Mexico, Malaysia, and India are racing to grow their semiconductor manufacturing sectors, hoping to cut reliance on costly imports and move up the global tech value chain. While the ambitions sound promising for national economies, the impact on workers will depend on how these plans address wages, training, and job security.
They are targeting legacy chips—used in cars, appliances, and consumer electronics—rather than the advanced processors made by tech giants TSMC or Nvidia. By producing chips domestically, they aim to keep more of the supply chain at home, which could generate manufacturing, engineering, and research jobs.
However, skills and specialty shortages remain a critical hurdle. In Mexico, many engineers lack advanced technical English, and the country produces far fewer chip designers than the industry needs. Malaysia graduates 5,000 engineers a year yet still requires ten times that number, while brain drain to higher-paying markets like Taiwan and the U.S. is common. In India, manufacturers report a lack of skilled workers in fabrication and packaging, slowing the pace of new projects.
Industry observers note that while the semiconductor push could create more opportunities for local workers, much will depend on how governments and companies address skills development and retention. Without significant investment in training and competitive compensation, analysts warn that these industries may continue to rely heavily on a small number of imported specialists, while the bulk of the workforce remains in lower-paid assembly roles.
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