TSMC, the Taiwan-based world’s largest contract chipmaker, said on June 12 that talent was its biggest constraint.

Chief executive CC Wei said that recent rain and government plans to link reservoirs could ease water supply concerns.

The comment shifted focus from a longstanding operational risk for Taiwan’s chipmakers.

Companies have repeatedly warned about shortages of water, power, labor, land, and talent. The industry also faced island-wide water controls during Taiwan’s 2021 drought.

Labor pressure appears structural. Taiwan’s semiconductor industry had 35,167 positions unfilled in early 2022.

Analysts said the shortage spanned chip supply chain. They also cited a smaller talent pool and stronger overseas competition.

President Lai Ching-te said the government was trying to attract and retain foreign talent, including by easing work permit applications. TSMC also continued to expand overseas.

🔗 Source: Reuters

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