CONS

(mainly is abt chip crisis)

Computer chip, integrated circuit or small wafer of semiconductor material embedded with integrated
circuitry. Chips comprise the processing and memory units of the modern digital computer (see
microprocessor; RAM).

1.(lack of minerals)

A semiconductor chip, or microchip, is primarily made of silicon and undergoes a complex manufacturing
process. It involves creating patterns on a silicon wafer using techniques like doping, photolithography,
etching, and deposition. The finished chip contains layers of doped silicon, metal interconnects, and
insulating materials, enabling it to perform electronic functions in devices like computers and
smartphones.

2. chip crisis will affect automation by causing delays in projects, increasing costs, and potentially shifting
focus towards efficiency improvements and alternative technologies. Supply chain disruptions and higher
chip prices may slow down automation implementation and innovation in the short term.

Evidence

https://www.gartner.com/en/newsroom/press-releases/2023-02-02-navigating-the-dynamics-of-the-
chip-market-cyclicality-is-back

Pre-pandemic, there was a rising demand for electronic devices like smartphones, laptops, and IoT
devices.

Gartner's research indicates that global semiconductor revenue rose by 10.4% in 2020, fueled by the
demand for electronics even during the pandemic.

This increased demand for electronics contributed significantly to the strain on semiconductor supply
chains, exacerbating the chip crisis.

https://www.gartner.com/en/newsroom/press-releases/2023-02-02-navigating-the-dynamics-of-the-
chip-market-cyclicality-is-back

The automotive industry is a significant user of semiconductor chips, employing them for various
functions within vehicles.

The resurgence in automotive sales after the pandemic played a major role in exacerbating the chip
shortage.
IHS Markit's data shows a notable 10.8% increase in global automotive semiconductor revenue in 2020,
despite an initial dip in vehicle production during the early months of the pandemic.

This surge in automotive semiconductor demand added to the overall strain on chip supply chains,
contributing to the chip crisis.

PROS

1. Technology has now given us artificial general intelligence, meaning, autonomous machines can have
broad mental capacity and cognitive ability to do a wide variety of task while evolving and improving
overtime. This is just like a person who gets education, training and internship to become excellent at a
job.

2. Due to the global demographic crisis affecting mainly the developed countries, governments across
the world are investing heavily in robotics and automation to deal with the declining workforce across all
sectors including medicine and education. In fact:

- the Japanese government invested $400 million in an attempt to create the world's ultimate intelligent
machine that combined state of the art hardware with software that would support artificial intelligence
applications with "reasoning capabilities."

https://www.usnews.com/news/best-countries/articles/2019-01-23/japans-comeback-is-rooted-in-
automation

- After loosing 2.8 million people in 2022, the Chinese government announced an investment package of
$38.1 billion on Artificial Intelligence by 2027. The reasoning for this as the Chinese government has said
is that China will lose half it’s working-age population by 2050 as it’s elderly population doubles,
meaning severe and chronic labor shortages for factories, hospitals and schools.

https://www.chinadaily.com.cn/a/202308/26/WS64e98e3aa31035260b81e5e3.html

- The private sector is also highly interested in robotics and automation to reduce labor costs. In fact, the
global robotics market is already estimated to reach $248.5 billion by 2025 growing at 46% per year.
Microsoft, Samsung, Google, and Mcdonalds are all investing billions of dollars in automation.
Mcdonalds has already built a location that is completely automated without a single worker.

https://www.hennessyfunds.com/insights/sector-highlight-japan-factory-automation

https://www.restaurantdive.com/news/mcdonalds-invests-billions-tech-google-cloud-accenture/
706735/

https://www.foxbusiness.com/technology/mcdonalds-unveils-first-automated-location-social-media-
worried-will-cut-millions-jobs
3. Automation is happening now

In 2018, Japan released 500 robot teachers to deal with the teacher shortage. These robot teachers can
speak Japanese and English, can talk and interact with students like a real teacher and do not need any
salary saving the Japanese government millions of dollars every year

https://www.zdnet.com/article/japan-set-to-deploy-english-speaking-robots-to-schools-report/

Medicine has also adopted automation. “Hinotori,” the first surgical robot in Japan to gain official
approval, started performing urological procedures in 2020, and since last year has been also used for
gastroenterological and gynecological operations. It is currently available at 31 medical facilities and has
helped 900 patients. Those numbers are expected to rise as use of the robot expands to respiratory and
other surgeries.

https://jstories.media/article/japans-first-surgical-robot