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How the STEM Crisis is Threatening the Future of Work

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<img src="https://www.visualcapitalist.com/wp-content/uploads/2020/01/STEM-1200.jpg" alt="STEM education infographic"

How the STEM Crisis Threatens the Future of Work

As the world’s leading economy, the U.S. is under pressure to produce the best minds to solve the greatest challenges facing mankind.

The problem is, the United States is falling behind in some of the most important areas of education to help solve the problems of today and tomorrow. The crisis in STEM fields—which cover science, technology, engineering and mathematics—is threatening the growing workforce and in turn, the country’s position in the global economy.

Today’s infographic from Early Childhood Education Degrees explores the importance of STEM education and how an emphasis on these four areas could successfully lead the world into an uncertain future.

The Rise of STEM

STEM is a relatively new term, coined less than two decades ago—although the grouping of subjects was sometimes referred to as SMET in previous years.

While 86% of Americans believe that increasing the number of workers in STEM areas is vital for maintaining their position in the global economy, a 2005 report sounded the alarm that U.S. students were lagging behind academically.

To combat this issue, STEM education and subsequent research programs were injected with more funding. New legislation also helped prioritize these subjects in the curriculum for kindergarten through high school.

The Skills Shift

According to Emsi, a modeler of economic data, undergraduates in STEM education increased by 43% between 2010 and 2016. However, despite the promising growth, 2.4 million STEM jobs went unfilled in 2018.

One possible reason for this? Advancing technologies such as artificial intelligence, quantum computing, and robotics require entirely new skill sets. Success in STEM jobs also relies on adapting to new situations and developing soft skills such as:

  • Creativity and innovation
  • Problem-solving and critical thinking
  • Collaboration and leadership

As these technologies continue to evolve, having skills in STEM will be non-negotiable for employees and leaders the world over.

Threatening U.S. Economic Leadership

Statistics show that the U.S. is providing more opportunities for other countries to take the lead in STEM fields. For example, 62% of all international students in tertiary education in the U.S. are in science and engineering fields, with almost 70% of those students coming from India and China.

What’s more, over half of all U.S. patents go to foreign nationals and companies instead of Americans at home.

If America’s STEM proficiency continues to decline, not only will the skills gap be detrimental to the workforce, but it will also erode its potential future for economic and scientific leadership.

The Global STEM Leaders

According to the World Economic Forum, China is a major player in STEM education, boasting 4.7 million graduates as of 2016.

The country’s swift uptake of STEM initiatives is driven by new government policy, school participation, and parents’ increasing awareness of the benefits that will future proof the careers of their children.

STEM education global

The U.S. sits in third place with 568,000 STEM graduates, but compares closely with India on STEM graduates per population—1 to 52 in India and 1 to 57 in the United States. However, they’re still no match for China’s 1 to 29 ratio.

Narrowing the Skills Gap

If the U.S. is to become a global leader in STEM literacy, innovation, and employment, the Department of Education suggests that a STEM reform is needed, with the increase of diversity and inclusion being a top priority.

A significant opportunity for growth lies in making STEM more accessible for women—but while there has been a steady rise in women pursuing STEM careers, there are still systemic barriers in place that prohibit women from entering.

Experts also suggest that the introduction of STEM at an earlier age and educating students on the diversity of STEM careers are crucial elements in preparing a more capable workforce.

Given the recent demand for reform, it is clear that STEM education is key to thriving in the new technology-based economy and cultivating solutions to real world problems.

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Ranked: Semiconductor Companies by Industry Revenue Share

Nvidia is coming for Intel’s crown. Samsung is losing ground. AI is transforming the space. We break down revenue for semiconductor companies.

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A cropped pie chart showing the biggest semiconductor companies by the percentage share of the industry’s revenues in 2023.

Semiconductor Companies by Industry Revenue Share

This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.

Did you know that some computer chips are now retailing for the price of a new BMW?

As computers invade nearly every sphere of life, so too have the chips that power them, raising the revenues of the businesses dedicated to designing them.

But how did various chipmakers measure against each other last year?

We rank the biggest semiconductor companies by their percentage share of the industry’s revenues in 2023, using data from Omdia research.

Which Chip Company Made the Most Money in 2023?

Market leader and industry-defining veteran Intel still holds the crown for the most revenue in the sector, crossing $50 billion in 2023, or 10% of the broader industry’s topline.

All is not well at Intel, however, with the company’s stock price down over 20% year-to-date after it revealed billion-dollar losses in its foundry business.

RankCompany2023 Revenue% of Industry Revenue
1Intel$51B9.4%
2NVIDIA$49B9.0%
3Samsung
Electronics
$44B8.1%
4Qualcomm$31B5.7%
5Broadcom$28B5.2%
6SK Hynix$24B4.4%
7AMD$22B4.1%
8Apple$19B3.4%
9Infineon Tech$17B3.2%
10STMicroelectronics$17B3.2%
11Texas Instruments$17B3.1%
12Micron Technology$16B2.9%
13MediaTek$14B2.6%
14NXP$13B2.4%
15Analog Devices$12B2.2%
16Renesas Electronics
Corporation
$11B1.9%
17Sony Semiconductor
Solutions Corporation
$10B1.9%
18Microchip Technology$8B1.5%
19Onsemi$8B1.4%
20KIOXIA Corporation$7B1.3%
N/AOthers$126B23.2%
N/ATotal $545B100%

Note: Figures are rounded. Totals and percentages may not sum to 100.


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Meanwhile, Nvidia is very close to overtaking Intel, after declaring $49 billion of topline revenue for 2023. This is more than double its 2022 revenue ($21 billion), increasing its share of industry revenues to 9%.

Nvidia’s meteoric rise has gotten a huge thumbs-up from investors. It became a trillion dollar stock last year, and broke the single-day gain record for market capitalization this year.

Other chipmakers haven’t been as successful. Out of the top 20 semiconductor companies by revenue, 12 did not match their 2022 revenues, including big names like Intel, Samsung, and AMD.

The Many Different Types of Chipmakers

All of these companies may belong to the same industry, but they don’t focus on the same niche.

According to Investopedia, there are four major types of chips, depending on their functionality: microprocessors, memory chips, standard chips, and complex systems on a chip.

Nvidia’s core business was once GPUs for computers (graphics processing units), but in recent years this has drastically shifted towards microprocessors for analytics and AI.

These specialized chips seem to be where the majority of growth is occurring within the sector. For example, companies that are largely in the memory segment—Samsung, SK Hynix, and Micron Technology—saw peak revenues in the mid-2010s.


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