According to reports, Intel is facing a shortage of skilled staff for its planned chip factory in Germany. The company signed an agreement with the German government in June to receive €10 billion ($10.9 billion) in subsidies for the construction of a wafer fabrication facility in Magdeburg, Saxony-Anhalt. However, Intel's workforce requirement for the factory is around 3,000 people, while the local apprentice program for technicians currently only trains two individuals. The situation is further complicated by "Byzantine bureaucracy" and high energy prices that are hindering Intel's efforts to build and operationalize the plant.
Intel plans to address this issue by starting an apprenticeship program at the Magdeburg site next year, with the aim of building the next generation of talent in the region. However, given that the apprenticeships typically last for three years, it raises doubts about starting production as early as 2027. To complement their workforce needs, Intel also intends to send local trainees to its factory in Ireland for the final year of their apprenticeship program since there are no suitable local facilities in Magdeburg.
This problem is not unique to Intel, as other companies in the semiconductor industry are also struggling with a shortage of skilled workers. Taiwanese company TSMC, for example, has delayed the start of production at its Arizona fabrication plant due to a lack of skilled workers. They have resorted to sending technicians from Taiwan to help train local workers.
The semiconductor industry is vital for the technological progress of many countries. Governments and companies worldwide are investing significant resources to strengthen the industry and secure the necessary talent and funding. In Germany, Intel is receiving substantial subsidies, while in the United States, the company is partnering with community colleges to address the skills gap for another chip factory.
China, on the other hand, is struggling to raise the required funding to meet its target of ¥300 billion ($41 billion) to support its own semiconductor industry. The country's Ministry of Industry and Information Technology has faced difficulties with the planned third round of investment for the China Integrated Circuit Industry Investment Fund (also known as the Big Fund) due to the current economic climate.
In separate news, there are reports that the US may extend a temporary waiver granted to South Korean chipmakers Samsung and SK Hynix on licenses to bring American chipmaking equipment into China. The extension of this waiver would allow these companies to continue their operations in China, where they have factories producing memory chips.
