August 5th, 2024

US chip factory workers say a struggle to survive on wages as industry booms

Workers at U.S. semiconductor factories, particularly at Analog Devices Inc., demand higher wages and safer conditions, citing low pay and company prioritization of stock buybacks over employee welfare despite industry profits.

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US chip factory workers say a struggle to survive on wages as industry booms

Workers at semiconductor factories in the U.S. are expressing significant dissatisfaction with their wages and working conditions, despite the industry's current boom. Employees at Analog Devices Inc. (ADI) in Oregon are advocating for better pay, safer working environments, and an end to mandatory shutdowns that force them into unpaid leave. Many workers report struggling to make ends meet on their current salaries, which average around $21 per hour, while they are pushing for a minimum wage of $27 to afford living expenses in the Beaverton area. The situation is exacerbated by the fact that ADI has received substantial federal funding through the Chips and Science Act, yet continues to prioritize stock buybacks and executive compensation over employee welfare. Workers have formed a coalition, supported by various unions and environmental organizations, to demand improvements. They highlight the dangers of their work, particularly when handling hazardous materials without adequate safety measures. The disparity between the industry's financial success and the workers' struggles has led to calls for accountability and fair treatment from companies benefiting from public funds.

- Semiconductor factory workers are struggling to survive on low wages despite industry growth.

- Employees at Analog Devices Inc. are demanding a minimum wage of $27 per hour.

- Workers are advocating for safer working conditions and an end to mandatory shutdowns.

- The company has prioritized stock buybacks and executive compensation over employee welfare.

- A coalition of unions and environmental organizations supports the workers' demands for better treatment.

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By @duxup - 6 months
Article is kinda all over the place.

One line notes that TSMC made a deal with the local union, so presumably they're doing ok?

Later in another very specific example:

>Workers are pushing for a $27 minimum wage at the semiconductor plant, which they say is the minimum required to live in the Beaverton area. They are currently paid around $21 an hour.

So I guess the title is just about the Beaverton location? Or at least that's the one with any actual specifics?

By @kredd - 6 months
Assuming due to Intel's stock debacle, there will be a significant spotlight on CHIPS subsidy receivers. I understand it takes a very long time to get things going for large manufacturing changes, but I'm curious how things are going timeline wise.

It would be cool to have large high-tech manufacturing industry back in NA, but on the other hand, it's hard for me to grasp the economics behind it. My understanding was due to minimum wage laws, high prices, non-existent infrastructure and etc., it wouldn't be profitable to sell them outside of US (and that's why it was offshored, along with the Japanese/Taiwanese companies just being better quality wise). Why would a North American, European or Asian company that design hardware buy these chips when they'll always be more expensive than anything that's built overseas?

Also the jobs are fairly specialized, unlike Amazon warehouse jobs, where you can make $20/hr. So not sure how attractive the positions are for the local talent. I guess, if the governments continuously subsidized it, it would make sense. But it's not like agriculture industry, where one could make the "food security" argument.

By @talldayo - 6 months
This is what happens when you try to on-shore a business that's been optimized for low standards of living. Everyone begs for these jobs to come back to America, until some bean counter with a calculator reminds them that domestic microcontrollers will cost 15,000% more than their Chinese counterparts.