The global semiconductor shortage has created some pretty big ripples across various industries throughout the world. And this includes Ireland which has always been a hub of sorts for the global semiconductor industry. So, as the demand for semiconductor chips surpasses supply, the effects on Ireland’s job market are certainly worth talking about.
But are those effects positive or negative? Let’s take a closer look.
Global Semiconductor Industry Market Value
The global semiconductor industry is a cornerstone of the modern digital economy, with a market value that has seen significant growth over recent years. As of 2022, the industry's market size was estimated at approximately $555.9 billion, and it is projected to continue its upward trajectory, potentially reaching $803.15 billion by 2028. In fact, there are some projections that put it at $1trillion by 2030.
This robust growth is driven by the increasing demand for semiconductors in more and and more applications. This includes consumer electronics, automotive technology, and industrial automation, underscoring the vital role semiconductors play in both domestic and industrial environments globally.
The Semiconductor Shortage
The global semiconductor shortage has been driven by a combination of increased demand and supply chain disruptions. The most significant of which was, of course, the COVID-19 pandemic.
Causes of the Shortage
Increased Demand: The COVID-19 pandemic accelerated the digital transformation of practically every industry and consumer niche. This led to a massive surge in demand for consumer electronics, data centres, and even automotive technologies, all of which rely heavily on semiconductor chips.
Supply Chain Disruptions: Factory shutdowns, logistical challenges, and geopolitical tensions of the past few years have disrupted the supply chain. This has reduced the production capacity of semiconductor manufacturers.
Global Impact
Automotive Industry: According to a report by Alixpartners, Major automakers worldwide have faced production delays, resulting in an estimated loss of $210 billion in revenue in 2021. This has resulted in longer wait times for new cars and an increase in value for used cars.
Consumer Electronics: Companies like Apple and Samsung have reported production slowdowns due to chip shortages, impacting their product release schedules. As a direct result, developments within the industry slowed down somewhat, but they are now back to pre-pandemic levels. However, production is still catching up.
Impact on Ireland’s Semiconductor Job Market
So now we get to the most important aspect of the global chip shortage – the impact on jobs in the Irish semiconductor industry.
Increased Demand for Skilled Labor
Job Openings: Ireland has seen a surge in job openings within the semiconductor industry. The demand for engineers, technicians, and supply chain managers has increased as companies strive to enhance production capabilities.
Skills in Demand:
Semiconductor process engineering
Supply chain management
Quality assurance and testing
Expansion of Semiconductor Companies in Ireland
Intel: Intel announced an €10.1 billion investment to expand its manufacturing operations in Ireland, which is expected to create 1,600 permanent high-tech jobs.
Analog Devices: In 2023, Analog Devices, headquartered in Limerick, announced that it is investing significantly in research and development, leading to the creation of additional jobs in the region. The investment will see the company spend €630 million.
Qualcomm: The company is establishing a world-leading centre of excellence in its state-of-the-art Penrose Dock facility in Cork.
These expansions are seen to be a direct result of Ireland signing the Joint Declaration on Processors and Semiconductor Technologies in 2021. This saw the country commit to collaborating with 21 other member states to strengthen Europe's processor and semiconductor ecosystem, a move that ultimately paved the way for the EU Chips Act.
The Challenges
So is Ireland ready for what some people are calling the semiconductor gold rush? There’s a lot of positivity surrounding the industry particularly with those major investments by both Intel and Analog Devices. But, of course, there are some challenges to overcome.
Talent Shortage
Skilled Workforce: Despite the demand, there is a shortage of skilled professionals in the semiconductor industry here in Ireland. Companies are facing challenges in filling positions that require specialised expertise. This is then exacerbated by the global talent shortage which leads us to the next challenge.
Talent Acquisition: Irish semiconductor companies are increasingly looking at global talent pools and offering attractive relocation packages to bring in skilled professionals from other countries. We have seen this firsthand here at Software Placements. But what we have also seen is that countries like Ireland need to work extremely hard to attract talent. With the talent shortage being felt globally, semiconductor professionals can quite literally pick and choose where they want to work.
What it Means for Semiconductor Job Candidates
As you can see, the global semiconductor shortage has significantly impacted the job market in Ireland, creating a surge in demand for skilled professionals in the semiconductor industry.
Companies are aggressively seeking talent to help address supply chain challenges and ramp up production. This means increased job opportunities and competitive salaries for candidates with expertise in semiconductor technologies, including roles in design, manufacturing, and system integration.
For job seekers, this shortage translates to greater bargaining power and more career advancement prospects in Ireland's rapidly growing tech sector.
If you’re interested in making the move to Ireland or you are a locally-based professional looking for a new challenge, we’d like to hear from you. Software Placements can help you find your next role in the Irish semiconductor industry, all you need to do is get in touch today.