The Business Times
business-time-50

Economic power is returning to the physical realm

Why hardware, not software, is eating the world

Summarise
google-preferred-sourceAdd BT as a preferred source
阅读简体中文版 (beta)
    • Taiwan, Japan and South Korea dominate critical segments of semiconductor manufacturing, advantages that rest not on software alone, but on decades of accumulated engineering expertise.
    • Taiwan, Japan and South Korea dominate critical segments of semiconductor manufacturing, advantages that rest not on software alone, but on decades of accumulated engineering expertise. PHOTO: REUTERS

    Paul Achleitner

    Published Wed, Mar 11, 2026 · 06:04 PM

    FOR more than a decade, the assertion by venture capitalist Marc Andreessen that “software is eating the world” captured the logic of economic power. Digital platforms reshaped industries, software firms eclipsed manufacturers, and competitive advantage appeared increasingly detached from physical constraints.

    That world view influenced corporate strategy and public policy alike. It is now breaking down. Software remains essential, but it is no longer scarce.

    Artificial intelligence (AI) has turned software into an abundant input. Code can be generated, tested and optimised at next to no marginal cost. In many applications AI does not merely improve software; it replaces it. As software becomes commoditised, it loses its power to differentiate.

    Global economyArtificial IntelligenceS-chipsSoftwareQuantumRare earth metals

    TRENDING NOW

    Traffic through the strait has been resuming but with interruptions, and there is still little clarity over a permanent solution for passages through the chokepoint.

    Qatari LNG ship struck in Strait of Hormuz, testing US talks

    This comes after a Citi note on Tuesday that lifted target prices for all Singapore banks, with a leading preference and “buy” call for DBS.

    DBS shares rise 1.9% to hit all-time intraday high as sentiment improves

    Aster deputy CEO Andre Khor, citing the age of the “polycrisis”, says: “It’s very important to be agile, to be focused on execution… We don’t know all the answers but we keep going forward.”

    ‘Baptism of fire’: Andre Khor on leading Singapore refiner Aster through an energy crisis

    Singapore ranks as the world’s most expensive city for cars and placed third globally for residential property.

    Singapore retains top spot as most expensive city for HNWIs, with five Apac cities in global top 10

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More