Fun with Data – Semiconductor Workers
The Semiconductor Industry Association is the voice of the US semiconductor industry and has spent the last 40 years promoting the US semiconductor market and establishing policy, much of which has been adopted by the US government. A recent report developed in conjunction with Oxford Economics spells out the impact of the semiconductor industry on the US economy, particularly on the US workforce, where the report states that the semiconductor industry directly impacts 277,000 jobs, generating $47.1b in labor income and $55.8b in economic output. Those jobs also support an additional 1.6m jobs that generate $113.7b in labor income and $190.6b in economic activity, with the manufacturing sector seeing the most impact.
The SIA also notes that a$50b investment in the US semiconductor industry would create 10 additional fabs, generating 42,000 new jobs by 2027, and using the same metrics as they did to generate the metrics above, by 2027 the semiconductor industry would support 2.13m jobs across the US economy. They take the metrics a bit further when looking at the use of semiconductors rather than the production of. The SIA says that over 300 industry sectors purchase semiconductors (2019) and so if you count all of the workers in those industries, they surmise that the impact of semiconductor products would influence 26.5m US jobs.
While we expect using a 5.7x multiplier for the economic impact of every new worker in the semiconductor industry might be a bit of an overstatement, the report does apply the impact model to the CHIPS Act, showing how each economic sector would contribute to the generation of 1.1m jobs. The Senate p[assed the US Innovation & Competition Act on June 8, which would provide $52b to fund R&D and manufacturing initiatives, with the bill currently awaiting review and a vote in the House of Representatives.
The SIA also notes that a$50b investment in the US semiconductor industry would create 10 additional fabs, generating 42,000 new jobs by 2027, and using the same metrics as they did to generate the metrics above, by 2027 the semiconductor industry would support 2.13m jobs across the US economy. They take the metrics a bit further when looking at the use of semiconductors rather than the production of. The SIA says that over 300 industry sectors purchase semiconductors (2019) and so if you count all of the workers in those industries, they surmise that the impact of semiconductor products would influence 26.5m US jobs.
While we expect using a 5.7x multiplier for the economic impact of every new worker in the semiconductor industry might be a bit of an overstatement, the report does apply the impact model to the CHIPS Act, showing how each economic sector would contribute to the generation of 1.1m jobs. The Senate p[assed the US Innovation & Competition Act on June 8, which would provide $52b to fund R&D and manufacturing initiatives, with the bill currently awaiting review and a vote in the House of Representatives.
Semiconductor Jobs Impact By Sector - Source: SCMR LLC, SIA
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