Episode 104: CHIPS and Tips — Strategies for Semiconductor Industry Employers

Episode 104: CHIPS and Tips — Strategies for Semiconductor Industry Employers

This episode of the BAL Immigration Report is brought to you by BAL, the corporate immigration law firm that powers human achievement through immigration expertise, people-centered client services and innovative technology. Learn more at BAL.com.

In this week’s episode, BAL’s Michelle Gergerian and Victoria Ma discuss strategies employers can use to best position themselves for attracting and retaining top talent in the semiconductor industry.

From Dallas, Texas, I’m Rebecca Sanabria.

The advancements made in semiconductor research, design and manufacturing over the last 65 years by the world’s top talent have led to some of the most transformative innovations in history.

According to the Semiconductor Industry Association, by 2032 the United States is projected to experience the highest rate of semiconductor manufacturing growth in the world, more than tripling its capacity. Reinforcing chip supply chains in the U.S. — from R&D to distribution — offers tremendous opportunities as well as significant challenges, including deficits in the talent pipeline.

How can employers in the semiconductor industry stay competitive?

From our Boston office, BAL partner Michelle Gergerian and associate Victoria Ma discuss strategies employers can use to best position themselves for attracting and retaining top talent in the semiconductor industry.

[The following transcript has been slightly edited from the original audio for clarity.]

Gergerian: Thanks so much for joining me today, Victoria. We are here today to discuss the exciting world of semiconductors, specifically what employers in the industry can be doing to best position themselves in a time of what I think is really explosive growth, especially in light of a new presidential administration on the horizon.

Ma: I’m excited to be here. I agree. I think there are a lot of changing parts, and we have been working together many years with employers in the semiconductor industry. It’s been great collaborating with you, especially on some of the bigger challenges and trends we’re seeing in this industry.

Gergerian: For sure. You know, there’s definitely a lot happening right now in the industry, because we’re talking about an industry that is really just racing to keep up with exponential growth. The demand for talent in this area is really just unprecedented.

[In 2023], the Semiconductor Industry Association, or the SIA as we call it, they released a study showing that the United States is facing a significant shortage of positions — like technicians, computer scientists, engineers — and that by 2030 the semiconductor industry is projected to experience a shortfall of 67,000 skilled workers, which is huge.

Another report from the SIA shows that more than 50% of master’s engineering grads and more than 60% of Ph.D. engineering grads in the U.S. are foreign born. This is a very timely conversation, and being able to tap into the global talent pool is going to be a critical solution to address the U.S. workforce challenges.

Victoria, with the workforce shortage as the backdrop, how do you think that current legislative and policy efforts are going to impact the industry?

Ma: I’d like to start with the CHIPS and Science Act. The CHIPS and Science Act is a landmark U.S. legislation, and it was passed two years ago in 2022 to boost domestic semiconductor manufacturing and research. This act aims to reduce America’s dependence on foreign-made chips and ensure the U.S. stays at the forefront of semiconductor technology, which, as we all know, is absolutely vital for national security, economic growth and technological innovation.

The CHIPS Act sits right at the intersection of necessity and opportunity, especially now. According to the U.S. Department of Commerce, over the last two years we have seen more than $395 billion in investments in the semiconductor and electronic sectors, along with the creation of over 115,000 new jobs. So that’s an unprecedented impact, and this is huge.

Because of these investments, the Department of Commerce announced that the U.S. is on track to produce nearly 30% of the world’s most advanced chips by 2032. And in addition to this impact, the CHIPS Act also fosters groundbreaking research in areas like artificial intelligence, which will definitely help drive the next wave of innovation.

We are at a critical juncture, particularly for industries dependent on semiconductor manufacturing and advanced technology, there’s been conversations that President-elect Trump may look to repeal the CHIPS Act.

Michelle, what are your thoughts on this, and what does the future hold for the CHIPS Act and how might it impact immigration programs in this industry?

Gergerian: It’s a great question. I don’t know that any of us truly know what the future holds, to be honest. We’re definitely approaching some uncertain times right now, and not just with semiconductors but really with industries across the board. But we do know that very recently, the House Speaker Mike Johnson has spoken publicly about possibly repealing the CHIPS and Science Act.

As you can imagine, that sparked some conversations and some debate across the industry because if that happens, it could have significant implications. Especially to your point as the U.S. continues to develop and manufacture chips in areas like AI, healthcare, automotive, etc.

Whether or not the act is repealed, one thing is clear: The need for the skilled talent in fields like semiconductor engineering and research and manufacturing, it’s not going anywhere. It’s not going away. So as companies continue to innovate and they continue to grow, the competition for the top talent is really only going to intensify. While I think it’s unclear which specific policies the president-elect is going to prioritize, I do remain hopeful that the demand for talent will continue to drive support for the CHIPS Act during Trump’s second term.

Victoria, given that we are in a period of uncertainty, what can employers do or be prepared for in the coming year just to make sure that they’re attracting and retaining the talent that they need?

Ma: With the shifting political dynamics, companies now need to navigate the complexity of both recruitment and employee retention, as well as ever-changing immigration policies, just to stay competitive in a fast-moving industry. I’d like to just to break down a couple of key strategies that can help organizations thrive in this uncertain environment.

First, I would say just to broaden recruitment efforts beyond U.S. talent pools and tap into international talent, as you mentioned, Michelle, earlier. Looking at the numbers from the Semiconductor Industry Association’s report — that over 50% of the U.S. grad students in engineering are foreign-born — this is a huge talent pool. And I think it’s advisable for employers to consult with immigration counsels and firms, not only to explore these options but also to stay informed about evolving policies and challenges in immigration. This is particularly important as employers, they may face budgetary constraints or other business-related considerations.

And secondly, I think would be to prioritize employee retention. Attracting talent is important, but keeping it is key. Companies invest in their employees all the time. Over the past several years, we have seen trends of companies seeking long-term visa solutions for their foreign national employees by exploring green card options. For employee retention, implementing a contingency analysis process can be beneficial, as temporary visa categories, as we all know, they typically have very limited durations. This approach would allow employers to better anticipate potential challenges and to prepare for any changes that may arise in the coming years.

When it comes to temporary visa options, the first to come to mind is the H-1B. H-1B is by far the most sought after among semiconductor companies. The H-1B visa includes a broad spectrum of engineering roles, including electrical engineers, electronics engineers, industrial engineers and logistic engineers.

The H-1B program in general allows employers to temporarily hire qualified foreign workers for up to six years. One of the key benefits of the H-1B visa is that it offers the possibility of extending the worker status beyond the six-year limit if the foreign employee has reached certain milestones in their green card process.

That said, there are some notable challenges, however, for this visa category. For example, timing and availability are major factors to consider for employers in this industry. There are only 85,000 H-1B visas available for each fiscal year and, as we all know, the H-1B visa, they are subject to a registration process and a lottery system each spring, which means that not all applicants are guaranteed a spot.

So for employers looking to register their employees in the H-1B lottery coming in early next year, it’s crucial to plan ahead and to have contingency strategies in place in case their employees aren’t selected. This uncertainty can make long-term workforce planning a little bit more complex, but it’s part of this visa category.

Gergerian: Totally understand that. And thanks so much Victoria for that. You know, the H-1B is obviously a great visa, widely used by employers in the semiconductor industry. But as you say, there’s some limitations, right? Some are just not fortunate enough to get selected in the lottery. So is there another visa category that you see typically in the semiconductor industry?

Ma: Yes. The L-1 intracompany transfer visa is the second most commonly sought after visa type for global semiconductor companies that have foreign entities for foreign offices overseas. The L-1 visa allows U.S. employers with overseas offices to transfer employees into either managerial positions for that one visa, L-1A visa, or positions requiring specialized knowledge with L-1B visa from their foreign offices to their U.S. office.

To qualify, employees must have at least one year of experience in a managerial or specialized knowledge role with the foreign entity and within the three years prior to the L-1A petition filing. For example, semiconductor companies like the companies that we have been working with in the past several years, they often use L-1 visas to bring over specialized expertise like device fabrication technology from their overseas offices.

For companies that need to move their managers between time zones to better overseas U.S.-based teams and hit those tight project deadlines, an L-1A would be a great option. In terms of the visa durations, the L-1A visa for managers can be renewed for up to seven years, while the L-1B visa for specialized knowledge employees has a five-year limit. If an L-1B employee takes on more managerial responsibilities during their time in the U.S., they may be able to switch to the L-1A status, which gives them an additional two years of employment authorization.

Besides the H-1B and L-1, there are some other visa options like the O-1 visa for individuals with extraordinary ability and some nationality specific nonimmigrant visas like the E-3 for Australian citizens and TN for Canadian and Mexican citizens.

Since we’re running short on time, I won’t dive in too deep into the details right now, but listeners are welcome to check out our article on BAL.com.

Gergerian: Thanks, Victoria. In addition to our article, I actually also wanted to give a quick plug for our Government Strategies group. The reason for that is because everything that we talk about, semiconductors or across the industry, we’re talking about how it overlays onto this new administration that is on the horizon.

The Government Strategies group here at BAL is a practice group that is comprised of former government officials, and they’re constantly releasing new content specifically on what employers can expect during this period of transition and with the new administration. We can link to their page but their content can be found at the Election Resource Center at BAL.com.

So I think that wraps up today’s episode, and if anybody has any questions or wants to dig deeper into any of these topics, don’t hesitate to reach out.

Read the article referenced, U.S. visa options for foreign nationals in the semiconductor industry, and visit the Election Resource Center at Bal.com.

And now, the top U.S. and global immigration news.

The Department of Labor announced on Dec. 20 additional guidance on the 2024 Farmworker Protection Final Rule, concluding that use of the current forms that went into effect on June 28, 2024, is “infeasible in the short term” and employers are instructed to use applicable forms that went into effect on June 27, 2024.

U.S. Citizenship and Immigration Services announced it will publish a revised edition of Form I-129, Petition for a Nonimmigrant Worker, on Jan. 17, 2025. The revised form will align with the H-1B modernization final rule and the H-2 modernization final rule.

In global news, all eligible non-European travelers transiting or traveling to the U.K. for tourism, family visits, business meetings, conferences or short-term study for six months or less will require an electronic travel authorization prior to travel, effective Jan. 8, 2025.

As a reminder, the Marom Electronic Travel Authorization — Israel (ETA-IL) is now in effect, and all tourists and business travelers from visa-exempt countries must obtain an ETA-IL form approval before arriving in Israel.

Find all of our news at BAL.com/news. Follow us on X at @BAL_Immigration. And sign up to receive daily immigration updates in your inbox at BAL.com/newsletter.

The BAL Immigration Report is moving to a biweekly schedule, broadcasting twice a month, plus special segments for insights on breaking news related to corporate immigration. We’ll see you soon!

I’m Rebecca Sanabria. Thanks for listening.

Copyright

The BAL Immigration Report is provided by BAL. Copyright 2025 Berry Appleman & Leiden LLP. All rights reserved. Digital redistribution to the public is permitted only with express written permission of Berry Appleman & Leiden LLP. This report does not constitute legal advice or create an attorney-client relationship. Visit bal.com for more information.