Marketplace Morning Report — “A pipeline problem for advanced chip-making jobs”

Podcast: Marketplace Morning Report
Host: Sabri Benashore (in for David Brancaccio)
Date: August 28, 2025
Duration: ~7 minutes

Overview

This episode highlights a growing challenge in the U.S. semiconductor industry: despite political efforts to boost domestic chip manufacturing, there’s a significant shortage of qualified engineers entering the field. The discussion covers new research from USC's Viterbi School of Engineering, reasons behind declining interest in electrical engineering, and the broader implications for America's high-tech industry. Briefly, the episode also touches on how AI is reshaping job applications and hiring processes.

Key Discussion Points & Insights

1. AI’s Growing Role in Hiring and the Job Search (00:31 – 02:38)

• Job Search Automation:

  • The rise of AI tools allows job seekers to easily and rapidly customize and submit multiple applications.
  • Employers are, in turn, using AI to help sift through the growing number of applications.

• Downsides and New Barriers:

  • Personal connections remain essential. Oliver Golden Egan, a recent graduate, explains:

    “I have not gotten traction on any applications that I have not had some sort of personal connection to.” — Oliver Golden Egan (01:23)

  • AI systems, intended to remove human bias, can introduce new forms of unfairness.

    “The experience that we put these job seekers through, right. Being interviewed by a robot, essentially, I think it's kind of a violation of basic dignity.” — Prof. Arvind Narayanan, Princeton (02:06)

  • Evidence that AI can select top job candidates is shaky at best.

2. The Semiconductor Workforce Shortage and Training Pipeline (02:54 – 06:45)

• Bipartisan Push for U.S. Semiconductor Industry:

  • Presidents Biden and Trump have made domestic chip manufacturing a top economic priority.
  • Despite political focus and funding (e.g., the CHIPS Act), the talent pipeline is lacking.

• Findings from USC Viterbi’s Study:

  • Guest: Andrea Bells, Vice Dean of Transformative Initiatives at USC Viterbi School of Engineering.
  • Researchers analyzed Southern California job postings relevant to semiconductors, including job descriptions and employer data (03:31).
  • Result: There’s a substantial gap at the engineering level, especially for candidates with bachelor’s degrees in fields directly tied to chip production.

• Why the Shortage?

  • Enrollment in electrical engineering has declined steadily for 30 years.

    “Many of the students who previously would have gone into engineering disciplines have been migrating to computer science because they were reading the tea leaves and going where the job openings were.” — Andrea Bells (04:43)

  • Computer science, while recently softening, still attracts most potential engineers.

• Policy Implications & Regional Differences:

  • Training resources should be tailored regionally (e.g., focusing on community colleges near new chip plants).
  • A “one-size-fits-all” solution won’t work nationwide; different areas have different needs and capacities.

• Global Comparison:

  • The U.S. produces far fewer STEM graduates than major competitors, especially China.

    “China produces four times more STEM graduates than we do. We appear somewhere in the top 10, but not at the top, and we're not in the top five.” — Andrea Bells (06:21)

Notable Quotes & Memorable Moments

• On Connection-driven Job Search:

  “I don’t come from a background that’s necessarily, like, replete with those kinds of connections. My mother’s a housekeeper.” — Oliver Golden Egan (01:47)

• On AI Interviewing:

  “Being interviewed by a robot, essentially, I think it’s kind of a violation of basic dignity.” — Prof. Arvind Narayanan (02:06)

• On Declining Interest in Engineering:

  “People don’t major in electrical engineering the way they used to.” — Andrea Bells (04:43)

• On Challenges for U.S. STEM Pipeline:

  “China produces four times more STEM graduates than than we do...we’re not in the top five.” — Andrea Bells (06:21)

Key Timestamps (MM:SS)

• 00:31: News on the Federal Reserve and the role of AI in the job application process
• 01:23 – 02:15: Oliver Golden Egan and Arvind Narayanan discuss the pitfalls of automated hiring
• 02:54: Introduction to the semiconductor workforce shortage topic
• 03:22 – 04:32: Andrea Bells of USC discusses her research methodology and findings on talent gaps
• 04:43 – 05:59: Exploration of declining electrical engineering enrollment and migration to computer science
• 05:28 – 06:14: Bell’s ideas for policy responses, including regionally-tailored training
• 06:21: International comparison of STEM graduate numbers

Conclusion

The U.S. has prioritized growing its semiconductor industry, but a shortage of qualified engineers threatens these efforts. Addressing the gap requires focused regional and policy interventions, especially as the U.S. falls behind other nations in graduating STEM talent. Meanwhile, job seekers—and hiring practices—are caught in a technological evolution, with human connection still a critical factor even as AI enters the recruiting process.