SKILLS SHORTAGE Why the European power electronics industry is still struggling to attract and retain top talent

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The power electronics industry is helping to forge our technological future. However, a shortage of skilled workers proved to be a major headache throughout 2022 and 2023. Is the European power electronics industry still fighting to find the staff it needs? We scrutinize the reasons why it’s so difficult to find the people this vital industry needs.

Things should be looking very good for the future of the European power electronics industry. The worldwide chip shortage has abated, fabs are back on track, and increased demand looks set to send semiconductor production levels skyrocketing. Huge investments in renewable energy are being made and countries are embarking on major decarbonization projects.
Unfortunately, there is a major obstacle to the continued growth of the power electronics industry: people. The industry now has an insatiable hunger for skilled workers and there just aren't enough highly trained and experienced engineers to go around.

The power electronics industry is spearheading the advancement of technology. It’s no exaggeration to say that the lack of available talent will impede humanity’s ability to solve our most pressing issues. As our article in early 2023 showed, the skills shortage has been a problem for some time now. But why is this such a crucial sector still crying out for skilled workers more than a year later?

In Europe and across the globe, it seems that the power electronics industry may be a victim of its own success. And, perhaps, suffers from something of an image problem.

Competition for skilled power electronics engineers is intensifying

The European power electronics industry is experiencing a massive upswing. Consumer demand for smartphones and products incorporating IoT technology has increased. The automotive industry is electrifying, and the aerospace industry is expanding. Rapid advances in AI and machine learning technology have spurred a massive worldwide demand for accelerator chips and logic processors. Countries throughout Europe have launched various semiconductor production initiatives as a result of the European Chips Act. The European Union is pushing an expansion of solar and wind power to reduce the reliance on fossil fuels.

These developments are driving a massive surge in the need for highly skilled power electronics professionals. In the solar energy field alone, the European Union will require over one million skilled workers by 2030 in order to meet its targets. The goal of the EU Chips Act is to produce 20 % of the world’s semiconductors by 2030.

The critical lack of skilled workers is standing in the way of these ambitious targets. Power electronics professionals are in huge demand, not just in Europe but also in the USA and across Asia, India, China, and Australia. Experienced engineers and even new graduates can pick and choose from thousands of companies worldwide. It’s never been more difficult for the power electronics industry to attract and retain top talent.

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Experienced electronics engineers are retiring

As demand for skilled power electronics experts increases, the existing talent pool is shrinking. Engineers belonging to the so-called Boomer generation are reaching retirement age and there simply aren’t enough younger graduates to replace them.

Lauren Hart of MRL Consulting was quoted in an article in EE Times as saying: “You’ve got all these incredibly skilled engineers, but they’re going to be retiring soon. You’ve got a whole generation of people who are getting ready to retire, and there’s no one to step into their shoes and fill that gap. You can’t find that sweet spot of engineers with seven to 15 years of experience because they’re just not there.”

Ms. Hart was discussing the skills shortage in the USA, but her words are just as applicable to the European power electronics industry. Studies have shown that the overall labor supply in the European Union is set to decrease by an average of 0.3 % every year due to the aging population.

By 2070, the European Union will be facing a 16 % shortfall, which equates to 32 million workers that will be needed to meet demand. With the push towards renewables and the investment in semiconductor manufacturing, a large percentage of these workers will be needed in the power electronics industry. In Germany alone, a report from the German Economic Institute showed that the country one-third of its skilled electronic engineers will retire in the coming decade.

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Fewer young people are studying to become power electronics engineers

Despite the demand for power electronics experts, the industry is having something of an image crisis. In 2022, a study by the German technology organization VDE (Association for Electrical, Electronic, and Information Technologies) found that many young people were disinterested in pursuing a power electronics career. The industry itself was viewed as unappealing with little room for growth or innovation.

Illustrating the industry’s concern, Dr. Michael Schanz, the director of the VDE Committee for Study, Work, and Society said: “Young people want to shape the future – electrical engineering is an excellent way to satisfy this need. If we are unable to get that across, the major issues of our time will be at risk.”

It’s also difficult to attract young women to the power electronics industry. In general, women have been traditionally underrepresented in STEM fields. While this trend is getting better, only 35 % of STEM graduates in the European Union are women.

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How can Europe overcome the skills shortage?

Just as at the beginning of 2023, the European power electronics skills shortage is still a major issue in 2024. Attempts to solve the crisis are underway, such as the development of the European Chips Skills Academy. However, these initiatives will take time to bear fruit.

More immediate action is required if the European Union is to find the talent it needs. Our article in 2023 recommended making changes to visa restrictions and enhancing skills recognition to improve the mobility of skilled workers. This recommendation is still valid. Improving immigration rates could help to make up for the shortfall in power electronics professionals in the short term. But there are still long-term issues to contend with.

As a whole, the European power electronics industry needs to find better ways to attract young people. It needs to demonstrate to young people that it is an inclusive, dynamic employer that can provide varied and interesting careers for young professionals. Just as we stated last year, only time will tell.

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