WCA July 2019

Telecom news

In the face of mixed fortunes, Samsung has Intel in sight Over the next ten years or so, Samsung Electronics Co will invest $116 billion to compete with Intel Corp and Qualcomm Inc in the manufacture of advanced chip processors [“Samsung Plans $116 Billion Splurge on Chips to Take On Intel”, Sam Kim, Bloomberg 24 th April]. Samsung, which now leads the market for the memory chips for devices from servers to smartphones, said it plans to increase investment in semiconductors leading up to 2030 to take the lead in so-called logic chips. It aims to create 15,000 production and research jobs over that period to become the world leader in a field dominated by its US rivals. Samsung, which is also looking to challenge Taiwan Semiconductor Manufacturing Co, joins companies from Huawei Technologies Co to Apple Inc to develop the brains that power computing devices. The Korean company has profited by designing its own microprocessors for devices such as Galaxy phones, but Intel has a commanding lead in the market for central processing units used in PCs and servers. “It’s rare for Samsung to detail such a long-term plan,” said Yoo Jong-woo, an analyst at Korea Investment and Securities. “It’s an expression of Samsung’s commitment in a chip business that includes not only Intel, but also a variety of chipmakers such as in mobile processors.” Samsung unveiled the investment plans in the same week it suffered a setback in its mobile phone business, postponing the planned April launch of the Galaxy Fold after problems emerged with early test versions. Samsung’s first foldable smartphone was hoped to usher in a new era for mobile and revitalise growth in the sector. Samsung’s semiconductor division has become the main driver of the overall business, yielding three quarters of its 2018 operating income. It spent 23.7 trillion won on semiconductor equipment last year, expanding capacity to cater to a surge in demand from makers of Internet of Things, AI and automotive technologies. Slower orders from data centre owners, such as Amazon.com Inc, and handset makers including

The advent of digital technologies will have an impact on jobs, and up to 45 million jobs could be displaced or transformed by 2025, a new McKinsey Global Institute report has warned. In “Digital India: technology to transform a connected nation” the institute highlights the rapid spread of digital technologies and their potential value to the Indian economy if government and the private sector work together to create new digital ecosystems. But, as India’s Economic Times reported, productivity gains through digital technologies may help create up to 65 million new jobs during the same timeframe. “Retraining and redeployment will be essential to help some 10-45 million workers whose jobs could be displaced or transformed,” the McKinsey Global report said. The report comes amid questions from technology industry leaders over whether the skill sets of Indian technology workers will be helpful in the future. According to the report, core digital sectors such as IT, software and business process management, digital communication and electronics manufacturing could double their GDP contributions to up to $435 billion by 2025. “All stakeholders will need to respond effectively if India is to achieve its digital potential,” it said, adding that companies will need to invest in developing skills and capabilities, possibly through partnering with universities, and governments will need to invest in digital infrastructure and public data that can be used by organisations. Observations from the McKinsey Global Institute report include: By many measures, India is well on its way to becoming a digitally advanced country. Propelled by the falling cost and rising availability of smartphones and high-speed connectivity, India is home to one of the world’s largest and fastest-growing bases of digital consumers and is digitising faster than many mature and emerging economies. To capture the potential gains, easier means to creating, scaling and exiting start-ups are necessary, as well as policies to facilitate retraining. Individuals will need to keep abreast of the changes and keep themselves informed on how the digital economy can impact their work. India’s newly digitising sectors have the potential to create sizeable economic value by 2025: from $130 billion to $170 billion in financial services, including digital payments; $50 billion to $65 billion in agriculture; $25 billion to $35 billion each in retail and e-commerce, logistics and transportation; and $10 billion in energy and healthcare. Digitising more government services and benefit transfers could yield a value of $20 billion to $40 billion, while digital skill-training and job-market platforms could yield up to $70 billion. But the report warns that, while these ranges underscore large potential value, realisation of this value is not guaranteed: losing momentum on government policies that enable the digital economy would mean India could realise less than half of the potential value by 2025. Technology can kill 45 million jobs - but help to create up to 65 million new ones

Illustrations: BigStockPhoto.com • Artist: Asmati

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Wire & Cable ASIA – July/August 2019

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