Viewpoint
January 28, 2025

VIEWPOINT 2025: Chris Henderson, President, Semitracks, Inc.



VIEWPOINT 2025: Chris Henderson, President, Semitracks, Inc.
Chris Henderson, President, Semitracks, Inc.
At the start of 2024, there was a lot of excitement about growth in the semiconductor industry. However, that excitement has been dampened by lack of demand in a number of markets. With the exception of chips destined for AI and cloud applications, the industry is still suffering from weakened demand for automotive, industrial, mobile, and other applications.

Although the CHIPS Act promised the construction of new wafer fabrication facilities in the US, these funds have been slow to be disbursed, and there is now some question as to whether some of the funding will ever make it to the chip manufacturers, given their economic challenges. High-profile problems at Intel and Samsung are creating a dour mood as we enter the new year.

The good news is that the electronics industry appears to working off the excess inventory from the Covid years, and demand in some sectors, like automotive, is beginning to return. During this past year, there were again a number of high-profile announcements concerning workforce development. It remains to be seen how effective these training programs will be, especially given the fact that two of the larger employers of these potential employees are Intel and Samsung.

Following the US election, US consumer sentiment is now much better, but it is not clear if this improved sentiment will translate into increased purchasing in 2025, given the effects of inflation on the average person’s pocketbook. As we mentioned in last year’s outlook, even though a number of companies made announcements about fab construction, they will likely pause, or even mothball, plans if the economy turns down.

We have seen this play out as we predicted. This could create a mismatch between a new supply of workers coming available and demand from the industry. We still believe there is a longer-term trend in place to “reshore” some manufacturing, and this should create an environment where the industry should be able to absorb new workers in 2025. More flexibility in training the workforce is still needed to address the vagaries of the market and the industry's response to it.

Semitracks, Inc. is positioned to help with this training need. We can scale our training as needed, and provide customized solutions for key gaps in talent and workforce personnel. 2025 should again be an interesting year, given the uncertain demand in the electronics industry, so creative solutions may be necessary for workforce development. We stand ready to help.

Chris Henderson, President
Semitracks, Inc.
http://www.semitracks.com
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