Reshoring Semiconductor Manufacturing: Preparing for the Next Hiring Renaissance

The semiconductor industry is entering an exciting new era of reshoring semiconductor manufacturing, driven by major federal investments such as the CHIPS and Science Act. 

This effort aims to boost U.S. semiconductor manufacturing on U.S. soil by addressing both economic growth and national security concerns. The U.S. government has committed $53 billion to this initiative, aiming to restore the country’s leadership in semiconductor production.  A foreseeable talent gap looms, however.  This threatens to slow the pace of progress.   

With an estimated 67,000 jobs expected to remain unfilled, the industry faces a significant challenge in finding enough skilled technicians, engineers, and industry-specific experts. 

To overcome these challenges, innovative workforce solutions like Hire-Train-Deploy (HTD) and apprenticeship programs are playing a pivotal role in preparing for this next hiring renaissance. 

These insights were first shared during our webinar, “Semiconductors: The Next American Hiring Renaissance. To access the full recording, click here.  

Why Reshoring Semiconductor Manufacturing is a Game-Changer 

By bringing semiconductor production back to U.S. soil, we reduce our vulnerability to global supply chain disruptions and safeguard our economic future. It’s about reclaiming control, fostering innovation at home, and ensuring that the U.S. stays at the forefront of a fiercely competitive global market. 

In 2023, global semiconductor sales hit $527 billion, with nearly 1 trillion chips sold worldwide—equivalent to over 100 chips per person on the planet. As the cyclical market downturn has ended and demand surges, World Semiconductor Trade Statistics estimates project sales to exceed $600 billion in 2024. 

Now, with the infusion of the CHIPS and Science Act, the U.S. can become a part of this significant conversation.  

According to the Semiconductor Industry Association (SIA), since the CHIPS Act was introduced, over 90 new manufacturing projects have been announced across 28 states, representing nearly $450 billion in planned investments by companies within the semiconductor ecosystem. 

However, despite the billions in investments, industry experts like Robert Weinman from the National Institute for Industry and Career Advancement warn that the U.S. education and workforce systems are unprepared for the surge in demand.  

During Smoothstack’s recent “Semiconductors: The Next American Hiring Renaissance” webinar, Robert highlighted the challenge, noting that many companies are already struggling to find enough skilled talent to fill technician and engineer roles.  

This shortage could grow even more acute as new fabs come online over the next few years. 

The Workforce Challenge: Closing the Skills Gap 

One of the main barriers to success is the skills gap. As Weinman noted during the webinar, 39% of the semiconductor workforce will be made up of technicians, 35% engineers, and 26% highly specialized engineers with advanced degrees.  

Unfortunately, the current pipeline is far from close to meeting these needs.  

Even with existing educational programs, only a fraction of the necessary talent is being developed, and as many as 50% of graduates with an engineering or advanced manufacturing degree return to their home countries after completing their education on U.S. soil. 

Preparing for the Hiring Renaissance with Hire-Train-Deploy 

One promising solution to the workforce challenge is the Hire-Train-Deploy (HTD) model. 

As an innovative alternative to traditional recruitment, HTD allows semiconductor companies to bring on cohorts of custom-trained engineers, specifically equipped for the roles they need to fill. This model reduces recruitment risks, shortens time-to-hire, and ensures that workers are job-ready on day one. 

During the webinar, Aaron Ritchie explained how HTD bridges the gap between education and job-readiness, allowing companies to hire from a wider pool of candidates and offer specialized training tailored to the company’s specific requirements.  

The HTD model also helps address another key challenge: retention. By investing in workers from the start and offering them clear pathways for growth, companies using HTD create more committed, engaged employees.  

As Ritchie pointed out, this model not only provides access to a new, untapped pool of talent—such as auto mechanics, veterans, or adjacent industry workers, but also gives them the chance to pivot into a high-demand, high-paying industry like semiconductors. 

Supplemental Workforce Solutions: Apprenticeships and Ecosystem Partnerships 

In addition to HTD, apprenticeships are playing a growing role in developing the workforce. 

Weinman noted that partnerships between community colleges, employers, and workforce agencies are critical to building long-term pipelines of talent. Programs like Gateway Apprenticeships, which help high school students transition directly into semiconductor roles, are examples of how to address the workforce needs starting from the ground up. 

Sara Johnson of SkyWater Technology echoed this sentiment during the webinar, emphasizing the need for scalable workforce development programs that can meet the industry’s needs now and in the future. As companies like SkyWater expand their operations, they are increasingly looking for creative ways to tap into new talent pools, such as veterans and reskilled workers from adjacent industries. 

Smoothstack, a Department of Labor-approved apprenticeship program, is at the forefront of this effort, offering a tailored approach to developing semiconductor talent. Unlike traditional educational models, Smoothstack’s Hire-Train-Deploy methodology focuses on hiring individuals with foundational skills and then providing specialized,job focused  training which aligns directly with the unique requirements of the semiconductor icompany. This ensures that Smoothstack graduates are not only job-ready but equipped with the exact technical expertise needed to excel in the specific semiconductor manufacturing and engineering role they were trained for. 

Through this structured program, Smoothstack helps fill crucial gaps in the workforce by offering both entry-level and upskilling opportunities, creating a flexible, scalable solution for companies looking to meet the growing demand for skilled technicians and engineers. 

By combining industry-specific training with a clear career pathway, Smoothstack’s apprenticeship model ensures that the U.S. semiconductor industry has the skilled workforce it needs to support its continued growth and innovation. 

The Road Ahead: A Renaissance in U.S. Manufacturing 

The next decade is critical as the reshoring of the U.S. semiconductor manufacturing continues, ensuring the success of the CHIPS Act investments. But even billions in investment from federal sectors will not guarantee the success of the industry – its future will depend on its ability to transform a generation of the workforce into skilled engineers. 

The Hire-Train-Deploy model and apprenticeship programs like Smoothstack’s will be at the heart of this transformation. By adopting innovative, flexible training models, companies can meet their workforce needs and help drive a hiring renaissance that will support the U.S. semiconductor industry for decades to come.