Can the US create high-tech manufacturing jobs?
Whatever the case, industry and government officials at the SelectUSA Investment Summit agreed: the US wants, needs, to be first.
A crucial part of winning the AI race in the US involves creating a high-tech manufacturing industry that will build the thousands of chips and data centres needed to power this technology. The creation of such an industry is aligned with one of the Trump administration's main goals: bringing manufacturing jobs back to the US. However, delegates at the SelectUSA Investment Summit made it clear that this was not an easy task and that the lack of a trained labour force is one of the main obstacles they face. How will the US address its skilled labour shortfall in order to power its AI ambitions?
Since 1997, 'the US lost around five million manufacturing jobs', US Labor Secretary Lori Chavez-DeRemer told an audience at the summit. 'Nearly 100,000 factories closed, and we experienced one of the largest drops in manufacturing employment in history.'
However, that was all about to change, Chavez said.
'From manufacturing to mining and technology to transportation, our industries are coming back to life because President Trump has sent a clear message: America is open for business.'
Much of President Trump's tariff regime, despite the actual consequences it has had so far, has been justified through this goal. Manufacturing jobs left the US when the world embraced globalisation, and the president argues that high tariffs will force companies to build locally, and therefore bring those jobs back to the US. For this, he has received support from unlikely allies such as United Auto Workers President Shawn Fain and the Brotherhood of Teamsters (one of the US' biggest unions).
At SelectUSA, state governors from both parties and industry leaders also made it clear that they supported increasing manufacturing with AI integration at its core. Siemens CEO Barbara Humpton said the technological advances in manufacturing reflected an "AI industrial revolution".
"There are still old notions of what manufacturing looks like. That it is hot and hard and dirty work, but it is cutting-edge technology," Michigan Governor Gretchen Whitmer said about her state, traditionally the home of US auto manufacturing.
There are various objectives at play. There is the political goal of bringing back manufacturing and the industry goal of making these processes more efficient through AI integration. Underpinning both of these is the need to develop a high-tech manufacturing sector that can sustain it all. Developing sensitive technology independently from China seems to be a national security issue everyone can get behind.
Since 2020, the US has attracted more than $540bn in semiconductor supply chain investments. The CHIPS and Science Act, passed in 2022, has been a major factor for domestic and foreign companies giving grants, subsidies and other incentives to develop the sector. The CHIPS Act is the first major piece of industrial policy the US has passed since the 1950s. It is a notable effort in a country that is not accustomed to long-term planning. However, it means that the US is catching up with other countries that have spent decades developing a workforce with the necessary skills.
Taiwanese companies such as TSMC have been a major source of investment since the passing of the CHIPS Act; the company says its total investment in the US will reach $165bn (T$4.93trn). Even with this policy, however, the US may not necessarily have been an economically logical place for it to build semiconductors. The security guarantee that the US provides for Taiwan also played a role in attracting companies that might have otherwise produced more locally.
'I am not sure that purely on the economics, the US would be a very good bet, even with incentives for building leading-edge fab custody, mostly because of the workforce. We just don't have a tradition of this highly consequential workforce that you really need for the most advanced chip manufacturing,' W. Patrick Wilson, vice-president of government relations at Taiwanese chip company MediaTek, told Investment Monitor. 'We always understood that another component of it was deepening the US-Taiwan partnership.'
Whatever the confluence of factors that has led to vast investment in the semiconductor industry, it has meant that foreign companies are now taking on the challenge of building the necessary workforce.
The Semiconductor Industry Association predicts a deficit of 67,000 workers within the country's semiconductor industry by 2030. According to GlobalData Strategic Intelligence principal analyst Isabel Al-Dhahir, this gap "is likely to affect not just domestic chip production but also adjacent industries such as data centre construction, potentially resulting in delays and escalating costs'.
At the SelectUSA summit, the need for the US to upskill workers was widely acknowledged by both economic development organisations and businesses with major investments in the US.
One official who is part of the Tech Hubs Programme, highlighted that in her city, they "put industry in the room first" and asked them "what are your needs for your workforce today? What are they tomorrow?" These conversations happen before they contact technical colleges to work together to develop curricula.
Representatives from US and Taiwanese semiconductor companies also expressed frustrations about the skilled labour shortage, particularly as the rise of automation changes the qualifications workers need.
'The area that we really focus on for workforce development is that mid tier. Ours will be the most advanced silicon wafer facility in the world, which means that we are implementing a lot of automation. So, we will have fewer operators. Operators typically have a high school-dependent education, but we will need more technicians with that community college, two-year degree,' said Brent Omhdal, executive vice-president for government affairs at Taiwanese chip company GlobalWafers.
While companies are betting that educational initiatives led by private-public partnerships will create this workforce in the long run, their time horizons do not always conform to the speed the industry wants to move at. TSMC, which announced in March that it would invest an extra $100bn to build five more fabs in the US, has already dealt with the consequences of this asymmetry.
As of January 2025, half of the 2,200 workers at TSMC's Arizona plant had been brought in from Taiwan. The company realised they could not stay within budget and train a local workforce with the necessary skills on time. This caused pushback from unions, who were promised the plant would create jobs for local workers. The example underscores the difficulties of supercharging the development of an industry without a readily available workforce to match it.
Barry Broome, Greater Sacramento Economic Council CEO, says he witnessed 'the destruction of the economic base of the Midwest', while working in Ohio and Michigan earlier in his career. The problem was not free trade agreements like NAFTA, he argues, it was that 'there wasn't an effort to increase US competitiveness'. When Investment Monitor asked whether the simultaneous push to reshore jobs while integrating AI and automation will bring back as many jobs as some people expect, Broome said: 'It won't.'
'I think it will bring back a lot of jobs. I mean, the fact of the matter is, we need a nationwide movement to upskill people, because you are not going to make a living wage unless you are technically skilled,' Broome noted.
Increased automation, while it might contribute to the growth of the industry and lower costs, would also undermine the goal of job creation.
'Trump's goals are reshoring and increasing employment in the manufacturing industry," Beatriz Valle, senior technology analyst at GlobalData, tells Investment Monitor. "Trump is cultivating ties with many Big Tech CEOs whose main goal is to grow automation and robotics, which, in some cases, may replace types of manual work, and there is a clear contradiction between these two goals."
Wider economic questions also underpin the development of this workforce. Will companies invest more in automation to counteract higher operating costs in the US? What does that mean, in the long term, for the number of jobs that will be created? And, more importantly, will the US be able to pursue all these goals with enough speed to win the global AI race?
"Can the US create high-tech manufacturing jobs?" was originally created and published by Investment Monitor, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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"Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Goldman's Kostin says S&P 500 earnings surge past expectations Bloomberg reports: Read more here. Bloomberg reports: Read more here. Walmart, Target quarterly results on deck next week The focus turns to retailers next week as heavyweights Walmart (WMT), Target (TGT), Lowe's (LOW), and Home Depot (HD) report results. Investors will be listening for changes in consumer behavior as tariffs and inflation remain top concerns for households. Earlier this earnings season, Amazon CEO Andy Jassy noted that the company wasn't seeing diminishing demand or meaningful price increases. Similarly, Mastercard CEO Michael Miebach said consumer spending remains healthy. However, recent data showed retail sales rose by less than expected in July. And some companies, particularly fast-casual restaurants, noted their customers were pulling back. With that mixed picture in the backdrop, the earnings calendar next week should provide additional insights from some of the big brands Americans shop. Here's what's on deck: Monday Palo Alto Networks (PANW), Blink Charging (BLNK) Tuesday Home Depot, Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL) Wednesday Target, Lowe's, Baidu (BIDU), TJX Companies (TJX), Estée Lauder (EL) Thursday Walmart, Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Ross Stores (ROST) Friday BJ's Wholesale (BJ) The focus turns to retailers next week as heavyweights Walmart (WMT), Target (TGT), Lowe's (LOW), and Home Depot (HD) report results. Investors will be listening for changes in consumer behavior as tariffs and inflation remain top concerns for households. Earlier this earnings season, Amazon CEO Andy Jassy noted that the company wasn't seeing diminishing demand or meaningful price increases. Similarly, Mastercard CEO Michael Miebach said consumer spending remains healthy. However, recent data showed retail sales rose by less than expected in July. And some companies, particularly fast-casual restaurants, noted their customers were pulling back. With that mixed picture in the backdrop, the earnings calendar next week should provide additional insights from some of the big brands Americans shop. Here's what's on deck: Monday Palo Alto Networks (PANW), Blink Charging (BLNK) Tuesday Home Depot, Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL) Wednesday Target, Lowe's, Baidu (BIDU), TJX Companies (TJX), Estée Lauder (EL) Thursday Walmart, Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Ross Stores (ROST) Friday BJ's Wholesale (BJ) With Nvidia's Q2 earnings in sight, Trump deal could boost outlook Nvidia's (NVDA) deal with President Trump to give the US government a 15% cut of H20 chip revenue in China adds an interesting wrinkle to the company's earnings. China has responded by urging companies not to use the chips. Yahoo Finance's Daniel Howley writes that the payment, which could face legal challenges, won't show up in Nvidia's Q2 report but could boost its Q3 outlook if the administration moves quickly. Howley notes: Read more here. Nvidia's (NVDA) deal with President Trump to give the US government a 15% cut of H20 chip revenue in China adds an interesting wrinkle to the company's earnings. China has responded by urging companies not to use the chips. Yahoo Finance's Daniel Howley writes that the payment, which could face legal challenges, won't show up in Nvidia's Q2 report but could boost its Q3 outlook if the administration moves quickly. Howley notes: Read more here. McGraw Hill posts profitable quarter in first post-IPO earnings report McGraw Hill (MH) stock gained 2% after reporting its first quarterly results since going public. It traded around $13.61 on Thursday afternoon. In July, shares opened at $17 apiece in the company's IPO. Total revenue increased 2.4% year over year to $535.7 million. The education solutions company also swung to a $0.5 million profit, compared to its $9.4 million loss a year ago. Market share gains, enrollment, and continued demand for digital learning solutions fueled the higher education business, which saw revenue jump 14.1% year over year. Revenue for the K-12 segment, however, declined 1.4%. These two business units make up the bulk of McGraw Hill's business. The smaller international business noted weakness, with an 11.7% decrease in revenue, while sales in the global professional business held steady. For 2026, McGraw Hill sees revenue in a range of $1.98 billion to $2.04 billion. Listen to the earnings call here. McGraw Hill (MH) stock gained 2% after reporting its first quarterly results since going public. It traded around $13.61 on Thursday afternoon. In July, shares opened at $17 apiece in the company's IPO. Total revenue increased 2.4% year over year to $535.7 million. The education solutions company also swung to a $0.5 million profit, compared to its $9.4 million loss a year ago. Market share gains, enrollment, and continued demand for digital learning solutions fueled the higher education business, which saw revenue jump 14.1% year over year. Revenue for the K-12 segment, however, declined 1.4%. These two business units make up the bulk of McGraw Hill's business. The smaller international business noted weakness, with an 11.7% decrease in revenue, while sales in the global professional business held steady. For 2026, McGraw Hill sees revenue in a range of $1.98 billion to $2.04 billion. Listen to the earnings call here. Quantum Computing stock slips as losses accelerate Quantum Computing (QUBT) CEO Yuping Huang said that the company continued to make progress in growing commercial traction in the second quarter, but the industry is still focused on reaching technology milestones. Second quarter revenue totaled approximately $61,000, compared to $183,000 in the same period a year ago. The company reported a net loss of $36.5 million, or $0.26 per share. In Q2 2024, Quantum Computing posted a net loss of $5.2 million, or $0.06 per share. Quantum Computing stock fell 2.3% after hours in what's been a whipsaw year for quantum stocks. In June, the stock spiked 25% in one day after Nvidia CEO Jensen Huang said quantum computing "is reaching an inflection point." But the industry is still in its infancy. The other big quantum player, Rigetti Computing (RGTI), reported a technology breakthrough in its recent results but also big losses. "We are talking of a market that's hundreds of billions of dollars a decade or two from now," Rigetti CEO Subodh Kulkarni told Market Domination Overtime. "But right now, we are clearly in the R&D stage. We clearly need to perfect the technology to get to that big milestone in about four years, which we call quantum advantage." Read more about quantum computing here. Quantum Computing (QUBT) CEO Yuping Huang said that the company continued to make progress in growing commercial traction in the second quarter, but the industry is still focused on reaching technology milestones. Second quarter revenue totaled approximately $61,000, compared to $183,000 in the same period a year ago. The company reported a net loss of $36.5 million, or $0.26 per share. In Q2 2024, Quantum Computing posted a net loss of $5.2 million, or $0.06 per share. Quantum Computing stock fell 2.3% after hours in what's been a whipsaw year for quantum stocks. In June, the stock spiked 25% in one day after Nvidia CEO Jensen Huang said quantum computing "is reaching an inflection point." But the industry is still in its infancy. The other big quantum player, Rigetti Computing (RGTI), reported a technology breakthrough in its recent results but also big losses. "We are talking of a market that's hundreds of billions of dollars a decade or two from now," Rigetti CEO Subodh Kulkarni told Market Domination Overtime. "But right now, we are clearly in the R&D stage. We clearly need to perfect the technology to get to that big milestone in about four years, which we call quantum advantage." Read more about quantum computing here. Applied Materials stock sinks as policy uncertainty weighs on Q4 guidance Applied Materials (AMAT) recorded an earnings beat for the July quarter but said that the "dynamic" policy environment is creating uncertainty for the business. That led the chip equipment maker to issue a revenue forecast of $6.7 billion for the fourth quarter, below what the Street was expecting. 'We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,' CFO Brice Hill said. 'We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.' The company, whose clients include Taiwan Semiconductor and Intel, posted record revenue of $7.30 billion in Q3, up 8% year over year, surpassing estimates for $7.2 billion. Earnings per share of $2.48 also beat estimates by $0.12. Applied Materials stock fell 11% in after-hours trading. Read more here. Applied Materials (AMAT) recorded an earnings beat for the July quarter but said that the "dynamic" policy environment is creating uncertainty for the business. That led the chip equipment maker to issue a revenue forecast of $6.7 billion for the fourth quarter, below what the Street was expecting. 'We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,' CFO Brice Hill said. 'We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.' The company, whose clients include Taiwan Semiconductor and Intel, posted record revenue of $7.30 billion in Q3, up 8% year over year, surpassing estimates for $7.2 billion. Earnings per share of $2.48 also beat estimates by $0.12. Applied Materials stock fell 11% in after-hours trading. Read more here. Earnings and revenue beats lift Dillard's stock Dillard's (DDS) stock rose 7% on Thursday after the department store chain reported revenue and profit beats for the quarter. Net income fell to $72.8 million compared to $74.5 million a year ago, but earnings per share rose $0.07 year over year after the Arkansas-based company bought back stock. Revenue of $1.53 billion beat Wall Street estimates of $1.52 billion, according to S&P Global Market Intelligence. Earnings per share of $4.66 also topped estimates of $4.00 per share. Total retail sales were flat, with strength in juniors' and children's apparel as well as ladies' accessories and lingerie. The weakest performing category was home and furniture. Other major retailers, including Walmart (WMT), Target (TGT), and Macy's (M), will report second quarter results in the coming weeks, providing a more in-depth look into consumer spending habits. Dillard's stock is up 23% year to date. It has climbed 78% since its April 8 low. Dillard's (DDS) stock rose 7% on Thursday after the department store chain reported revenue and profit beats for the quarter. Net income fell to $72.8 million compared to $74.5 million a year ago, but earnings per share rose $0.07 year over year after the Arkansas-based company bought back stock. Revenue of $1.53 billion beat Wall Street estimates of $1.52 billion, according to S&P Global Market Intelligence. Earnings per share of $4.66 also topped estimates of $4.00 per share. Total retail sales were flat, with strength in juniors' and children's apparel as well as ladies' accessories and lingerie. The weakest performing category was home and furniture. Other major retailers, including Walmart (WMT), Target (TGT), and Macy's (M), will report second quarter results in the coming weeks, providing a more in-depth look into consumer spending habits. Dillard's stock is up 23% year to date. It has climbed 78% since its April 8 low.
The Hill
14 minutes ago
- The Hill
Trump purchased $100M+ in bonds since January, filings show
President Trump purchased over $100 million worth of bonds since he took office for his second term in January, according to Office of Government Ethics filings. The filings, released on Tuesday night, showed that the president began purchasing on Jan. 21, the day after the inauguration, and purchased over 30 more corporate and municipal bonds in that month. Through Aug. 1, he made nearly 700 bond purchases. The filing is a periodic report released after the Office of Government Ethics reviewed the transactions and certified them as in compliance, including getting Trump's signature, according to a senior White House official. The official said that the president has no role in managing his investments, and they are managed by a third-party financial institution. The official added that neither Trump nor any member of family had direct input into the investments and all decisions are made by independent management. The bonds Trump purchased, according to the filings, was sold by entities like Triborough Bridge and Tunnel Authority, a health facility in Alachua County, Fla., a Michigan public power agency and a Johnson County, Kan., park and recreation office. Bonds were also purchased from some major companies, including Home Depot, T-Mobile USA, UnitedHealth Group, Wells Fargo, Morgan Stanley and Qualcomm. The filing does not give a specific amount of each purchase, but the lowest range from $50,001 to $100,000 and the largest range from $500,001 to $1 million. Trump has been criticized for mingling politics with his business interests throughout his second term, with ethics watchdogs and Democrats accusing him of profiting off of the presidency through ventures like the launch of a cryptocurrency, Trump-branded sneakers and Bibles and a line of fragrances.
New York Post
14 minutes ago
- New York Post
JD Vance raises $4M for Republican National Committee during UK trip
WASHINGTON — Vice President JD Vance raked in $4 million for the Republican National Committee during his jaunt to the United Kingdom last week, adding more cash to the GOP pot ahead of next year's midterms, The Post has learned. The VP met with several RNC donors living overseas as he traveled across Britain, including stops in the Cotswolds and Scotland, according to a source familiar with the discussions. Federal rules allow Americans living or travelling abroad to contribute to political organizations and campaigns. The UK trip was the latest fundraising sojourn Vance has made since being tapped as RNC finance chair in March. Vice President JD Vance speaks during a meeting with Britain's Foreign Secretary David Lammy at Chevening House in Kent, England, Friday, Aug. 8, 2025. AP The veep previously raised money in Houston, Dallas, Manhattan, Atlanta, Nashville, San Diego, Nantucket, Jackson Hole, and Big Sky, Montana. Vance's first big donor dinner was held in New York City where tickets ran as high as $250,000 per head, The Post previously reported. He then raked in $3 million at his fundraiser in Nantucket last month. Those close to the White House believe Vance's RNC post, an unprecedented position for a vice president to hold, will boost him in his near-certain bid for the GOP presidential nomination in 2028. Trump told reporters Aug. 5 that Vance was the 'most likely' heir to the 45th and 47th president's Make America Great Again movement. U.S. Vice President JD Vance plays golf at Trump Turnberry golf course, during his holiday, in Turnberry, Scotland, Britain, August 14, 2025. REUTERS 'Last year, President Trump won an historic election victory, taking back the White House and helping Republicans regain control of the Senate and retain control of the House,' Vance said in a statement at the time of his appointment. 'But to fully enact the MAGA mandate and President Trump's vision that voters demanded, we must keep and grow our Republican majorities in 2026.' During his visit, Vance also spoke to British officials and successfully convinced the UK to drop its demand to access personal cloud data storage, which could have impacted the privacy of American citizens. On Aug. 8, the 41-year-old went trout fishing with British Foreign Secretary David Lammy in England ahead of a discussion of US-UK relations, Gaza and Ukraine.
