In an attempt to keep valuable employees from jumping ship, Intel has set aside $2.4 billion to raise employee pay across the company
Dec. 21, 2021
The semiconductor shortage of 2021 will live long in the memory of anyone who tried to get their hands on a piece of coveted technology this year. The market is demanding more computer chips and semiconductor companies are doing their best to keep up.
But with more demand for semiconductors comes more demand for good employees, and Intel (NASDAQ: INTC) thinks it has a way to attract only the best of the best.
The battle for semiconductor supremacy
With companies like Nvidia and AMD gaining ground in the market, Intel decided it needed to do something drastic to avoid its top workers leaving for greener pastures. To combat the growing competition the chipmaker has set aside $2.4 billion in cash and stock grants to raise employee salaries.
Averaged out across its workforce of 110,000, that amounts to a raise of $21,000 per person – quite the holiday bonus. Intel has stated however that this money will be used specifically for its best-performing employees. The demand for quality employees in the semiconductor industry has never been greater and Intel wants to “win the fierce battle for talent in today’s competitive market.”
Due to the company’s ability to both design and manufacture chips, it faces competition for its workers from two industry sectors. Even tech giants like Apple, which normally relied on companies like Intel for hardware, are now in the midst of a hiring spree as it looks to design its chips in-house.
The semiconductor space has never been more competitive, and this move from Intel marks the first in what’s sure to be a long battle for the most valuable workers in the industry. Investors will be keen to see who comes out on top, as they could become the leader in one of the world’s most lucrative industries.