In the era of artificial intelligence (AI) domination, one question looms in the minds of many: when will AI start replacing human workers on a larger scale? However, there is a crucial issue that precedes this potential scenario, and that is the shortage of human workers itself. The AI industry may face a significant obstacle in the form of a lack of skilled engineers and technicians.
Here are some key points to consider:
- Sales at the world’s largest chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), surged by 45% in July to $7.9 billion, highlighting the booming demand for AI chips.
- Despite the impressive growth, AI-related stocks have been volatile, sparking concerns among investors regarding risks associated with companies like TSMC.
- The shortage of skilled engineers and technicians is an often overlooked but critical challenge facing the chip industry.
- Governments globally have invested billions to increase chip manufacturing capacity, but the issue goes beyond financial investment.
Chip plants require highly skilled employees with advanced degrees in science and engineering to operate them efficiently. The construction of chip fabrication plants also demands specialized workers. The US, for example, has invested heavily in boosting its chip industry, expecting over 160,000 new job openings in engineering and technician support roles in the next five years. However, the influx of new talent into the chip industry remains alarmingly low.
- The US chip manufacturing workforce has declined by 43% since its peak in 2000, with the shortage of engineers and technicians projected to reach alarming levels in the coming years.
- Demographic trends in countries like Taiwan and South Korea, home to major chip manufacturers, pose additional challenges, as populations decline and enrollments in higher education dwindle.
- The cultural work ethic in countries like Taiwan may not be easily replicated, adding to the complexity of finding and retaining skilled workers in the industry.
While AI plays a crucial role in designing and testing new chip designs, the operation of the machinery still requires experienced human engineers. The jobs-workers gap in the chip sector is widening, urging for immediate attention and action to address the impending crisis.
The future of the AI industry hinges not only on technological advancements but also on the availability of a skilled workforce to drive innovation and growth. Addressing the shortage of engineers and technicians must become a top priority to ensure the sustainability of the chip industry and pave the way for a seamless integration of AI technologies.
