gap between demand and the number of graduates entering related fields. This scarcity extends beyond managerial roles, encompassing tradespeople, engineers, and more. To tackle the talent gap and knowledge loss, companies can institute mentorship programs and invest in learning and development initiatives. These strategies facilitate the transfer of institutional knowledge and ensure the workforce stays equipped with evolving skills. Collaborating with universities becomes imperative to build a pipeline of talent, especially as some institutions now offer majors tailored to the semiconductor supply chain. Partnerships, including those with overseas universities, align with the global nature of the industry. What is your opinion on this subject? 🤔 #logistic #supplychains #transport

McKinsey & Company New tactics for new talent: Closing US semiconductor labor gaps America’s impending semiconductor expansion depends on three labor pools that are currently under pressure. Without new action, large talent gaps will likely persist, despite current workforce development.