China's Semiconductor Industry Sees Huge Demand in Chip Industry for 2024: Here's What The Nation is Doing to Solve it

Here's what China is doing to boost its chip design workforce.

China sees a huge potential demand for workers in the chip design sector amidst the US-China tech war.

The tech war between the US and China appears to be intensifying as China reportedly aims to strengthen local government backing for its chip industry. Additionally, local Chinese governments are increasing their support for local chip manufacturing companies.

This development comes after US companies ASML and Lam Research, the top chip-making tool providers, recently issued an internal memo asking their employees to refrain from directly or indirectly serving customers in China until further notice.

New Shanghai Semiconductor Training Facility Opens! Will It Lead to China's Own Silicon Valley?
A new type of 300 millimeter wafer with semiconductor chips and finished microchips of the semiconductor German manufacturer Bosch are seen in Dresden, eastern Germany on May 31, 2021. Photo by JENS SCHLUETER/AFP via Getty Images

Specifically, the US Department of Commerce stated to "restrict the ability of US persons to support the development or production" of chips at "certain China-located semiconductor fabrication 'facilities' without a license."

However, China has been taking its own initiatives to address its need to cater to the semiconductor industry in the tech war against the US.

Demand For Chip Design Sector in China's Semiconductor Industry

During the World Conference on Integrated Circuits on Nov. 18 in Hefei, Globalink reports that the total demand for talent in China's semiconductor industry will reach 789,000 over the next two years, compared to the 570,700 people employed in the sector as of the end of 2021.

According to the South China Morning Post, China's semiconductor industry will require over 800,000 personnel by 2024, which is a third more than the country's current pool of qualified candidates.

The chip design industry would need an estimated 325,200 workers by 2024, based on a survey of more than 2,000 Chinese semiconductor companies and more than 400 educational institutions.

The findings were supported by the unofficial China Semiconductor Industry Association, which states that the remaining will be in integrated circuit production and packaging, according to Yahoo.

China's Move To Boost Integrated Circuit Industry

As a result, China is rushing to establish semiconductor training facilities. While local governments are increasing training resources, top institutions across the nation, like Tsinghua University and Peking University, have established specific semiconductor schools.

On Oct. 26, Yahoo reported that China launched a campus to train personnel for the semiconductor sector in the Lingang Special Area, a part of the Chinese metropolis' vast free-trade zone.

Deputy Director of the hi-tech and industrial development division Lu Yu expressed his vision to create a "world-class base for the integrated circuit industry," similar to the global tech center Silicon Valley in California.

Additionally, in order to reach their goal of semiconductor self-sufficiency, which is plagued by a skills shortage, Chinese tech companies have given an increase in wages to employees in the semiconductor industry.

In January, Shanghai announced various incentives as part of its strategy to entice fresh talent and businesses involved in the semiconductor supply chain. Additionally, one of the programs covered by this policy includes training senior university students who have not studied microelectronics, as well as experienced workers who do not have any experience in chip assembly.

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Written by: Andi C.

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