Will Americans Manufacture CHIPS?

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Chips ACT Passage

The CHIPS ACT will be a tough sell for American workers…I believe the US needs to manufacture chips, but I don’t see the current labor market in the US filling that need.

The US needs this capability for supply chain and national security reasons.

But will Americans line up to work in a chip manufacturing plant?

Currently, there is not enough qualified labor in the US willing to work for cheap wages in chip manufacturing…

“Hiring has never been harder for small business owners,” says NFIB chief economist Bill Dunkelberg. “The labor shortage remains frustrating for many small business owners as they continue to manage inflation and other economic headwinds.”

Have you seen the working conditions in a microchip manufacturing plant?

Frontline work in this kind of plant is harsh. Do you think there will be lines of Americans willing to work in this industry? Maybe engineers and project managers will be easy to fill, but what about the frontline workers?

Small Businesses Struggle to Hire Qualified Workers

Small businesses have difficulty finding frontline fast food and sales staff in the current job market. Chip manufacturing frontline jobs require work in harsh conditions – wearing personal protective equipment – and require a technology background and skill set.

The work needs to be in super clean plants with no electronic devices (phones) in the work area…

Work is fast-paced, as chips must be produced quickly and in sufficient volume for profitability…

Turnover is high, and pay is low in these frontline roles worldwide…

Would you retrain to work in a line position in a chip manufacturing plant?

“First, it’s now up to 50% cheaper and 25% faster to build a semiconductor fab in Asia. A one-time investment that’s only a small fraction of the tens of billions of dollars needed to build a leading-edge facility will not change that. The fundamental reasons for costly and slow manufacturing in the U.S.—regulations, labor costs, and so on—will continue to make American manufacturing untenable.”

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