Japan Material tackles chip crunch by starting its own staffing agency

NAGOYA -- As chipmakers struggle to secure staffers to keep pace with soaring demand, maintenance service provider Japan Material has launched its own staffing agency so that clients can tap experts trained in the gamut of support operations.

Based in Japan's Mie Prefecture, Japan Material provides chipmakers a wide range of services, from managing gas supply equipment and air conditioning to supplying chemicals and water. It stations hundreds of support staffers full-time at Kioxia and other companies' factories.

Enlisting social media and other channels, the company this month began recruiting semiconductor technicians through a new temporary staffing unit. Those who sign up will receive two to three months of hands-on training at Japan Material headquarters before kicking off their assignment at a client company. Most of the technicians will focus on maintenance and other tasks now handled by Japan Material employees.

Demand for chips, which are used in everything from smartphones to data centers, is surging amid rising reliance on connected devices and 5G technology. But chipmakers are struggling to find technicians to work their production lines. To lure highly skilled workers, Japan Material will offer perks like bonuses, a housing stipend and monthly pay that is about 10% higher than that of other staffing agencies.

Japan Material expects to place about 60 technicians with clients in the first year. It hopes the staffing service will help bolster its ties with clients as well as open up new business opportunities.