TSMC & Rapidus Wafer Plants Worsen Japan's Talent Shortage
As prominent manufacturers establish semiconductor facilities in Japan, including the construction of a wafer plant in Kumamoto by TSMC and a new facility by Rapidus in Hokkaido, the demand for semiconductor engineers in Japan has reached a critical juncture. According to a comprehensive survey conducted by Recruit Holdings, a leading Japanese recruitment firm, the demand for semiconductor engineers for the fiscal year 2022 (April 2022 to March 2023) has surged to 3.8 times that of the fiscal year 2017. Notably, in the first half of 2023 (January to June), the demand for talent in semiconductor-related technologies has witnessed a remarkable growth of 4.6 times compared to the figures from 2017.
Geographical regions hosting new semiconductor facilities, such as Kumamoto in Kyushu, where TSMC's cutting-edge plant is situated, and Hokkaido, the site for Rapidus's endeavor to produce 2nm chips, are experiencing an acute demand for semiconductor engineers. The statistical data provided by Recruit Holdings illustrates that, in the fiscal year 2022, the demand for semiconductor engineers in Hokkaido and the Tohoku region has increased by 5.4 times compared to 2017. Similarly, in Kyushu and Okinawa, this demand has reached a noteworthy 5.2 times that of 2017.
In contrast to the year 2013, the demand for semiconductor engineers in 2022 and 2023 has surged by over 10 times, underscoring a significant escalation in the industry's labor demand. The talent shortage in the Japanese semiconductor industry became evident in 2016, following workforce reductions in semiconductor companies. This trend has further intensified with TSMC's announcement of a new factory in Kumamoto in 2021 and the establishment of Rapidus in 2022, resulting in a subsequent increase in job vacancies.
Within the semiconductor industry, employment opportunities in Japan's relatively advantaged equipment and materials sectors are experiencing rapid expansion. Conversely, positions in logic integrated circuits (IC) and memory semiconductor manufacturing are witnessing a slower growth rate. Throughout the fiscal year 2022, nearly half of the engineering job vacancies in the semiconductor industry were associated with equipment and component development. Semiconductor material development, quality management, and reliability assurance accounted for almost 20%, with the remaining positions focusing on semiconductor component development.
During the construction phase of semiconductor wafer plants, the consolidation of the supply chain is gradually forming semiconductor clusters. The completion of wafer plants is anticipated to lead to a substantial increase in job vacancies for semiconductor component development engineers.
In the context of the scarcity of semiconductor engineers, a discernible trend is the entrance of experienced professionals into the labor market. According to reports, Rapidus aims to revitalize the Japanese semiconductor manufacturing industry and has successfully attracted experienced talent from the peak period of the Japanese semiconductor industry, including individuals over 60 years old. This diverse talent pool encompasses expertise in semiconductor manufacturing, IC design, and component industries. As of December 2023, Rapidus boasts a workforce of 280 employees, solidifying its commitment to industry revival.
