Chip industry criticizes Trump's plans to tighten visa rules

As Bloomberg reports, semiconductor industry leaders are warning that new restrictions on student visas and a sharp increase in the cost of applying for work visas could undermine US efforts to strengthen microchip production and deepen a labor shortage.

More than two dozen chip company executives, including two unnamed CEOs, have spoken out against the Department of Homeland Security’s plan to impose a four-year cap on F-1 student visas. They say the change would reduce access for young professionals, as graduate programs in technology often last longer. The F-1 is currently a key step toward obtaining the H-1B work visa, which allows foreigners to stay and work in the United States.

Concerns have grown since the Trump administration’s decision in August to impose a $100,000 fee on most new H-1B applications. For large manufacturers like NVIDIA, Intel, Qualcomm, and Micron, which hire hundreds of professionals each year, the additional costs could run into tens of millions of dollars.

Experts remind us that the US already has a significant talent shortage in the technology sector. The Semiconductor Industry Association predicts that by 2030, 67,000 vacancies may remain unfilled, a quarter of which will require a master's or PhD degree. At the same time, more than three-quarters of graduate students in computer science in the US are foreigners.

"Immigration is essential to the long-run success of this industry in the US," said Adam Ozimek, chief economist at the Economic Innovation Group, a think tank. He said the world is facing a talent shortage and the United States is competing with other countries for this talent.

Despite the criticism, the White House insists that the new H-1B rules "protect American workers" while creating predictability for businesses. Donald Trump has also said he supports bringing foreign companies and experts to the US, but only temporarily - with the subsequent return home after the transfer of knowledge.

As a reminder, after the announcement of new visa rules, US tech giants started talking about the process of moving jobs abroad. In addition, China launched a new visa program to attract technology specialists from around the world.