From Moon Landings to Microchips: Rebuilding America's Technical Workforce Pipeline
The U.S. is facing a severe shortage of technical workers, with industries like semiconductors, manufacturing, and defense at risk. Here’s what you need to know:
Shrinking Workforce: The semiconductor workforce has dropped by 43% since 2000. By 2029, the industry will need 88,000 engineers and 75,000 technicians, but current trends show a massive shortfall.
STEM Education Gaps: Only 29% of Americans rate K-12 STEM education as above average. Many schools lack advanced math and science courses, and 28% of science teachers are unqualified in their field.
Economic and National Security Risks: With only 12% of global semiconductor manufacturing happening in the U.S. (down from 37% in the 1990s), the shortage threatens America’s innovation, manufacturing, and defense capabilities.
Solutions in Action:
Public-private partnerships like apprenticeships and regional tech hubs are growing.
The CHIPS and Science Act allocates $280 billion to boost domestic tech industries.
Immigration reforms aim to attract global talent for critical technical roles.
Fixing this crisis requires bold collaboration between government, industry, and education. The U.S. must act now to rebuild its technical talent pipeline and maintain its global leadership in innovation and manufacturing.
Building the Semiconductor Workforce
What the Apollo Program Teaches Us About Building Technical Talent
The Apollo program offers valuable lessons for developing technical talent. At its peak in 1967, NASA and its contractors employed over 400,000 people. This massive workforce required recruitment strategies that continue to influence industries today.
How NASA Built Its Workforce in the 1960s
NASA’s workforce approach in the 1960s was ahead of its time. The agency actively sought young talent, with the average age of engineers at Mission Control during the Moon landing being just 28 years old. Here’s how they did it:
College Recruitment: NASA targeted colleges graduating electrical and mechanical engineers, choosing candidates based on their academic performance.
Competitive Salaries: NASA offered entry-level salaries of $7,729 annually for GS-7 positions, making the jobs attractive to new graduates.
Expanding Diversity: In 1964, the Marshall Space Center started a Cooperative Education Program aimed at historically Black colleges to widen the talent pool.
These strategies from the Space Race era provide insights into addressing today’s workforce challenges.
Applying Apollo’s Methods to Modern Manufacturing
The semiconductor industry, facing a projected shortfall of 59,000 to 146,000 workers by 2029, can draw inspiration from Apollo’s strategies. Public-private partnerships and career development programs, modeled after NASA’s efforts, are already being implemented.
Bill Wiseman, a senior partner at McKinsey & Co., highlights the need for a cultural shift to attract talent:
"We kind of need a 'Top Gun' moment. Top Gun came out in 1986, and everybody wanted to become a naval aviator all of a sudden. Before that, most people didn't even know the Navy had planes, let alone wanting to go join the Navy to fly them. That's the kind of moment we need in the semiconductor industry."
Another key to Apollo’s success was collaboration. NASA brought together government agencies, private companies, and universities to achieve its goals. This cooperative model is just as important today as the U.S. works to increase its semiconductor manufacturing share from the current 12%.
Gene Kranz’s well-known statement reflects the mindset required for success:
"Spaceflight will never tolerate carelessness, incapacity or neglect...from this day forward Flight Control will be known by two words: 'tough and competent.'"
Updating Technical Education and Training Programs
The U.S. faces a major challenge in technical education, with only 29% of Americans rating the nation's K-12 STEM education as above average.
Addressing STEM Education Issues
In 2019, just 41% of fourth and eighth graders and 21% of twelfth graders reached math proficiency. Over half of U.S. high schools don't offer calculus, and many lack basic physics and chemistry courses.
Adding to the problem, 28% of science teachers in grades 7-12 hold degrees in unrelated fields, and 40% of math classes in high-poverty schools are taught by instructors without proper subject-specific qualifications. This lack of preparation directly impacts students' readiness for technical careers.
To address these issues, schools should focus on:
Expanding access to advanced math and science courses
Enhancing training and certification for STEM educators
Aligning teaching materials with current industry needs and technological advancements
Expanding Apprenticeship Programs
Beyond K-12 education, vocational training programs like apprenticeships play a key role in bridging workforce gaps. The semiconductor industry highlights how these programs are essential. SEMI anticipates 18 new semiconductor fabrication plants opening in the U.S. by 2026, creating a demand for about 70,000 new workers. The National Institute for Innovation and Technology (NIIT) is addressing this need with 79 programs across 17 states, involving roughly 4,500 apprentices.
Shari Liss, executive director of the SEMI Foundation, explains the industry's changing perspective:
"Apprenticeships are just one potential alternative pathway to hire, but by sheer need, member companies are starting to recognize that we can't only go to the universities to fill all of these roles."
These programs follow an "Earn and Learn" model, blending hands-on training with classroom education. For example, AIM Photonics has partnered with Stonehill College and Bridgewater State University, achieving 100% placement rates for students in internships and roles at top manufacturing companies.
Linking Schools with Industry Demands
Aligning educational programs with industry needs is key to improving STEM education and apprenticeship outcomes. The manufacturing sector alone could see 2.1 million unfilled jobs by 2030 due to a skills gap. The Manufacturing USA network is tackling this challenge, engaging over 90,000 individuals in workforce development activities and investing $480 million in these efforts in 2021.
IACMI has also made strides, placing over 100 students in internships at more than 40 companies, with durations ranging from 10 weeks to a full year. However, gaps in STEM workforce demographics persist. African Americans make up 11% of the U.S. workforce but only 7% of STEM roles, while Hispanics represent 17% of the workforce but just 7% of STEM positions.
The wage gap between STEM and non-STEM careers is another motivator. STEM professionals earn a median annual salary of $86,980, compared to $38,160 for non-STEM roles. Strengthening educational and training pipelines will not only help the U.S. maintain its technological leadership but also provide greater economic opportunities for future generations.
Building Local Tech Industry Centers
Tech clusters provide economic benefits by fostering specialized labor, supplier networks, and shared knowledge that drive innovation.
Creating Technical Industry Clusters
Technical industry clusters are key to boosting productivity and driving new ideas. For example, manufacturers in Taiwan's Hsinchu Science Park achieve an average value-add of 50%, compared to 30% for companies outside the park. This hub employs around 150,000 people, and in 2012, 65% of its top executives were alumni of National Chiao Tung University.
In New York's Albany region, IBM's backing helped establish GlobalFoundries, America’s only semiconductor foundry, alongside a leading nanotechnology research center at SUNY Albany. This shift came after 20 years of focused investment, totaling approximately $15 billion in facilities and equipment. According to NY CREATES:
"has shown that regional competitive advantage can actually be grown and that public investments in research infrastructure can lead to a resurgence in well-paying manufacturing jobs".
Key elements for successful clusters include strong university partnerships, solid industrial infrastructure, dedicated state support, workforce training programs, and local supplier networks. Together, these factors create an environment where tech manufacturing startups can thrive.
Supporting Tech Manufacturing Startups
Once clusters are established, the next step is fostering tech startups. The CHIPS and Science Act has allocated $10 billion to develop regional innovation hubs, aiming to spread technical manufacturing beyond coastal areas. Intel is a prime example, with its $20 billion investment in two advanced semiconductor facilities in Columbus, Ohio. These facilities will create 3,000 jobs, each offering an average annual salary of $135,000. To support this, Columbus State Community College is launching the Ohio Semiconductor Collaboration Network to train 5,000 semiconductor technicians over three years. The state is also contributing $1.95 billion through grants, infrastructure investments, and tax incentives.
Intel CEO Pat Gelsinger highlighted Ohio's manufacturing heritage, saying:
"Ohio has this tradition of manufacturing. You all like to build stuff. And that's exactly what we're going to do together".
Ohio's Third Frontier Program, initiated in 2002 with $2.3 billion in funding, has utilized $900 million in state funds to attract over $8 billion in additional investment. This effort has resulted in the creation of 882 companies and nearly 100,000 direct and indirect jobs. Matthew Taylor, the former head of the Royal Society of Arts, advises:
"think like systems and act like entrepreneurs".
This comprehensive strategy strengthens local tech hubs, builds a skilled workforce, and fuels economic growth across the region.
Government Actions to Increase Technical Workers
The federal government is taking steps to tackle America's shortage of technical workers, supported by the $280 billion CHIPS and Science Act of 2022. These efforts build on past strategies to strengthen the country's technical workforce pipeline.
Current and Proposed Government Programs
The TechHire Initiative has been reestablished with $50 million in annual funding to create partnerships between public and private sectors for technical training. Another proposed program, the Advanced Research Projects Agency - Labor (ARPA-L), is set to receive $100 million per year to enhance workforce skills.
The National Science Foundation's Graduate Research Fellowship offers $34,000 annual stipends and $12,000 in university support to help nurture technical talent. Additionally, universities across the nation are receiving targeted funding to establish new STEM faculty positions.
"To fulfill the extraordinary promise of the CHIPS and Science Act and secure America's innovation future, policymakers must act now to pass commensurately bold workforce development policies." - John R. Dearie, President, Center for American Entrepreneurship
Tax Benefits for Worker Training
To boost funding for technical training programs, the government is revising employer fees under the ACWIA structure. Updates aim to align fees with company size and capacity:
Employer Size Current Fee Proposed Fee Up to 25 employees $750 $1,000 26-500 employees $1,500 $2,000 Over 500 employees $1,500 $5,000
These changes are expected to increase annual training funds from $350 million to nearly $1 billion. The additional resources will support STEM education and workforce development programs nationwide. These tax adjustments work alongside planned immigration reforms to ensure a steady supply of technical talent.
Immigration Rules for Technical Skills
Immigration reforms are a key part of addressing the technical workforce gap. The semiconductor industry alone is projected to add 85,000 new technical jobs by 2030, but 67,000 of these roles risk going unfilled.
The Department of Labor is working to include semiconductor jobs on the "Schedule A" list, which simplifies the hiring process for foreign workers in critical technical roles. Currently, more than 50% of advanced STEM degree holders in the defense industrial base are foreign-born.
"The most important asset our defense industrial base possesses isn't machines or facilities, but people...Greater attention must be paid to workforce concerns...to maintain and develop the intellectual capital necessary to create and sustain war-winning weapon systems for the modern battlefield."
Montana offers a strong example of how targeted workforce programs can succeed. Nearly 47% of projected worker demand in the state is for apprenticeship-eligible occupations. Expanding similar models nationwide could help address technical workforce shortages in key industries.
Conclusion: Maintaining America's Technical Leadership
The challenges facing America's technical workforce demand immediate and unified efforts from education, industry, and government. With 38 million people - roughly a quarter of the total workforce - employed in STEM fields, the stakes are high for both economic stability and national security. These issues echo lessons from the past and call for bold changes.
Major investments in semiconductor manufacturing, such as Micron Technology's developments in Syracuse and Intel's expansion near Columbus, are boosting domestic production. However, this growth comes with a pressing need for skilled workers to meet rising demands.
"We need all-hands on deck – no group alone can solve this problem. Business, government, and academia must come together in a collaborative partnership and commitment far beyond the scale in which we are investing now. Otherwise, we risk ceding U.S. science and engineering leadership to China, with long-term risks to our national security and economic competitiveness."
– Dr. Dan Reed, Chair of the National Science Board
This highlights the importance of combining educational reforms with strong partnerships between industry and academia.
Key Focus Areas for Progress
Focus Area Key Actions Expected Impact Education Reform Fully fund CHIPS & Science Act initiatives; modernize STEM education Build a stronger domestic talent pipeline Industry Collaboration Launch a U.S. Business-Education Workforce Dialogue; expand apprenticeships Align skills with industry demands Policy Innovation Introduce a Startup Visa program; award Graduation Green Cards Attract and retain global technical talent
Industry leaders have emphasized the challenges of scaling production:
"The difficulty and value of manufacturing is underappreciated... It's relatively easy to make a prototype but extremely difficult to mass manufacture a vehicle reliably at scale".
Rebuilding the technical workforce will require unprecedented collaboration between industry, academia, and government.
With China now outpacing the U.S. in research publications and patent filings, incremental changes are no longer enough. A modern-day National Defense Education Act, combined with the full rollout of the CHIPS & Science Act, could secure America's leadership in science and engineering for the 21st century. The time to act is now.