Higher tariffs on Chinese computer chips may not lead to more U.S. engineering jobs

The Joe Biden administration hiked tariffs on Chinese-made semiconductors last week. It was the latest in a series of trade restrictions the U.S. has placed around its chip industry.

Among the reasons cited: to create opportunities for more high-paying jobs here in the U.S. But for chip engineers, that may not be the case, a new study from the National Bureau of Economic Research finds.

Recruiting the best and brightest to work in the semiconductor industry is a global game, according to Umit Gurun, a finance professor at UT Dallas, who co-authored the study.

The trade restrictions sent a signal to future chip engineers studying here in the U.S., he said. “If you come and get this degree, you will be limiting yourself to the U.S. market.”

Many students don’t want that limitation. The study found that hiring of semiconductor engineers in the U.S. is down 9% since 2018. 

That’s driven by a drop in entry-level positions normally filled by recent graduates. The 2022 Chips and Science Act has earmarked money to build up this workforce.

In a still tight job market, “we don’t actually have a good sense of who’s available,” said Christophe Combemale, who researches engineering and public policy at Carnegie Mellon.

More work is needed, he said, to figure out where to find new chip workers — whether from engineering schools, other industries or other countries.