- Workforce Development
Semiconductor manufacturing in the United States is experiencing a renaissance due to pandemic-related shortages causing the private sector and federal and state governments to invest heavily in increased domestic production.
Currently, 75% of the worlds semiconductors, which are an important component in chips used in a wide variety of electronic and computing devices, are manufactured in East Asia. Over the coming decade, billions of dollars of federal money and private capital will be allocated to building and operating semiconductor manufacturing facilities across the US.
Given the significant scale of these manufacturing facilities, nearby communities will be well served if they start planning now for the changes that will be coming their way, both in the short and long term. For these communities, this spending will have spillover effects into a variety of other areas, including infrastructure and municipal services, housing, and the growth of accommodations, services, and semiconductor-adjacent industries.
The impact of some of these major planned facilities include:
- Intel projects that their plant in New Albany, OH, will bring 3,000 direct jobs to the Columbus region once it has been built out, and more than twice as many short-term construction jobs. These increases are likely to lead to thousands of other supporting jobs as well. Newcomers to the region will increase demand for housing, and an already tight labor market will be stretched as industries compete for workers.
- Micron’s build-out of multiple manufacturing facilities in Onondaga County, NY, is projected to bring nearly 40,000 jobs to the region by 2055. The investment in these facilities and associated growth will have significant implications for regional population, employment, economic activity, and state and local revenues.
- In Phoenix, AZ, the Taiwan Semiconductor Manufacturing Co. is spending $40 billion on growing its presence in the area and creating two new facilities, which are projected to bring 2,500 new direct jobs and tens of thousands of additional jobs in construction and chip-related industry employment. Given the presence of other semiconductor and chip manufacturers in the region, this will continue to drive growth in the Phoenix metro area, which has seen rapid increases in population over the past two decades.
Municipalities and industries that get in front of these changes and associated planning needs will be well-positioned in the coming years to maximize economic vitality.
Do you need assistance creating an economic development plan or strategy that addresses semiconductor workforce development? Camoin Associates can help. Learn more about our consulting services.