Semiconductor Industry Supply and Demand Analysis
This report, developed by RealTime Talent, aims to support the development of a CHIPS for America Act submission by the GreaterMSP Partnership. It highlights the importance of the Semiconductor Industry to Minnesota’s economy and its critical related career pathways statewide. The study focuses on the occupations most central to the Semiconductor Industry and does not address related construction, education, childcare, or other workforce needs outside of the immediate industry necessary to support the expansion of Minnesota’s local Semiconductor Industry. Additionally, it does not unpack the workforce policy or worker visa considerations that could increase access to global talent to support the Semiconductor Industry. Instead, the report concentrates on the unique strengths and gaps in Minnesota’s local Semiconductor Industry workforce.
RealTime Talent utilized baseline forecasts and the current mix of industry occupational needs to model the talent requirements for meeting the current demand in the Semiconductor Industry over the next three to five years. An input-output model was employed to determine the total number of additional workers needed to double Minnesota’s share of semiconductor production output. To discern which occupations would experience the greatest demand, the study compares the projected baseline need to the projected baseline supply of new workers in those occupations. Additionally, it layers on the modeled additional direct talent needs for further talent pipeline growth. The new annual supply of talent into Core Semiconductor Occupations is based on volumes of graduates from related programs and workers who return to this part of the labor force over the next three to five years. Workers changing jobs during this period are not included in the supply calculations, assuming that talent will continue changing jobs at the same rate unless there is a focused effort to influence that rate.
By comparing demand with the new supply, baseline occupation gaps (talent shortages) and broader talent shortfalls in a Semiconductor Industry expansion scenario can be calculated. As many Gateway and Target Occupations require postsecondary education or industry credentials, an analysis of the most prominent award gaps, i.e., the programs in which Minnesota postsecondary institutions underproduce graduates compared to national benchmarks, is used to identify priority strategies across the education landscape.
This report employs an Origin-to-Gateway-to-Target Occupation model, a concept currently utilized by the Rework America Alliance and modified in this report by RealTime Talent. The model illustrates promising, likely, and aligned pathways into the core career pathways in the Semiconductor Industry locally. The model, along with the definitions of each grouping of occupations, is presented on the following page, with further details available in the Talent Demand Detail section of this report.
