Changing demand for talent in the semiconductor industry

After suffering the worst two years of its history in 2001 and 2002, the semiconductor industry is recovering and showing signs of entering another boom. To be in a position to take advantage of the upswing, however, companies need to think and act in new ways to meet the changes sweeping the sector. Spencer Stuart surveyed 700 leading semi-conductor executives to find out how the industry is evolving to meet future challenges.

While most companies are adapting well structurally, operationally and technically to change, they are facing mounting challenges in terms of acquiring the necessary high-skilled human resources. Most are also laboring under the mistaken belief that these skills are available within the industry — usually among competitors. The facts say otherwise. The current talent pool in the industry itself is very limited.

Essential leadership skills

Demand for business and technology management skills in the semiconductor industry has always been high but tomorrow's leaders will need a new set of skills, especially experience with equipment manufacturing companies.

Companies are striving to get closer to equipment manufacturers by developing embedded software for specific end use; identifying consumer needs; and locating design centers globally. The type of competency required to accomplish these initiatives however, is rare in the industry.

To better positions themselves, semiconductor businesses are developing broader product mixes. This combination of additional products and greater customization demands exceptional business management skills.

Leaders will need to manage various customer segments; a wide product range; decreased time to market; enhanced customization; shorter product life-cycles; accelerated product roadmaps; and increased competition. To do this effectively they need technical know-how and the ability to think strategically.

Global knowledge and operating experience are also critical. Creating design centers across continents and moving manufacturing to low-cost regions is common but, while costs may be cut and international locations put the company closer to its customers, managing this effectively makes cross-cultural leadership, although rare, essential.

The world is analog

Analog skills are in short supply. The profusion of digital design jobs has seen analog skills wane, a situation exacerbated by the fact that the costs of training an analog designer far exceed those for digital courses. To try and alleviate this shortage the industry is beginning to fund analog design courses.

Many semiconductor companies lack the core capabilities required for growth: end-user skills, business complexity management, global knowledge, analogue skills and alliance management.

To fill the gaps, the semiconductor industry must expand its human capital options to attract the necessary talent. Focus needs to turn outside the industry and talent needs to be brought in from other sectors. There also needs to be greater emphasis on internal development of tomorrow’s leaders.

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