US chip dreams will fade without more immigrants
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.
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