H1-B Visa Backlog Hurts Semiconductor Industry Growth

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Key Takeaways:

The U.S. semiconductor industry is booming due to the CHIPS Act, creating tens of thousands of new jobs.
Filling these jobs is challenging due to H1-B visa backlogs, critical for importing specialized foreign workers.
Visa caps cause uncertainty for workers and employers, highlighting the need for updated U.S. immigration policies.

How the H1-B Visa Backlog Is Impacting the Semiconductor Industry

Why Is the Semiconductor Industry Booming?

H1-B Visa Backlog Hurts Semiconductor Industry Growth

The semiconductor industry in the U.S. is experiencing rapid growth thanks to the CHIPS and Science Act. President Joe Biden highlighted this progress in a speech last April, emphasizing the creation of new semiconductor manufacturing facilities in Syracuse, New York.

“We took action to make sure these chips were made in America again, creating tens of thousands and I mean tens of thousands of good-paying jobs,” he stated.

The Semiconductor Industry Association estimates that this will lead to 42,000 new permanent semiconductor positions, along with tens of thousands of additional temporary jobs.

What Challenges Are Faced in Filling These Jobs?

While job creation in the semiconductor industry sounds promising, filling these roles presents a challenge. John Cooney, Vice President of Global Advocacy and Public Policy for the semiconductor industry association SEMI, expressed concern:

“We are on the order of tens of thousands of jobs short of filling these when the facilities themselves are ready to come online.”

Many believe that immigrants will play a vital role in addressing this job shortfall. Cooney emphasizes, “We rely heavily on the H-1B program across the industry.”

The H1-B visa program is critical for bringing educated foreign workers into specialized fields. However, it’s a lottery system with far more applicants than the 85,000 visas available each year.

How Does the H1-B Visa Backlog Affect Workers Like Harshad Surdi?

Intel engineer Harshad Surdi is among the 400,000 applicants who applied for an H-1B visa this spring. Surdi, who graduated a few years ago, faced immense uncertainty.

“It was definitely a huge worry,” he said. “I’ve spent almost a decade in this country doing good research. You know, blood, sweat, and tears went to all this. Whatever future I expected out of my time in the U.S. kind of hangs in balance in this visa lottery system.”

Luckily, Surdi secured an H-1B visa for the upcoming year. However, this doesn’t mean the end of his visa struggles. Like many semiconductor engineers from India, he faces a growing backlog for permanent residency or a green card.

“I’ve seen many, many, many people who are disheartened by this and are now just giving up hope,” Surdi explained.

He has witnessed workers move to Europe or Canada due to visa issues, and although he has considered this option, he prefers to remain in Portland.

“I do want to build a life in the U.S. because my job is here, I really like it here,” Surdi added. “But there’s uncertainty of if I can stay in the U.S. — it kind of hinders me in making any long-term plans.”

Is the Visa Cap Adequate?

Despite the increasing demand for semiconductor workers, the H-1B visa cap remains largely unchanged since its creation under the Immigration Act of 1990. Initially set at 65,000 visas, only 20,000 additional visas were added in 2004 for foreign students with advanced degrees from U.S. universities.

U.S. employers have continued to sponsor visas for foreign workers at a growing pace, but the gap between available visas and the number of applications has widened. According to a CATO Institute analysis, around 70% of H-1B visa applications were approved in 2014, while the approval rate for the 2025 fiscal year has decreased to less than 20%.

What Are the Implications for Employers?

Immigration attorney Sandra Sheridan Reguerin of Fragomen, Del Rey, Bernsen & Loewy, tracks how this situation impacts a major semiconductor employer.

“For her client, the number of rejected visa applicants who are in their final year of eligibility for the H-1B has been increasing in recent years,” she observed.

“Even just of those that are at their last-ditch effort, only about 37% of those are getting the visas so the remainder of that, which is 63%, they (employers) have to figure out what to do with these people,” Reguerin added.

Employers face several options: moving workers to different countries, having them return to school to prolong their stay, or finding alternative temporary visas. However, these actions can disrupt operations.

“That investment went into that talent. And now it’s kind of disrupting the work,” she noted.

Are Current Immigration Laws Adequate?

While the U.S. government invests in a new era of semiconductor manufacturing, immigration laws supporting this workforce remain outdated. The H1-B visa backlog exposes the limitations of current policies.

According to VisaVerge.com, the U.S. semiconductor industry’s struggles highlight the need for a more adaptable and supportive immigration system. If you are affected by these issues, consider exploring your options at the official U.S. Citizenship and Immigration Services (USCIS) website.

The CHIPS Act promises growth, but fulfilling its potential depends on how well the U.S. can update its immigration laws to meet 21st-century demands. The semiconductor industry, and those it employs, depend on it.

Learn Today:

Glossary of Terms

H-1B Visa
A non-immigrant visa that allows U.S. companies to employ foreign workers in specialty occupations that require theoretical or technical expertise. This visa is crucial for industries like semiconductors, which rely on skilled foreign labor.
CHIPS and Science Act
Legislation aimed at boosting domestic semiconductor manufacturing in the U.S. by providing funding and incentives to build and expand semiconductor plants, thereby creating thousands of jobs.
Green Card
An identification card that grants permanent residency status to foreign nationals in the United States, enabling them to live and work in the country indefinitely.
Visa Lottery System
Refers to the random selection process used to allocate visas, such as the H-1B program, when the number of applications exceeds the annual cap, creating uncertainty for many applicants.
Permanent Residency Backlog
The significant delay experienced by individuals waiting for Green Cards, particularly from high-demand countries like India, due to a limited number of visas issued annually. This backlog can take years to clear.

This Article In A Nutshell:

The H1-B visa backlog is hampering U.S. semiconductor growth by restricting access to skilled foreign workers. The industry is booming due to the CHIPS Act, yet unfilled positions risk stalling progress. Streamlined visa policies are essential to keep up with new manufacturing facilities and rising job demands.
— By VisaVerge.com

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