For Michael Walters, the solution to the current crisis facing the U.S. semiconductor industry, as it's projected to face a 67,000-worker shortage, is to bet big on AI and apprenticeships.

For Walters, the chief human resources officer at Samsung Semiconductor, North America, the projected labor shortage shapes every decision he makes regarding the organization’s future.

Walters finds himself at the frontlines of the talent war sparked by the current onshoring boom. He sat down with Stephen Koepp, the editor-in-chief and a co-founder of From Day One, for a fireside chat at From Day One’s San Francisco conference, to discuss a wide range of subjects, from the geopolitics of the new Visa rules to the potential of using AI to improve employee wellness. 

Building a Workforce from the Ground Up

Samsung faces monumental challenges as it moves forward with plans to construct a series of gigafactories in Taylor, Texas, a project that will eventually require about 12,000 employees. Each factory will be the size of ten football fields next to each other, and the site in Taylor has space for nine.

“About a third of the workforce that’s in semiconductor is over the age of 55,” Walters noted, highlighting the challenge Samsung faces as it looks to staff its new factories. Walter’s solution is to attack the talent pipeline from every angle. The organization needs a range of professionals, from PhD-level engineers to technicians who will operate advanced robotics. 

Samsung is partnering up with higher learning institutions, like the University of Texas, to help meet its labor force needs. Both organizations are collaborating to create the first-ever master’s degree in semiconductors. Samsung also teams up with community colleges and trade schools to help develop technical talent, including the creation of apprenticeship programs. 

“We're big believers in apprenticeship programs,” Walters said as he described a pilot Samsung launched with Cristo Rey San Jose Jesuit High School, where most students are prospective first-generation college attendees. “We have five of those students working side by side with our people, essentially serving as interns or apprentices.” These students spend one full day each week during the school year in these roles, a practice Walters views as a direct investment in the local workforce. 

The Immigration Policy Whiplash

Walters also discussed the mixed messaging coming from Washington, D.C., on its immigration policies. The issue is deeply personal for Samsung, given that a significant portion of its workforce is on Visa sponsorships.

“There’s probably nothing more critical to their well-being and to the well-being of their families than this issue,” he said. “In the U.S., 70% of students that are pursuing Master’s or PhDs in electrical engineering are foreign students.”

Walters says the projected 67,000 worker shortage could worsen as it becomes increasingly complex for these students to study or work in the U.S. He notes that while Samsung having a voice in Washington is essential, its visibility must be carefully managed while dealing with a “transactional” administration.

AI’s Promise: From Healthcare to Workforce Efficiency

The AI boom has been a massive tailwind for Samsung, driving demand for its advanced memory chips. Walters is now exploring practical applications of AI for his HR team. He shared how a partnership with the AI platform Avante is already helping employees. 

“This is an AI platform that can integrate into our internal systems and customize to the employee,” Walters said. “So when the employee logs on, the platform knows who they are. In a very easy-to-use bot system, you know, if we were here and I threw out my back and I wanted to go see a chiropractor, I could easily, through the bot, be able to see within a one-mile radius, who are the chiropractors who would be in network, out of network, what would be the cost of that, and get that all in real time.”

Walters views AI as an essential tool for improving employee efficiency and well-being, despite his frustration with vendors who over-promise and under-deliver. He urges employers to stay focused on the basic needs of their employees, amidst the uncertainty caused by mass layoffs and a changing economic outlook. 

“I don’t think that some of those employee issues that were prevalent during the pandemic have necessarily gone away,” he said. Questions like “Am I going to be able to keep my job?” and “Will I get that promotion?” are still on the minds of many employees, and mental health remains essential. 

Walters compared his role in HR to that of a support player in team sports who never scores points but is essential to their team’s success, a lesson he learned during his days as a collegiate rugby player. “We’re enablers. We’re making these things happen,” he said. 

The role of building the human infrastructure for a complex new world has never been more vital for organizations like Samsung at the heart of technological progress. 

Ade Akin covers workplace wellness, HR trends, and digital health solutions.

(Photos by David Coe for From Day One)