The Continued Case for Diversity and Inclusion in the Semiconductor Workforce

By Margaret Kindling, Senior Program Manager for DEI at the SEMI Foundation

The search for talent continues to be top of mind for companies along the semiconductor ecosystem. With the industry facing fierce competition for talent from a broad range of technology and manufacturing companies, developing a diverse workforce and creating greater inclusion is crucial to the success of the semiconductor industry for years to come.

It’s been 10 years since McKinsey & Company, along with LeanIn.org released its Women in the Workplace survey. This year’s survey, entitled 50 Years Away from Reaching Parity in the Workplace, reports some gains for women, such as an increase in the number of women in executive positions. However, the report highlights how women’s experiences sometimes are the same or worse than a decade ago.

According to The World Bank, women make up less than a third of the world’s workforce in technology-related fields. In the U.S., the U.S. Chamber of Commerce reported that the ratio of men to women in the workforce is heading towards parity. Women now account for 46.8% of the U.S. labor force, and this number is predicted to rise to 47% by 2031. Yet, women held only 35% of tech jobs in the U.S. at the end of 2023.

While some companies have taken action to support women’s advancement by removing bias from hiring and providing flexible work hours and caregiver support, the 2024 Women in the Workplace survey shows that many companies have scaled back programs designed to advance women.

“Fewer companies say gender and racial diversity are priorities for the organization,” according to Women in the Workplace 2024. “Companies are reporting declines in career development, mentorship, and sponsorship programs geared toward women, as well as recruiting and internship programs focused on women.”

Turning to ethnic diversity in the workforce, Brookings Institute projections show the U.S. population becoming more diverse, reaching a non-white majority by 2045. Populations of Black, Asian, and Hispanic and Latino Americans are all expected to rise, with Latinos expected to account for 30% of the labor force by 2060 according to the U.S. Bureau of Labor Statistics. Even as the workforce overall becomes more diverse, tech and other industries are not keeping pace.

DEIB (Diversity, Equity, Inclusion and Belonging) is fundamentally about creating opportunities for people who typically lack access to them or have been historically excluded. This includes women, people of color, different-abled individuals, and others. According to a Pew Research Center survey, 56% of employed U.S. adults view focusing on increasing DEIB at work as a positive effort.

Multiple surveys have shown that inclusion and diversity are good for business. Diverse teams drive innovation, creativity, and better decision-making. Companies with inclusive cultures outperform their peers. Creating a sense of belonging through employee resource groups and other activities can improve employee morale: When employees feel seen, heard, and valued, they’re more engaged and motivated. Inclusive workplaces foster a sense of belonging, leading to higher job satisfaction.

However, opinions on DEIB vary significantly based on demographics and political affiliations. It’s essential to recognize that DEIB is a fundamental shift toward creating more fair and representative environments. Rather than abandoning DEIB programs aimed at hiring and retaining diverse talent among teams, leadership and corporate boards, companies need to continue to embrace diversity initiatives and its many benefits. “Having a workforce that is diverse and representative of your stakeholders is good for business,” said Mark Cuban, American businessman, investor and entrepreneur.

Over the past decade, numerous reports as well as business leaders such as Cuban cite the benefits of diversity and inclusion. In parallel to Women in the Workplace, McKinsey’s Diversity Matters series of reports provide a global perspective on the positive relationship between leadership diversity and company performance over a span of almost 10 years. According to the latest report in the series, companies with representation of women in leadership positions exceeding 30% are significantly more likely to financially outperform those with 30% or fewer.

With estimates showing Generation Z will make up 30% of the workforce by 2030, and as Baby Boomers continue to retire, it’s important to note that Millennial and Gen Z workers tend to prioritize workplaces that have clear and proactive practices when it comes to societal issues. Younger professionals look more favorably at companies which are genuinely committed to environmental and social issues and good governance practices, including composition of company boards and executive leadership. Such companies are more likely to attract and retain talent from the younger generations.

For future success, companies need to remain committed to supporting those who are under-represented along the entire semiconductor ecosystem. Despite progress, challenges persist. Economic uncertainty, corporate belt-tightening, and legal battles have contributed to slowing down DEIB initiatives, according to the Harvard Business Review. Yet, organizations continue to champion these efforts because they recognize the benefits to their bottom line, fueling innovation, and attracting and retaining talent.

The SEMI Foundation continues to support its members in their DEIB efforts. Initiatives and programs such as Semiconductor PRIDE, SEMI Vetworks and the upcoming Women in Semiconductors provide forums for employees and industry leaders to discuss topics which impact under-represented talent in the industry. By sharing best practices, acknowledging the challenges that exist, and encouraging allyship, we can create a more sustainable and diverse workforce in the semiconductor industry.

Margaret Kindling is Senior Program Manager for DEI at the SEMI Foundation. She manages Women in Semiconductors, Semiconductor PRIDE and workforce development programming at various SEMI expositions, including SEMICON West.