Nvidia CEO Jen-Hsun Huang has claimed that software program is consuming the world, however AI goes to eat software program. The idea of machine studying has by some means infinitely expanded folks’s creativeness about software program. The greatest distinction in comparison with {hardware} is that software program presents excessive added worth that incurs very low price in making copies of the software program. But every software program developer must develop its personal distinctive enterprise mannequin.
Hardware is a special story. The prices for copying {hardware} are very excessive, however its enterprise fashions could be simply duplicated. Products with totally different specs and costs can all discover their very own enterprise alternatives. Since {hardware} manufacturing requires a number of manpower, {hardware}’s reference to the guide labor market stays very excessive although most of the manufacturing processes have already been automated.
At the tip of 2018, Foxconn nonetheless had a complete of over a million employees worldwide. For governments worldwide, methods to create non-technical job openings for his or her residents has at all times been considered one of their main challenges and can be the explanation behind Taiwan producers’ sturdy recognition amongst governments world wide.
In addition to China, India and nations in ASEAN have additionally been eager on looking for overseas investments into their {hardware} manufacturing trade to create extra jobs. The governments of Taiwan, South Korea and Japan have additionally been eager on stopping their present manufacturing industries from transferring out and affecting employment.
On the opposite hand, with the fast development of semiconductor applied sciences, the necessity to allocate enormous sums of capex has created excessive boundaries for a lot of corporations within the semiconductor sector. This is clearly seen from Japan, Taiwan and South Korea semiconductor gamers’ heavy spending within the tools market. The semiconductor trade is capital intensive and carries very excessive technological boundaries, which makes it prohibitive for a lot of nations. We suppose arduous tech should grow to be sizzling tech sooner or later.
(Note: This is a part of a collection of articles by Digitimes president Colley Hwang on the newest developments of the IT trade within the wake of the US-China commerce conflict.)
