The World’s Biggest Chipmaker Is Being Bled Dry

The Taiwan Semiconductor Manufacturing Company (TSMC) essentially makes the world run. TSMC provides essential chips for Apple iPhones, U.S. F-35 fighter jets, and Amazon’s Alexa. Without access to these chips, our most important technologies would not function.<br><br>Yet TSMC is facing a severe brain drain. Since passage of the CHIPS Act in 2022, which authorizes $76 billion in expenditures to support domestic semiconductor manufacturing, hundreds of engineers and technicians have left Taiwan for the United States. The outflow of talent is crippling TSMC’s production. Soon, insufficient supply and high prices will become an issue. <br><br>The Biden Administration is trying to address these issues. However, like many American industrial policy initiatives, the CHIPS Act has an overly narrow focus on building out domestic manufacturing capacity. Almost all of the programs ignore the human component in manufacturing. <br><br>Micron CEO Sanjay Mehrotra even testified to Congress about this issue back in 2021. He stated that there are just not enough people in the US to fill the high-tech jobs currently available. According to Mehrotra, the US has only 30% of the necessary talent for building an efficient semiconductor factory. Our competitors have the advantage of a strong supply of skilled, educated workers. <br><br>However, the semiconductor industry is failing to attract and retain the best and brightest US workers. The field is too narrow and specialized, and is often seen as insufficiently prestigious. <br><br>The CHIPS Act should be amended to recognize the human element of manufacturing. The Biden administration should offer additional funding to create programs that incentivize American students to enter STEM fields.