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Powerchip Tackles Engineer Shortage Amid Expansion into Japan

PSMC's new plant initiative in Japan faces talent acquisition hurdles, explores international recruitment and training programs
Taiwan
p 6770.TW Mid and Small Cap 2000 Semicon 75 Tech 350
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Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) is confronting a significant challenge as it gears up to establish a new manufacturing facility in Japan: a pressing shortage of engineers. The company, ranking as the third-largest contract chipmaker in Taiwan and sixth globally, is venturing into an 800 billion yen ($5.3 billion) joint venture with SBI Holdings, aiming to commence production by 2027. The growing influx of global chipmakers into Japan is intensifying the competition for skilled talent, making the recruitment of qualified engineers a pivotal concern for PSMC.

The corporation’s strategy to mitigate this issue includes transferring over 200 engineers from Taiwan and enhancing the skills of young Japanese engineers through extensive training programs in Taiwan. Furthermore, PSMC is contemplating innovative long-term solutions, such as establishing educational partnerships with industry, academic institutions, and government entities to cultivate a new generation of semiconductor professionals. The initiative reflects a broader industry movement toward bolstering Japan’s semiconductor sector, amidst escalating geopolitical tensions and the strategic imperative for localized chip production. PSMC’s proactive approach in workforce development and cross-border collaboration underscores its commitment to overcoming the talent crunch and advancing its technological footprint in the global semiconductor landscape.

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