In a rare display of bipartisan cooperation, Democrats and Republicans passed the Chips and Science Act to revitalize US semiconductor manufacturing. However, a failure to address the shortage of skilled workers threatens the industry's growth. Pr...
By Bloomberg | Updated:
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Democrats and Republicans worked together to pass the Chips and Science Act — but their persistent failure to unite behind common-sense, bipartisan reforms to bring more skilled immigrants to the US puts this notable achievement in jeopardy.
Congress passed the law in 2022 to revive domestic semiconductor manufacturing and reduce dependence on fabrication plants in East Asia. On paper, the initiative is already a success: Nearly $30 billion in subsidies and $25 billion in loans have been awarded, supporting investments of roughly $350 billion. One industry-sponsored study expects US chipmaking capacity to triple by 2032, with output of advanced logic chips rising from zero in 2022 to 28% of global production.
To build and run those fabs, however, companies need workers the US doesn’t have. Shortages of skilled installers of hyper-precise chipmaking equipment have already delayed projects. The number of Americans studying in relevant graduate programs has been flat for 30 years. A third of current fab workers are 55 and older, and more than half say they’re eager to quit. The Semiconductor Industry Association says chipmakers will face a shortfall of 67,000 skilled workers by 2030.
Congress needs to weigh the consequences. Companies that can’t scale up will demand additional subsidies or shift production to Taiwan and Japan. As domestic production struggles, the problem might get worse, as American STEM graduates seek work in other fields. The hoped-for benefits — US technological leadership and enhanced national security — will come to nothing.
The Chips Act anticipated this difficulty. It includes a $200 million training and education fund, and it requires companies to prioritize workforce development. Colleges have announced new degree and certificate programs aimed at the semiconductor industry. But these efforts will take time to yield results. They won’t meet the industry’s immediate needs and will likely fail in the long term too if recruiters can’t hire more immigrants. US citizens are a minority among STEM graduates with advanced degrees relevant to chipmaking.
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The current immigration pipeline is no use. The much-maligned H-1B program is hugely oversubscribed every year. Caps on visas plus limits per country mean applicants from India, the likeliest source of new semiconductor workers, can wait decades for their status to be resolved.
Comprehensive immigration reform would be best, but failing that, here’s a good idea: the “chipmaker’s visa,” suggested by the Economic Innovation Group. It would auction a certain number of visas (say, 10,000 per year for 10 years) for high-skilled workers, subject to a salary minimum. Recipients could change jobs within the industry and would be offered an expedited path to permanent residency after working for five years. Proceeds from the auctions would help fund scholarships and workforce development programs for American students and workers.
That’s the minimum Congress should do. The shortage of STEM workers extends far beyond semiconductors. The US should increase the overall number of visas for high-skilled immigrants, prioritizing applicants with in-demand STEM skills and exempting foreign graduates of US schools with advanced STEM degrees from green-card caps. That last group, by itself, could provide enough workers to meet most of the need for semiconductor engineers.
Many in Congress are proud of the Chips Act. If they ignore the skilled-worker shortage, it will become an embarrassment.
Worried about layoffs? 9 things to know if you are an H-1B worker in the US
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For almost a year, foreign tech workers in the US have faced an unpredictable landscape. Giants like Google, Tesla, Walmart, and others have announced extensive layoffs, dimming the aspirations of numerous immigrants.
Amidst the struggle to find alternatives, here are nine things every H-1B visa holder should know.
Also See| H-1B visa application process: A step by step guide
For almost a year, foreign tech workers in the US have faced an unpredictable landscape. Giants like Google, Tesla, Walmart, and others have announced extensive layoffs, dimming the aspirations of nu..
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Upon termination of employment, non-immigrant visa holders in the U.S. are granted a 60-day grace period to find a new job or change their visa status.
This provision, effective since early 2017, allows individuals to remain legally in the country and seek new employment opportunities. During this time, they can also transition to another visa status if needed.
Upon termination of employment, non-immigrant visa holders in the U.S. are granted a 60-day grace period to find a new job or change their visa status. This provision, effective since early 2017, all..
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Foreign nationals who lose their jobs can consider changing their status to other non-immigrant categories, such as F-1 student status or B-2 visitor status, under the guidance of an attorney.
This can provide a temporary solution while they explore long-term options.
Foreign nationals who lose their jobs can consider changing their status to other non-immigrant categories, such as F-1 student status or B-2 visitor status, under the guidance of an attorney. This c..
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If a foreign worker has been counted under the H-1B cap within the last six years, a new employer can file for an H-1B transfer immediately without waiting for the H-1B cap registration period.
This applies to those who have been previously counted under the cap, making it easier for them to continue their employment in the U.S.
If a foreign worker has been counted under the H-1B cap within the last six years, a new employer can file for an H-1B transfer immediately without waiting for the H-1B cap registration period. This ..
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H-1B workers with approved I-140 petitions in the green card process can be hired by new employers within the grace period.
They can work from outside the U.S. and return once their H-1B petition is approved and they obtain a new visa stamp. If an H-1B visa is already held, it can be used with the new petition to re-enter the U.S.
H-1B workers with approved I-140 petitions in the green card process can be hired by new employers within the grace period.They can work from outside the U.S. and return once their H-1B petition is a..
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L-1 workers who lose their jobs and wish to change their status to H-1B within the 60-day grace period must have been previously counted under the H-1B cap. If not, they must wait for the next H-1B lottery registration.
L-1 workers who lose their jobs and wish to change their status to H-1B within the 60-day grace period must have been previously counted under the H-1B cap. If not, they must wait for the next H-1B l..
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The maximum duration for H-1B status is six years. If the worker has used less than six years, the new employer can use the remaining time.
Extensions beyond six years are possible with an approved I-140 or a pending I-485 Adjustment of Status filed within one year of the final action date becoming current.
The maximum duration for H-1B status is six years. If the worker has used less than six years, the new employer can use the remaining time. Extensions beyond six years are possible with an approved I..
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If a terminated employee remains on payroll but is not active in work, this is known as 'Garden Leave.' For compliance, the termination date is considered the actual date of termination unless the worker is on medical leave or disabled.
If a terminated employee remains on payroll but is not active in work, this is known as 'Garden Leave.' For compliance, the termination date is considered the actual date of termination unless the wo..
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A new employer can file for a new labor certification and I-140 petition while retaining the priority date of the worker's previous I-140. This allows the non-immigrant worker to maintain their immigration status continuity.
A new employer can file for a new labor certification and I-140 petition while retaining the priority date of the worker's previous I-140. This allows the non-immigrant worker to maintain their immig..
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If an I-485 Adjustment of Status application has been pending for 180 days or more, the worker can take up a new job in a similar occupation.
The underlying labor certification and I-140 remain valid, and the worker must file a new Form I-485, Supplement J. This portability option also extends to self-employment if necessary.
If an I-485 Adjustment of Status application has been pending for 180 days or more, the worker can take up a new job in a similar occupation. The underlying labor certification and I-140 remain valid..
