The semiconductor shortage continues to be a concern for most organizations around the world. While investments in new plants have been made to help increase supply, there is still a concern that there might not be sufficient skilled employees in the field.

In fact, the demand for skillsets in semiconductor and its related industries have been increasing, especially with new factories being developed. Despite technology enables most of these plants to be automated, the reality is, semiconductor companies need a physical workforce in areas of research and development and such.

OMICRON AFFECTS MICRON TECHNOLOGY AND SAMSUNG’S CHIP OUTPUT

Aaron Raj | 30 December, 2021

For example, in the US alone, the semiconductor industry will need to hire between 70,000 and 90,000 additional workers by 2025.  Reports also show that countries like Taiwan, which is currently the global powerhouse of integrated circuit manufacturing, has an average monthly deficit of specialized workers of approximately 27,700 employees.

As such, semiconductor companies have been investing and partnering with universities and learning institutes to develop new talents. In Malaysia, Micron Technology has announced an investment of RM1 million to strengthen collaboration, research and development projects with local universities over the next five years. The funding will go towards grants supporting research in the areas of semiconductor materials, smart manufacturing and artificial intelligence which are key to the advancement of tech manufacturing in the country.

“Micron leads the industry in both NAND and DRAM technology and Malaysia is critical to our global manufacturing footprint. We hope the funding and collaboration with local universities will strengthen the local semiconductor ecosystem, advance R&D and deepen science, technology and engineering skills in the local talent pool,” said Amarjit Singh Sandhu, corporate vice president and country manager of Micron Malaysia.

University Sains Malaysia (USM) will be the first university partner to receive funding from Micron. The partnership is set to create new growth opportunities between various institutors and companies. Further to that, the partnership between Micron and USM is also in line with the focus area of the National Fourth Industrial Revolution’s policy,and supported by national policies such as the 12th Malaysia Plan and Wawasan Kemakmuran Bersama 2030.

Amarjit also pointed out that Micron foresees opportunities to accelerate the next level of growth, given the increasing global market demand for memory and storage products. Hence, Micron has already invested in a 52.6-acre Center of Excellence for solid state drives assembly in Batu Kawan Industrial Park, Penang which is scheduled to begin operations by the end of 2022.

“The RM1 million grant funding to local universities by Micron today further reinforces the company’s commitment to using its leadership, influence and resources to create positive change, on top of its relentless efforts in employee wellbeing, sustainability, and corporate social responsibility,” said Chow Kon Yeow, chief minister of Penang, who witnesses the signing ceremony.

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After weighing its options anew, the Asian tech giant ultimately failed yet another self-imposed deadline to complete what is estimated to be a US$17 – US$18 billion dollar deal.

Toshiba’s microchip business is widely regarded as the second largest in the world, with the firm providing NAND chips for various tech manufacturers. The Japanese firm is so prominent in the NAND industry, it is only surpassed by Samsung Electronics, which is the largest tech company in the industry.

With this, it was no surprise to see several prominent business players step forward when Toshiba announced it was looking for potential buyers for its microchip business. So far, the Japanese tech firm has narrowed its suitors down to three – a consortium of firms led by Bain Group, Western Digital and Foxconn.

California-based Western Digital is a long-standing joint venture partner in Toshiba’s main semiconductor plant in Japan. Source: Shutterstock

Over the past few months, it seemed like Toshiba was about to seal the deal with the Bain Group, a consortium of firms that included Japanese financial juggernauts Innovation Network Corporation, the Development Bank of Japan and South Korean firm SK Hynix. Back in June, Toshiba formally announced that it was already entering exclusive talks with the conglomerate.

Things took a rather dramatic turn, however, after Western Digital, an American tech giant, protested over Toshiba’s seemingly impending deal with the Bain Group. Western Digital and Toshiba currently share ownership of a huge NAND facility in Japan, though the former has a minority stake. According to the American firm, Toshiba does not have the right to sell its microchip business without consulting Western Digital first.

SEE ALSO: Delayed Toshiba earnings report reveals $8.8b in losses

Facing increasing pressure from Western Digital, Toshiba ultimately abandoned its talks with the Bain Group. In a rather ironic twist, Toshiba and Western Digital ended up resuming their attempts to reach a deal, culminating with this week’s meeting.

Earlier this week, Western Digital CEO Stephen D. Milligan landed in Japan. While the reasons behind his trip were not fully disclosed by the company, speculations were abounding that the executive headed over to Japan in an attempt to seal the deal with Toshiba.

Toshiba Corp CEO Satoshi Tsunakawa bows at the start of a news conference at the company’s headquarters in Tokyo, Japan. Source: Reuters.

Thanks to the last-ditch efforts of the Bain Group and Foxconn, however, Western Digital’s latest strategy did not bear fruit. Bain, for its part, opted to bring Apple into the mix, sweetening the deal for Toshiba. Foxconn, on the other hand, teamed up with Japan’s SoftBank Group and Google in an attempt to attract the Japanese microchip maker.

SEE ALSO: Toshiba reportedly settles on Japan-led bidder for semiconductor business

For now, the fate of Toshiba’s microchip business remains in limbo. As stated in the company’s official statement last Thursday, Toshiba, at least for the meantime, would continue negotiations with all possible bidders in an attempt to meet a preferable end for the lucrative microchip business.

“Toshiba intends to continue negotiations with possible bidders to reach a definitive agreement which meets Toshiba’s objectives at the earliest possible date, and will announce material changes in status in a timely manner.”

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