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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (17738)	1/5/2024 12:40:51 PM
From: Kirk ©	Respond to of 27127

I remember it was the mid 1990s when we started moving easier R&D jobs to Singapore as we moved low skill assembly jobs from Singapore to Malaysia. The biggest problem I remember was we'd lose well trained engineers to competition that paid more or they'd start their own companies. The new minimum wage at McDonalds in here in CA now is $20 per hour. That should be good for automation companies and increase the Social Security trust fund holdings. Malaysian official: semiconductor talent shortage stems from low salary, not lack of talent Ollie Chang, Taipei; Jack Wu, DIGITIMES Asia Thursday 4 January 2024 Malaysia is the sixth-largest exporter of semiconductors worldwide and is starting to emerge in the global semiconductor manufacturing supply chain. Despite that, there are often negative comments locally about the shortage of technical talents. Regarding this issue, Liew Chin Tong, deputy head of the Ministry of Investment, Trade and Industry (MITI), recently stated that the issue lies in wages rather than talent. According to a report from the East Asia Forum, Liew stated that these comments stemmed from the fact that many Malaysian companies, especially small-and-medium-sized enterprises, still rely on low-skilled foreign labor and resist the trend of automation. External critics have questioned Malaysia's ability to manufacture advanced automation machinery or precision tools like Japan or Germany. Liew countered these arguments by stating that Malaysia's semiconductor industry has created successful local companies like Greatech, Pentamaster, and Walta, specializing in automation solutions. For example, ViTrox makes customized automated optical inspection systems for semiconductor processes, enhancing Malaysia's capabilities in the semiconductor industry. Liew believes that Malaysia does not lack technical talent but suffers from low wages, which resulted in its technical workers seeking employment in Singapore instead. The chicken or the egg, which came first? It's reported that the median monthly salary of an employee in Malaysia's manufacturing sector is MYR2,205 (approx. US$479), much lower than the country's overall median monthly salary of MYR2,424 (approx. US$526), which is unusual. Low salaries are something even engineers have to deal with in Malaysia. Citing data from the 2022 report by the Board of Engineers Malaysia (BEM), Liew pointed out that in 2021, over one-third of engineering graduates had a starting monthly salary of less than MYR2000, with 90% earning less than MYR3000. It's very challenging to survive with this salary level in the capital of Kuala Lumpur. The low salaries further lead to a shortage of talent. As of the end of 2022, the engineer-to-population ratio in Malaysia is 1:170, lower than the target of 1:100. Those who initially worked in STEM (Science, Technology, Engineering, Mathematics) fields eventually switched careers due to the low salaries. Neighboring countries are a common choice for most Malaysian STEM graduates seeking opportunities. In Singapore, entry-level engineers earn a starting monthly salary of approximately SGD2,800 to 3,400 (approx. US$2,126 - 2,582). Therefore, Liew suggested that Malaysia should prioritize increasing investment in STEM education, strengthening technical and vocational training, and building a robust talent pool. Simultaneously, there is a need to raise the salary levels in the semiconductor industry, providing incentives to address the issues of talent loss and shortages. In September 2023, Malaysian Prime Minister Anwar Ibrahim introduced the "New Industrial Master Plan 2030" (NIMP 2030). One of the plan's objectives is to double the median monthly salary in the manufacturing industry from MYR2,205 in 2022 to MYR4,510 by 2030. digitimes.com

To: Elroy who wrote (17738)

1/18/2024 4:25:10 PM

From: Kirk ©

1 Recommendation

Recommended By
Sr K

Respond to of 27127

STAMFORD, Conn., January 17, 2024

Gartner Forecasts Worldwide IT Spending to Grow 6.8% in 2024
Spending on IT Services to Surpass Communications Services Spending for the First Time in 2024

Worldwide IT spending is expected to total $5 trillion in 2024, an increase of 6.8% from 2023, according to the latest forecast by Gartner, Inc. This is down from the previous quarter’s forecast of 8% growth. While generative AI (GenAI) had significant hype in 2023, it will not significantly change the growth of IT spending in the near-term.

“While GenAI will change everything, it won’t impact IT spending significantly, similar to IoT, blockchain and other big trends we have experienced,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “2024 will be the year when organizations actually invest in planning for how to use GenAI, however IT spending will be driven by more traditional forces, such as profitability, labor, and dragged down by a continued wave of change fatigue.”

IT Services Becomes Largest Segment of IT Spending in 2024

IT services will continue to see an increase in growth in 2024, becoming the largest segment of IT spending for the first time. Spending on IT services is expected to grow 8.7% in 2024, reaching $1.5 trillion (see Table 1). This is largely due to enterprises investing in organizational efficiency and optimization projects. These investments will be crucial during this period of economic uncertainty.

“Adoption rates among consumers for devices and communications services plateaued over a decade ago. Consumer spending levels are primarily driven by price changes and replacement cycles, leaving room for only incremental growths, so being surpassed by software and services was inevitable,” said Lovelock. “Enterprises continue to find more uses for technology – IT has moved out of the back office, through the front office and is now revenue producing, until there is a plateau for how and where technology can be used in an enterprise, there cannot be a plateau in enterprise IT spending.”

Table 1. Worldwide IT Spending Forecast (Millions of U.S. Dollars)

	2023 Spending	2023 Growth (%)	2024 Spending	2024 Growth (%)
Data Center Systems	243,063	7.1	261,332	7.5
Devices	699,791	-8.7	732,287	4.6
Software	913,334	12.4	1,029,421	12.7
IT Services	1,381,832	5.8	1,501,365	8.7
Communications Services	1,440,827	1.5	1,473,314	2.3
Overall IT	4,678,847	3.3	4,997,718	6.8

Source: Gartner (January 2024)

CIOs’ Change Fatigue Continues to Impact IT Spending
The overall IT spending growth rate for 2023 was 3.3%, only a 0.3% increase from 2022. This was largely due to change fatigue among CIOs. Momentum will regain in 2024, with overall IT spending increasing 6.8%.

Even with the expected regained momentum in 2024, the broader IT spending environment remains slightly constrained by change fatigue. Change fatigue could manifest as change resistance — with CIOs hesitating to sign new contracts, commit to long-term initiatives or take on new technology partners. For the new initiatives that do get launched, CIOs require higher levels of risk mitigation and greater certainty of outcomes.

Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 4Q23 Update.”

Learn more in the complimentary Gartner webinar IT Spend Forecast 4Q23: What to Expect in 2024 and Beyond.

About Gartner for High Tech
Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at www.gartner.com/en/industries/high-tech.

Follow news and updates from Gartner for High Tech on X and LinkedIn using #GartnerHT.

gartner.com

To: Elroy who wrote (17738)	1/22/2024 3:53:40 PM
From: Kirk ©	3 Recommendations Recommended By sixty2nds Sr K toccodolce Read Replies (1) \| Respond to of 27127

In-and-Out following you out of Oakland despite its store being profitable. Oakland's only In-N-Out to permanently close (sfgate.com) Oakland's only In-N-Out to permanently close By Amanda Bartlett Jan 21, 2024 Oakland’s only In-N-Out will serve its last double-double on March 24 after more than 18 years in operation at 8300 Oakport Street, the burger restaurant’s chief operating officer Denny Warnick confirmed with SFGATE in an emailed statement Sunday. Warnick described the store as “busy and profitable” for the company, and drive-thru lines during the dinner rush often stretched all the way out into neighboring parking lots. However, he cited “ongoing issues with crime” as the reason for the closure. “Despite taking repeated steps to create safer conditions, our Customers and Associates are regularly victimized by car break-ins, property damage, theft, and armed robberies,” Warnick wrote in the statement, which was first reported by KGO. “...Our top priority must be the safety and well-being of our Customers and Associates – we cannot ask them to visit or work in an unsafe environment.”

To: Elroy who wrote (17738)	2/25/2025 10:08:54 AM
From: Kirk ©	3 Recommendations Recommended By Elroy oldbeachlvr Return to Sender Read Replies (1) \| Respond to of 27127

I voted to have a full Digitimes article for this SIMO headline. Silicon Motion anticipates rising memory demand thanks to DeepSeek Taiwan-based NAND flash controller chip developer Silicon Motion president, Wallace Kou, expects DeepSeek's emergence to lower costs for edge computing applications and boost demand for DRAM and NAND flash. Remind me tomorrow to check to see if they do a full article.