Author: Saif Islam
Over the past few decades, Silicon Valley has expanded so much in size that it now stretches nearly 150 miles, from the southern region of San Jose, past San Francisco, to the north of California’s capital, Sacramento.
Silicon Valley is considered the world’s largest and most influential technology and startup economic zone. There is an unparalleled concentration of tech companies here, ranging from industry giants like Apple, Google, and Facebook, to thousands of startups and venture capital firms. In recent decades, this region has attracted the attention of political and economic leaders worldwide for its innovation, entrepreneurial activities, and significant contributions to the global technology industry.
Beyond high-tech companies, the activities of research institutions, several universities (such as Stanford and the University of California), and a strong network of venture capital firms have made this region a global hub for technology and startup activities. Other regions around the world, like Shenzhen in China and Bengaluru in India, are following a similar path in technological advancement.
For many years, this type of chip manufacturing has not been happening on American soil, even though the microchip revolution actually began in Silicon Valley in the late 1960s. Over the last three decades, this work has quietly moved overseas to Far Eastern countries, some of which are no longer allies of America. Currently, ensuring hardware security through domestic microchip production is one of the highest priorities for the government. For this reason, many multinational companies are planning to manufacture chips either in America or in friendly countries (such as Vietnam, Malaysia, India, South Korea, Japan, Mexico, etc.) and export them to the U.S. In 2022, America imported nearly $420 billion worth of semiconductor chips.
German company Robert Bosch GmbH has annual revenues close to $100 billion (almost equivalent to Bangladesh’s total foreign debt). They have around 450,000 employees worldwide.
Recently, Bosch decided to manufacture microchips in America, and to that end has acquired the assets of a former U.S. chip manufacturer, TSI Semiconductors Corporation (formerly Telefunken Semiconductor), in Roseville—a Sacramento suburb about 30 miles from my city, Davis. This $1.5 billion investment deal includes a major modernization initiative.
However, finding skilled personnel is now the toughest challenge for Bosch.
How does Bosch plan to solve this issue?
Bosch is now collaborating with all universities, community colleges (which offer 2-year associate degrees), and high schools in greater Sacramento to train engineers and technicians. New departments are being created in universities and community colleges, fully equipped hands-on learning labs are being built, and Bosch officials are working with all companies, NGOs, and professional clubs able to provide technical assistance.
The Greater Sacramento Economic Council (GSCR) is providing full support for these initiatives. This organization can unite everyone in the region to work on projects collectively. Their influence and credibility are somewhat like our Dr. Yunus, and they are harnessing this power to the fullest. In July, their leadership joined Semicon West in San Francisco together to understand how semiconductor technology can help create new jobs and reduce economic inequality in this region. The youthful enthusiasm of GSCR’s seasoned leadership impressed me deeply. I canceled all my other programs and spent one afternoon talking and discussing with them at the Semicon West conference.
The Office of the California Governor has provided funding to the four CITRIS campuses (Berkeley, Davis, Santa Cruz, and Merced)—where I work—which enables us to offer internships to 100 early-stage undergraduate students every year so they can receive training in various fields in industry and university labs. Among these, semiconductor microchip manufacturing is the most important.
Many workforce training grants have been launched by both the U.S. federal government and the State of California. Nearby and distant tech-based companies and national labs are dedicating their time and lab resources to address labor shortages. Similarly, Intel, Micron, Texas Instruments, and many other companies are supporting universities and colleges to strengthen workforce training. For a large part of July and August this year, I was involved in planning several such activities.
California is America’s wealthiest state, surpassing even India or the United Kingdom in terms of GDP. Yet, poverty and inequality continue to rise in its capital and surrounding cities. I believe that diligent efforts from countless faculty members, teachers, engineers, workers, and ordinary people from federal, state, public-private companies, national labs, universities, and community colleges will make this workforce training a key driver of social and economic progress in the region.
Saif Islam is the Director of the Center for Information Tech Research in the Interest of Society-UC Davis and a Professor at the University of California, Davis.
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