Semiconductor companies can’t find enough skilled labor

The semiconductor shortage didn’t just impact the PC hardware market, it also hit home appliances and vehicles, and will continue for a long time to come, according to industry research by the Global Electronics Manufacturers Association (IPC).

More than half of the companies that responded to the survey say that the semiconductor shortage will last at least until the second half of 2022. Currently, the chip crisis is causing the price of the product to rise, along with the demand for professionals.

They also have a shortage of professionals!

According to the survey, 80% of chip producers affirm that it is increasingly difficult to find professionals, since the staff is often not trained in the handling of highly toxic components used in production.

This problem is more recurrent in Asia and North America, where companies are reporting higher hiring costs compared to Europe.

A third of semiconductor companies in Asia say it is difficult to find qualified workers, while 67% of companies in North America experience the same problem. The queue for semiconductor production is increasing by 42% for Asian companies, 60% for European companies and 67% for North American companies.

Of all the companies that responded, 46% are training and reassigning their current staff to try to meet demand, and 44% of the companies are offering higher salaries to make the position more attractive. Other measures taken to attract more professionals include making working hours more flexible and offering more training opportunities.

Raw material is also expensive

Around 90% of companies around the world responded that raw material is also becoming more and more expensive and that this phenomenon could continue for at least another 6 months. The IPC report notes that producers’ profit margin is shrinking.

Billion Dollar Losses

A report from the consulting firm AlixPartnes says that the automotive industry will lose around 210 billion dollars and more than 7.7 million vehicles will cease to be produced worldwide.

This caught the attention of the United States government, which, through Commerce Secretary Gina Raimondo, scheduled a meeting with automobile manufacturers, technology companies, and semiconductor producers to offer help from the federal government.

Source: Arstechnica