Manufacturing semiconductors is unquestionably complex — as is producing, operating and maintaining the precisely engineered and meticulously calibrated equipment used to do so. Technologically sophisticated semiconductor manufacturing equipment can be found at every step of production, and it is rarely inexpensive. From metrology equipment to packaging tools for final chip assembly, many semiconductor manufacturing technologies cost upward of $1 million apiece, with some reaching into the hundreds of millions.
Suffice it to say, those that produce semiconductor manufacturing equipment are on the hunt for people with the skills required to design, develop and keep such equipment running flawlessly. Unfortunately, so is every other company in the tech industry.
The Competition for Tech Talent Is Fierce, and It’s Not Cooling Off Anytime Soon
The demand for technical talent is pervasive — and it has afflicted the industry for decades. While technology companies have been sounding the alarm for years, the threat to innovation, production and financial viability is exacerbated as generations with decades of experience retire. They are simply not being replaced in the workforce at the same rate.
Korn Ferry predicts that 85 million tech-related jobs will go unfilled globally by 2030, an $8.5 trillion talent shortage in unrealized annual revenue. Foundries invest millions of dollars in recruiting and training people to feed the world’s avid desire for ever faster, tinier and more powerful chips. So do startups and behemoths like Google, Apple, Amazon and Microsoft.
But the search for technology professionals isn’t limited to the tech industry. In fact, companies in most (if not all) sectors — but particularly agriculture, healthcare and finance companies — compete for engineers and technicians, too. CompTIA estimates that 55% of professionals working in technical positions in the US — such as engineers, data scientists and software developers — are employed outside of technology companies. And the aerospace and defense industry is at the top of the list in terms of pay in the US, not the tech industry.
To compound matters, semiconductor equipment production requires proficiency in an array of fields beyond mechanical, electrical and software engineering. For example:
- Control systems, actuators and precision positioning systems require specific knowledge of electronics and mechatronics.
- Cleanroom protocols and specialized gas delivery systems demand expertise in vacuum and gas systems.
- Lithography and inspection tools require people who understand optical and laser systems.
In this highly constrained talent environment, semiconductor equipment manufacturers face a choice: They must either invest heavily in recruiting, training and retaining technical talent in-house or turn to a well-resourced outsourcing partner for non-core functions, allowing them to reserve those investment dollars for innovation, research and development.
Outsourcing for Talent, Quality and Customer Satisfaction in the Semiconductor Equipment Manufacturing Industry
Even when considering labor alone, the math involved in the classic “build, buy or borrow” business equation can quickly tilt in favor of outsourcing. Global semiconductor fab capacity is forecast to expand 7% in 2025, according to Semi, which also forecasts semiconductor equipment to set a record $139 billion in sales in 2026. All, of course, rests on having the talent to meet the demand.
Semiconductor manufacturing equipment companies across the world are all competing to find adequately skilled tech talent. And so is everyone in their ecosystem as well as a large proportion of companies outside of it. Recruiting isn’t cheap, and neither is training. The cost to hire a new employee can be three to four times the position’s salary, according to The Society for Human Resource Management (SHRM).
It's worth noting, too, that the seamless production of semiconductor manufacturing equipment at scale requires far more than technical talent alone. Supply chain, logistics and inventory management professionals are also required to properly source materials and components, mitigate the risk of disruption and ensure the right parts are available when and where needed throughout the product lifecycle. Additionally, toward the end of a product’s life, circular economy experts and specialized repair technicians are required to perform effective repairs, analyze root causes, harvest reusable materials and dispose of others in compliance with environmental regulations.
For these reasons, even semiconductor equipment manufacturers that choose to keep production in-house may make a different decision regarding post-sale activities such as depot repair and end-of-life services. Equipment designed for long-term use can outlast the components that comprise it. Equipment costing millions of dollars apiece is not likely to be discarded when one part fails or when a technology upgrade is required. Many lend themselves to outsourcing — provided the partner has the right people, tools, inventory and equipment to do the job in line with the manufacturer’s specifications and their customers’ high expectations for quality and quick turnaround times. Strategic facility location is also a factor for manufacturers selling across countries worldwide, whether to address talent needs, supply chain resiliency, tariff-related costs or shipping proximity.
Choosing an outsourced services partner with a strong talent pool in requisite technologies and geographies enables semiconductor equipment manufacturers to focus on core capabilities without sacrificing product quality or the customer experience.
What to Look for in a Semiconductor Equipment Lifecycle Services Partner
The technology industry is confronted with a talent shortage that shows no signs of abating, even as demand rises. Semiconductor equipment manufacturers can buffer the shortage by partnering with outsourced service providers whose expertise lies in areas critical to their success, such as depot repair, field services, supply chain solutions, technical support and customer management. Among the capabilities necessary to service technologically sophisticated equipment on a global scale are:
- Engineers and technicians
- Metrology experts
- Project managers
- Supply chain, logistics and inventory professionals
- Electronics and mechatronics experts
- Vacuum, gas and optical systems specialists
- Cleanroom authorities
- Circular economy professionals
Finding a provider focused on innovation — in skills and processes alike — should also be a key consideration to ensure they have the agility, flexibility and culture to accommodate rapidly advancing technologies, increasing automation and shifting demand. More than half of companies are responding to technological advances and investing internally to close skill gaps rather than hiring new talent or consultants, according to the Linux Foundation. Doing so allows them to create a strategic and competitive advantage by developing talent unavailable elsewhere.
In the case of outsourced technology service providers, a focus on skills advancement and the latest technology, manufacturing and process certifications keeps them — and the companies that partner with them — one step ahead of The Next Big Thing.
Close the Talent Gap With a Specialized Services Partnership Bolstered by Technical Prowess
The technology skills talent gap is truly staggering, especially considering that just about every facet of modern life depends on the mass availability and proper functioning of semiconductors to some degree. The demand for advanced semiconductor manufacturing equipment is rising in lockstep with the demand for semiconductors — and that means that the need for specialized service solutions for high-value tools and machines is, too. It’s a virtuous cycle for those with enough talent to meet demand, but it’s a vicious one for those without.
Premier provider Shyft Global Services allocates significant resources to ensure the right people, skills, tools, environments and processes are in place to support semiconductor equipment manufacturers through rapid innovation, accelerated scaling and long product lifecycles.
In “Solving the Top 7 Repair Challenges for Semiconductor Equipment,” discover how you can transform your post-sale product lifecycle, avoid talent-related bottlenecks and tackle other challenges with an outsourced services partner like Shyft.
About the Author
Steve Bair has been with the company since 1997 and currently serves as the Director of Global Engineering for the repair services organization within Shyft Global Services. He has extensive experience with and passion for product and services solution design, engineering, delivery and management. He has a proven track record in cross-functional leadership roles as well as weighing and balancing the objectives of the company and the customer to develop innovative solutions that solve complex business needs.
