Microsoft will set up its largest artificial intelligence and Internet of Things lab in the world in Pudong New Area in April, the company said yesterday.

The new lab will cover 2,800 square meters in Zhangjiang, which is establishing itself as Shanghai's AI heartland.

China is will begin large-scale 5G tests and trials this year, which will fuel development not only of telecommunications but also IoT and industrial applications, says Industry and Information Technology Minister Miao Wei.

Global computer services and software company PTC says between now and 2026, US manufacturers need to fill almost 3.5 million manufacturing jobs — but about 2 million of these may go unfilled because of a skills gap. 

Augmented reality and a connected workforce through IoT are the "answer to the manufacturing employment gap," says PTC.

PTC has a demo center in Shanghai and offers products and services in areas such as product lifecycle management, IoT and AR.

Computer services and networking company Avnet Inc, which also operates in Shanghai, says IoT and sensors are essential technologies for the future.

A recent survey by the company of 1,190 engineers found 26 percent saw IoT as the most important developing technology last year compared with 25 percent for AI.

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