The luminous beacon of Taiwan's semiconductor sector has not only illuminated the island's technological prowess but has also cast light on a critical bottleneck: enticing enough savvy chipmakers to meet the surging demands of this high-stakes field. The past triennium has witnessed the Taiwanese chip industry's strenuous attempts to plug the talent leak that spans the entire supply chain architecture. As 2021's curtains drew to a close, the industry tallied a staggering 27,701 vacant engineer roles, catapulting a shocking 44% from the prior year's second quarter.
As the 2022 calendar pages turned, the talent crisis loomed larger, with a first-quarter job vacancy hike of 40%. Albeit a slight demand deceleration in the market from the third quarter of 2022 to the second of 2023, the industry was still short 22,820 engineers. Complicating the scene further is Taiwan's dwindling pool of young talent, marred by plummeting STEM graduates and the challenges posed by a low fertility rate and an aging populace.
Externally, Taiwan's struggle intensifies under the magnifying glass of global competition for this niche expertise, with international tech behemoths fiercely bidding for semiconductor savants. Amidst this backdrop, the island's strategic advantage wavers as its talent may venture abroad, lured by lucrative prospects, while the allure to draw top overseas talent dims.
As AI ushers in its era, high-end chips – the very conductors of this tech symphony – are in even greater demand, spurring a need for a robust workforce to propel the industry forward. Taiwanese chip titan TSMC has forecasted a heady 20% annual revenue surge, further testament to the industry's hunger for human capital.
In a decisive swing towards talent cultivation, Taiwan's Executive Yuan unfurled the "Leading Enterprise Research and Development In-depth Cultivation Plan" in June 2020, underscoring emergent technologies like novel semiconductors. Yet it was not until a year later, with 2021's "Accelerating Future Technology Research and Talent Planning" initiative, that the acute need for talent was brought to the forefront, evidenced by the establishment of semiconductor-focused institutes across nine universities.
Fanning the flames of this talent forge, the National Science and Technology Council poured NT$35 billion ($1.1 billion) into the "2025 Top-Down Semiconductor Plan," birthing 848 masters and 241 Ph.D. candidates, ready to join the industry's ranks. Come November 2023, the "Chip-based Industrial Innovation Program (CBI)" promises a bountiful NT$300 billion ($10 billion) across a decade to intertwine generative AI with chip tech, potentially positioning Taiwan to continue its reign as a microchip monarch.
Yet, this strategy, while sterling, lacks the depth to deftly navigate the complex currents of the talent pool. The Lai administration would do well to mull over policies that prod curiosity in the formative years of education, leverage the underutilized potential of women in engineering, and harness the capabilities of Taiwan's seasoned workforce through upskilling initiatives.
Moreover, beyond lixing within its borders, Taiwan must pave pathways for international talent, carefully balancing public sentiment against the strategic need for innovation and expertise in semiconductor craftsmanship. While the colleges and chip colossuses of Taiwan lay out the welcome mats to such talent with scholarships and language training programs, it is imperative that the government trailblazes with visa schemes designed to charm and retain these global chip champions.
Certainly, the solution isn't merely governmental; the semiconductor industry must self-reflect and irradiate an allure that transcends hefty paychecks, by fostering work environments that resonate with the aspirations of tomorrow's chipmakers. Only then can Taiwan hope to sustain the semiconductor supremacy that has, for so long, been synonymous with its name.
