The U.S. semiconductor industry is facing a big talent problem: it will be short of 67,000 employees by 2030, according to estimates by the Semiconductor Industry Association (SIA), a lobbying group for the sector. Efforts to develop local talent in the U.S. are ongoing, but there is still a big gap, which is why the industry depends on engineers, computer scientists, and technicians from abroad.
However, the U.S. H-1B Visa system is making it tough to bring in and keep these workers, so the U.S. chip industry is calling on the U.S. government to rethink it, according to an article from Semiconductor Engineering. One of those options is a new type of visa specifically for the semiconductor industry.
A new type of visa — a Chipmaker's Visa — specifically for the semiconductor industry has been proposed by the industry and the Economic Innovation Group (EIG). This proposal aims to provide a more streamlined process for industry-specific talent acquisition. The urgency of these measures is underscored by the industry's crucial role in national security and the broader economy.
If the U.S. government were to follow EIG's proposal, it would auction off 2,500 visas per quarter, a total of 10,000 per year. The group cites a 2013 study from Orrenius et al, estimating that if H-1Bs were subject to auction pricing, they would go for between $5,000 and $10,000 each.
If a company wanted to use the visa system to avoid paying domestic applicants a market salary, the added cost of buying the visas would eliminate that benefit. On top of that, only companies with NAICS (North American Industry Classification System) codes related to chipmaking or suppliers would be eligible to bid.
"The government recognizes there is a talent shortage specific to our industry, and that it is going to take a combination of both efficient immigration policy, as well as investing in STEM programs and other programs, to help grow a workforce," Royal Kastens, director of public policy and advocacy at SEMI, told Semiconductor Engineering. "I do not think it is one or the other."
As it stands, the H-1B visa system, the primary route for the U.S. semiconductor industry to import international talent , poses many challenges. This company-sponsored visa, typically valid for three years and extendable to six, is allocated via a lottery system due to a 7% cap on visas per country, which is a challenge for workers from countries with a large population like India and China.
After the visa expires, foreign employees need to get a Green Card for permanent residency, which is another lottery due to country caps. While a worker can stay indefinitely while waiting for a Green Card via an i-140 petition, this situation leaves many skilled workers in a state of limbo, without the rights afforded by a Green Card or citizenship, and can discourage potential talent from considering the U.S. as a long-term career destination, especially if things get better at home.
One advantage of the Chipmaker's Visa is that it would be renewable once. So a foreign worker could use the first five years and then renew for another five. By the time those 10 years pass, there might be more domestic talent available. EIG says that this "longer-than-usual term" gives U.S. semiconductor firms time to scale up. It also claims that having the auctions quarterly makes the system more flexible than current-day, annual distributions.
Education in the U.S. is another part of the puzzle. A significant chunk of graduate students in engineering come to the United States from abroad. But once they graduate, sticking around in the U.S. is not easy because of visa issues, which just adds to the industry's shortage of skilled workers.
To fix these problems, multiple ideas are on the table. Beyond the chipmaker's visa, these include giving H-1B visa holders more time to find new jobs (because today they have 60 days to find a new job or leave), upping the visa caps, and making it easier for graduates from U.S. universities to stay and work.
This past November, Senators Hickenlooper and Cramer introduced the EAGLE Act, which would increase the 7 percent per-country cap to 15 percent and make other changes to allow more talent in. It would apply across industries and not specifically help build up U.S. semiconductor manufacturing.
"Arbitrary caps on employment-based visas are holding back our economy when so many industries are hurting for workers," Hickenlooper said in a press release at the time. "This bill is a commonsense fix to our immigration system that will reduce visa backlogs, and fill gaps in our workforce."
Whether change comes through the Chipmaker's Visa, the EAGLE Act or some other government action, there seems to be a consensus that the current immigration system isn't allowing the U.S. to scale up its chip manufacturing capabilities and meet the promise of the CHIPS Act.
