Co-ordinated regional action is “urgently needed” to close skills gaps in the semiconductor industry and secure its future.
A new report explores key challenges in talent pipeline development, workforce readiness, and the role of education and training in driving industrial growth.
The report, published by the Welsh Economy Research Unit at Cardiff University as part of the CSconnected Strength in Places Fund (SIPF) programme, funded by UKRI, highlights the “urgent need” for regionally responsive skills development to secure the future of the UK’s semiconductor industry.
The findings highlight a global shortage of STEM graduates entering semiconductor careers and calls for coordinated regional action to close skills gaps, support professional development, and raise awareness of the industry among students, educators, and parents.
Brandon Jones, Skills Manager at CSconnected, said:
“Skills are the foundation of our industry. From primary school outreach to Continuing Professional Development (CPD) for experienced engineers, we’re building a roadmap that connects education to employment to rewarding careers. This report reinforces the need for long-term investment in STEM and vocational pathways, showing how regional clusters like ours can lead the way in shaping a national response.
“This vision is already being put into action through the CSconnected Skills Plan, a strategic framework that outlines how we’re inspiring the next generation, guiding further education graduates into semiconductor careers, and upskilling the current workforce. Further investment is crucial to help us close the clearly evidenced skills gap.”
The report identifies several successful initiatives already underway in Wales, including the development of Level 2 and Level 4 semiconductor qualifications with the Welsh Joint Examination Committee (WJEC), the launch of the Semiconductor Skills Academy, and the delivery of CPD courses through Cardiff University.
However, it also identifies key challenges, including limited apprenticeship availability, low public awareness of semiconductor careers, and the need for stronger public-private partnerships to help expand apprenticeship provision.
While talent supply has been a key driver of growth in the semiconductor industry, shortages in skills and labour have often constrained development even in well-established industrial regions.
In the latest CSconnected annual report, it was identified that insufficient labour and skills supply are the most critical risk factor currently facing the global semiconductor industry.
Dr Mark Lang, Research Associate at the Welsh Economy Research Unit, said:
“Evidence shows that those countries with a sustained commitment to developing relevant talent tend to have seen the strongest growth in their semiconductor industries. For firms, skills shortages can lead to reduced productivity and innovation. Building an appropriate skills-base is not only essential for industry’s expansion, however, it is also critical for broadening varied employment opportunities for local people.”
This new report includes eight key recommendations:
- Investing in STEM education at all levels
- Expanding apprenticeship programmes
- Promoting industry-specific training
- Increasing visibility of semiconductor careers
- Supporting ongoing professional development
- Facilitating international talent recruitment
- Enhancing coordination between education and industry
- Strengthening regional skills ecosystems
Through initiatives such as CSconnected Sparking STEM, which introduces young people to semiconductor technology, and the new Fast-Track Integration Programme for Engineers developed by Cardiff University’s CPD Unit, designed to help engineers from other sectors transition into semiconductor roles, CSconnected and its partners are putting in place programmes that aim to directly address the report’s recommendations.
Alongside new WJEC qualifications, CPD courses, and the Semiconductor Skills Academy, these initiatives aim to create a clear pathway from school outreach to professional reskilling, the organisation said.
But it added that their success and the UK’s ability to build the skills base the industry urgently needs will depend on sustained and significant government investment to secure their long-term future and impact.
