Taipei: Taiwan's semiconductor industry faced a labor shortage of 34,000 workers as of May this year, according to a report released Monday by the 104 job bank and the government-sponsored Industrial Technology Research Institute (ITRI).

According to Focus Taiwan, the shortages were driven by the industry's ongoing expansion, bolstered by increased investment in advanced processes. The 2025 Semiconductor Industry Talent Report identified three main job categories in demand: "production/quality control/environmental safety," "research and development," and "operations/technical support and maintenance."

Job openings in production, quality, and environmental safety grew from 5,600 in October 2023 to approximately 10,000 in May 2025. Additionally, demand in the research and development category increased from 6,000 in 2023 to 9,316 in May of this year.

The operations/technical support and maintenance category saw job openings rise from 4,300 in October 2023 to 7,240 in May 2025, representing a 67 percent increase. This growth reflects the rising demand for equipment operators and maintenance personnel, driven by the expansion of advanced processes and advanced packaging production lines.

Taiwan accounted for 68.8 percent of the global foundry market in 2024 and led the world in IC packaging and testing with nearly 50 percent of the market, according to Jeff Lin, general director of ITRI's Industry, Science and Technology International Strategy Center. The country is also a significant production base for chips at 7 nanometers and below, producing up to 83 percent of the world's AI chips.

From 2010 to 2024, the output value of the IC industry tripled, while the number of newborns in Taiwan declined by about 20 percent. This trend highlights concerns over a potential talent gap as the high-tech sector continues its rapid growth. Recruiting talent, particularly in operations/technical support and maintenance, has been challenging due to the need for shift work and a focus on hands-on, on-site skills.

The report also analyzed the sector's salary structure, revealing that among non-managerial positions, analog IC design engineers had the highest median annual salary at NT$1.78 million (US$60,320), followed by digital IC design engineers at NT$1.57 million.