Employees of Samsung Electronics Co. check equipment of the clean room of its semiconductor production facility. (image: Samsung Electronics)
SEOUL, Feb. 20 (Korea Bizwire) — The shortage of skilled employees is emerging as another problem for South Korea’s chip industry, which is already struggling due to the repercussions of the global economic slump.
The number of students who gave up enrollment in the semiconductor departments of the nation’s four major universities even after being admitted in 2023 was equivalent to 155.3 percent of the enrollment quota, according to Jongro Academy, an educational institutions for college admissions.
Despite the fact that such departments guarantee after-graduation jobs at large conglomerates once certain conditions are met, a large number of high-caliber students opted not to enroll and instead chose to enter medical school.
“Currently, it’s estimated that the industry will face a talent shortage of about 54,000 workers on the basis of bachelor’s, master’s and doctorate level graduates by 2031,” Park Jung-ho, vice chairman and co-CEO of SK hynix, said at a symposium held last week.
According to the Korea Semiconductor Industry Association, the chip industry’s total workforce is expected to grow by 5.6 percent per year from 177,000 in 2021 to 304,000 in 2031.
However, the supply of new talent for the industry, including those who graduate from vocational high schools, universities and graduate schools, remains low at about 5,000 per year.
Samsung Electronics and SK hynix recently offered handsome performance bonuses and raised starting pay for college graduates despite deteriorating financial circumstances as part of self-rescue efforts to attract more qualified employees.
“The idea of increasing the semiconductor tax credit to 15 percent is facing opposition, with some calling it preferential treatment for big companies,” said Ahn Ki-hyun, a senior executive director at the Korea Semiconductor Industry Association.
“Against this backdrop, who do you think wants to work in the manufacturing industry?”
Kevin Lee (kevinlee@koreabizwire.com)
