The Global Chip Act Race: Why Funding Alone Won’t Solve the Semiconductor Challenge

In recent years, the semiconductor industry has become a central focus for governments worldwide. The global chip shortage, growing demand for advanced technologies, and geopolitical uncertainty have all led to massive national investments aimed at domestic chip production.

From the US CHIPS and Science Act to the EU Chips Act, and strategic funding across Asia, we are witnessing an unprecedented level of public and private spending to secure the future of semiconductor manufacturing.

But while much attention is placed on the amount of money being spent, there’s a growing issue that risks undermining these efforts:

You can build fabs with billions, but you can’t run them without skilled people.

The Race at a Glance

The U.S. is leading with the CHIPS and Science Act committing over $52 billion to revive domestic chipmaking and reduce dependence on foreign supply chains, unlocking major projects such as:

• Intel building massive new sites in Ohio and Arizona.
• TSMC, the Taiwanese chip giant, is setting up multiple fabs in Arizona.
• Micron and Samsung are making multi-billion-dollar bets on U.S. soil.

In total, these companies are investing over $200 billion, signaling a long-term commitment to reshoring production.

However, workforce challenges are impacting progress. While funding has accelerated construction, the rapid expansion has revealed a shortage of skilled workers—particularly engineers and technicians—needed to fully staff these facilities. Some projects have faced delays or reduced initial capacity as companies work to scale up training and recruitment efforts. The industry is making strides, but meeting long-term talent demands remains a key focus.

Europe

Europe is also playing the long game through its EU Chips Act, investing around €43 billion to double its share of global chip production to 20% by 2030. Intel’s flagship investment—a planned €30 billion site in Germany—is a centerpiece, alongside major collaborations like STMicroelectronics and GlobalFoundries’ new fab in France.

Germany, France, and Italy are seeing the most action, with companies like Infineon, Bosch, and NXP expanding or entering joint ventures. But Europe’s challenge is unique: unlike the U.S. or Asia, it’s not one country—it’s a union of many. Aligning policies, labor, and funding across nations complex and like the U.S., Europe also suffers from a shortage of skilled talent, especially in advanced manufacturing.

Asia

While the West is catching up, Asia remains the epicenter of global chip production. Countries like Taiwan, South Korea, Japan, and China still control the lion’s share of manufacturing—especially in advanced nodes.

• China has already invested over $150 billion into its semiconductor sector through state-backed funds and is now entering a third wave of funding.
• South Korea is going even bigger with a $450 billion plan led by Samsung and SK Hynix, aiming to become the world’s chipmaking superpower by 2030.
• Japan is making a comeback with support for projects like TSMC’s Kumamoto plant and a national push to triple chip sales by 2030.
• Taiwan, home of TSMC, continues to set the pace, investing heavily to maintain its dominance.

However, even Asia is starting to feel the strain with talent shortages and rising geopolitical tensions casting uncertainty over the region’s long-term chip security.

The Overlooked Challenge: Talent Shortages

The semiconductor industry is highly specialized. Manufacturing advanced chips requires not just machines, but engineers, process technicians, and operators trained to work in cleanroom environments under tight tolerances.

The Semiconductor Industry Association estimates the US alone will need 67,000 more skilled workers by 2030. McKinsey forecasts the global industry will require over 1 million new workers in the same timeframe.

Here are some real-world examples:

• TSMC’s Arizona Fab: Construction delays due to a lack of trained US workers. Taiwanese staff had to be brought in to manage operations.
• Intel in Germany: High costs and a slow rollout of supporting infrastructure have created additional workforce planning issues.
• China’s “Big Fund”: Some investments failed due to inexperienced management and lack of engineering leadership.

Some governments are beginning to shift focus from capital spending to education and workforce training.

• Singapore has partnered with universities to launch semiconductor training programs.
• India is building new semiconductor training centers under the “Semicon India” initiative.
• The US has allocated $13 billion of the CHIPS Act to workforce development, though implementation remains in early stages.
• The EU is funding new microelectronics education programs, but coordination across member states remains a challenge.

The global chip race is not just about manufacturing scale — it’s about long-term resilience. That resilience depends on people: engineers, technicians, researchers, and skilled operators.

Investing in talent is just as critical as investing in technology.

If countries want to build sustainable semiconductor ecosystems, they must balance their funding strategies with a strong commitment to workforce development, education, and industry-academic collaboration.

After all, the future of semiconductors won’t be secured by subsidies alone. It will be built by people.