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Nvidia's AI chip boom could boost US semiconductor industry jobs

Feb 29, 2024 - businessinsider.com
The rising demand for AI chips, such as Nvidia's H100 GPUs, is expected to create jobs across the semiconductor industry, benefiting chip designers, manufacturers, and suppliers. The AI chip market, projected to reach $50 billion in 2024, could account for half of the entire chip market by 2027. Companies like TSMC, GlobalFoundries, Intel, AMD, Amazon, Meta, Samsung, Google, IBM, Lam Research, Applied Materials, and KLA Corporation could all benefit from this boom. Nvidia, while not manufacturing its own chips, could also diversify its manufacturing ecosystem, potentially benefiting the US semiconductor industry.

However, the industry faces challenges, including a potential worker shortage. The Semiconductor Industry Association projects nearly 115,000 new semiconductor jobs in the US by 2030, but current college degree completion rates suggest about 67,000 of these positions could go unfilled. To address this, community colleges and universities are partnering with semiconductor companies to ensure a sufficient supply of skilled workers.

Key takeaways:

  • The AI chip boom could create jobs for chip designers, manufacturers, and suppliers across the semiconductor industry, with Nvidia and TSMC being the dominant players in the AI chips space.
  • The market for AI chips is projected to grow from close to zero in 2022 to $50 billion in 2024, potentially accounting for half of the entire chip market by 2027.
  • Other companies that could benefit from the AI chip boom include tech companies like Amazon and Meta, established industry players like Intel and AMD, and companies that sell specialized semiconductor equipment like Lam Research, Applied Materials, and KLA Corporation.
  • Despite the job growth, there are concerns about a potential worker shortage in the semiconductor industry, with an estimated 67,000 of the projected 115,000 new US semiconductor jobs by 2030 at risk of going unfilled given current college degree completion rates.
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