Semiconductor Job Market and Industry Trend [Update 2023]
The semiconductor job market has exhibited a robust and steady growth trajectory in recent years, driven by a substantial demand for highly skilled professionals across diverse domains within the industry. The global semiconductor industry is expected to continue its growth trajectory, at a rate of 6 to 8 percent growth (CAGR), reaching a trillion dollars by 2030. The growth is driven by the increasing demand for new technologies such as 5G, artificial intelligence, electric vehicles (EVs), and Internet of Things (IoT) devices.
However, the near-term prospects may not be as optimistic. Deloitte’s 2023 semiconductor industry highlights the growing influence of global macroeconomic and geopolitical factors that are shaping the landscape of the semiconductor industry. Rising interest rates, increasing inflation, decreased consumer confidence, and stock market pullbacks led by the technology sector have resulted in a significant decline in market capitalization. The combined Deloitte’s 2023 semiconductor industry outlook highlights the growing influence of global macroeconomic and geopolitical factors that are shaping the landscape of the semiconductor industry. Rising interest rates, increasing inflation, decreased consumer confidence, and stock market pullbacks led by the technology sector have resulted in a significant decline in market capitalization. The combined market cap of the top 10 global chip companies has plummeted by 34%, from US$2.9 trillion in November 2021 to US$1.9 trillion in November 2022.
Global Talent Shortage Is the Top Issue in Semiconductor Ecosystem.
According to a 2023 KPMG survey, 67% of senior executives raised concerns about the semiconductor industry outlook that talent risk should be the top strategic priority over the next three years. The three main struggles that semiconductor makers faced are talent acquisition, retention, and common vision.
- In the past decade, there has been a notable 6% increase in talent inflows for employees with digital and analytics skills at integrated-device manufacturers (IDMs) and an 8% rise at fabless players. However, talent inflows into manufacturing jobs within the semiconductor industry have been comparatively lower, despite its manufacturing-intensive nature. According to 60% of executives, semiconductor companies face challenges in terms of brand image and recognition compared to other tech-focused companies. In terms of excitement levels, compensation, and development opportunities, the world’s most renowned brands are often perceived as offering higher advantages.
- 40% of employees expressed a “somewhat likely” inclination to leave their current jobs within the next three to six months. In comparison to competitors in the automotive and big tech industries, semiconductor players score well in terms of career opportunities but lag behind in sentiment measures, particularly in work-life balance, senior management, diversity, and inclusion.
- 64% of global companies outperform semiconductor players in terms of organizational health. Areas that require significant improvement for semiconductor players include talent development, capturing external ideas, and fostering a sense of shared vision, as measured by alignment with a common vision between employers and employees.
Attracting Top Talent Effectively is Crucial For Semiconductor Companies.
The semiconductor industry is projected to require over one million additional skilled workers by 2030 to meet the growing demand. On average, each job posting receives 250 resumes, and only four to six candidates are typically selected for an interview. As the competition for talent gets tighter, it’s important for recruiters to understand what the talent care most in the semiconductor industry, and implement up-to-date best practices to attract top talent.
To tackle the main struggles semiconductor companies faced in recent years, here are some top strategies semiconductor recruiters can implement to hire the right employees for your company:
- Understand the latest job trend and the role of semiconductor engineers in today’s tech industry. Be clear on job requirements, responsibilities, and qualifications to ensure that potential candidates have the necessary skills and experience required. Creating a candidate persona can also be a great approach for hard-to-hire jobs.
- Pay attention to employer branding by communicating your company’s mission, vision, and values to the public. Attract and retain top talents and make them feel supported and valued at work, fostering a positive and inclusive company culture that values diversity, equity, and inclusion.
- Offer competitive compensation and benefits, as well as flexible work arrangements. Our LinkedIn survey shows over 50% of engineers value “competitive pay & benefits” the most in the workplace, while 14% of them care most about “work-life balance & flex time”.
- Providing opportunities for growth and development including offering training programs, mentorship opportunities, and career advancement paths, since talent development is prominent among areas that require more improvement as shown in the KPMG survey.
- Use recruiting tools such as ATS or partnering with a recruiting company to streamline your hiring process and show you value candidates’ time and effort.
Learn more about the 10 Proven Strategies to Attract Top Talents.
Find the Optimal Staffing Solution During the Ongoing Layoff Season
During the ongoing layoff season in 2023, one of the challenges is for companies to address and balance the semiconductor talent equation: shortages in some roles but layoffs in others. This means semiconductor makers may need to adjust their staffing levels quickly to match changes in demand. Turning to a tech recruiting company can be a cost-efficient and flexible solution, with many benefits they offer such as:
- Quality personnel: with their comprehensive technical expertise, a tech recruiting agency can provide qualified personnel because they already have an established network of professionals. For example, Hotfoot Recruiters, a 14-year specialized staffing firm, has been collaborating with a myriad of distinguished technology companies, leveraging our access to a pool of more than thousands of highly skilled professionals.
- Flexible staffing needs: whether it’s high-level employees, entry-level workers, or contractors, they have the resources and skills to find the right people for you based on the budget. They can provide temporary workers who can be brought on or let go as needed. They also offer access to many different types of specialists in various fields, just like HotFoot Recruiters has a pool of semiconductor engineers, FAB lab technicians, data analysts, semiconductor manufacturing engineers, semiconductor process technicians, field service engineers, failure analysis technicians, and more.
- Better risk management: tech recruiting agencies handle pre-screen, background checks, and drug testing for you so you can focus on picking the most qualified personnel.
- Streamline your hiring process: experienced recruiting companies such as HotFoot Recruiters help you save time in the screening and selection process, also reducing administrative burden.
Overall, the semiconductor job market is expected to remain strong in the coming years, offering a range of opportunities for professionals with the right skills and experience. According to Zippia, semiconductor jobs in AZ have the highest demand. However, like any industry, there may be fluctuations in job demand and market trends, so it’s important to stay up-to-date on the latest developments and skill requirements.
If you are a candidate interested in the semiconductor job market, please call 480-633-3392 and ask to speak with a recruiter or view our current openings for semiconductor jobs. For additional hiring advice, follow HotFoot Recruiters on LinkedIn or book an intro session with HotFoot Recruiters.
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