Breaking the Bottleneck is a weekly manufacturing technology newsletter with perspectives, interviews, news, funding announcements, and a startup database. For a high-level market map on discrete and continuous manufacturing click the link here! If you know anyone looking to chat about manufacturing tech, I’d love to talk!
Content I Enjoyed This Week 🏭🗞️🔬
News:
The World Is In the Grip of a Manufacturing Delusion [Economist]
Governments are investing heavily in manufacturing as a solution to climate change, job loss, geopolitical tensions, and weak economic growth. This is particularly evident in the United States, China and India, however, the effectiveness of these efforts is being questioned. Proponents argue it provides solid jobs, drives innovation and growth, supports the green transition, and reduces dependence on foreign countries. However given the shifting labor demographics, there's been a shift towards high- and low-level service sector jobs manufacturing, the wage premium has decreased, and high-tech factories are now highly automated, offering limited employment opportunities for individuals with low qualifications. Economically, studies suggest that the productivity gap between manufacturing and services and other professions has narrowed, with services, including tech-related fields. So it is unclear if a significant amount of capital should be put towards manufacturing and not other industries showing fast productivity growth. Finally, In response to supply chains research suggests that diversification of supply chains may be more effective in building resilience than reshoring production entirely.
The Manufacturing Backlash: No Factory in My Backyard [Reuters]
Ford Motor Company's plans to build a large battery factory in Michigan have faced opposition from local residents, reflecting broader resistance to large-scale manufacturing projects in the United States. The factory, intended to produce batteries for electric vehicles and create 2,500 jobs, has been met with concerns about environmental damage and the involvement of a Chinese company in the project. Critics argue that the community was not adequately involved in the decision-making process. Opposition to such projects, known as NIMBY (Not In My Back Yard), is increasing across the country, posing challenges to the Biden administration's efforts to revitalize manufacturing. Despite the push for a manufacturing renaissance, factory work constitutes a smaller share of the U.S. job market, and the growth of manufacturing jobs has been niche rather than widespread. The resistance to large-scale manufacturing projects reflects the complexities and challenges of promoting industrial development in communities.
Foxconn Abandons India Chip Venture With Vedanta [WSJ]
Taiwan's Foxconn Technology has terminated its partnership with India-focused conglomerate Vedanta to make chips, dealing a blow to India's ambitions of becoming a semiconductor manufacturing hub. The $20 billion collaboration, announced last year, aimed to set up a plant in Gujarat as part of India's "Make in India" program. However, Foxconn has decided not to move forward with the joint venture, citing the need to explore other development opportunities. Vedanta, which now fully owns the project, remains committed to establishing India's first foundry and has secured a license from a chip maker for manufacturing a more established type of chip. While the dissolution of the joint venture does not impact India's chip-making plans, experts suggest that the setback could pave the way for more experienced semiconductor players, such as Micron, to contribute to India's semiconductor industry.
Industrial Order Slowdown Perplexes Investors [Bloomberg]
Investors' interpretation of industrial earnings is being distorted by the push-and-pull dynamic between supply chains and orders. While Caterpillar Inc. reported robust first-quarter results and a positive outlook for 2023, its flat order backlog and expectations of scaling back inventory stockpiles led to a drop in its share price. On the other hand, Rockwell Automation Inc., which also reported strong results, saw its shares rise as investors accepted its explanation that improved component availability and shorter waiting times were responsible for a slight moderation in future orders. This dynamic is reflective of the broader debate around whether the industrial sector can withstand an economic slowdown or if a long-anticipated slowdown is imminent. The boom in factory investments and construction spending driven by government funding is also being examined to assess its potential to insulate the industrial sector from economic headwinds. However, recent commentary from companies in commercial construction and manufacturing has raised concerns. Investors are distinguishing between companies with direct exposure to commercial construction, which is seen as undesirable, and those with exposure to structural growth trends such as automation and electrification, which are viewed more favorably. This distinction is leading to peculiar investor behavior and a complex assessment of companies' prospects in the industrial sector.
Energy Department Invests $45M to Bolster US Solar Manufacturing [US GOV]
The Biden administration announced $45 million to support U.S. manufacturing of solar components last week, reducing reliance on imports as it works to reshore solar production. The Energy Department will fund up to 12 projects to help establish a network of domestic manufacturers focused on supplying key materials along the value chain, including polysilicon production, silicon ingots and wafers, solar cells, and equipment, according to a news release. Funding will also support the development of new dual-use solar technologies to create new markets.
Applied Materials Launches Wafer Manufacturing Platform [Cleanroom Tech]
Applied Materials has unveiled its Vistara platform, a wafer manufacturing platform designed to address the challenges faced by chipmakers. The platform offers flexibility, allowing for a wide variety of chamber types and configurations, enabling the development of Integrated Materials Solution (IMS) recipes that combine sequential wafer manufacturing process steps. Vistara also incorporates intelligence through its sensors and AI software, enabling real-time data analysis and optimization of chip performance and yield. In addition, the platform prioritizes sustainability by reducing energy consumption, chemical use, and cleanroom footprint, aligning with Applied's "3x30" initiative to achieve 30% reductions in these areas by 2030.
Research:
MIT Develops New Motion Planning System for Robots [TechCrunch]
Researchers at MIT CSAIL have developed PIGINet (Plans, Images, Goal, and Initial facts), a neural network designed to bring task and motion planning to home robotic systems. The system focuses on kitchen-based activities and uses a transformer encoder to combine task plans, images of the environment, and symbolic encodings of the initial state and desired goal to generate predictions about the feasibility of selected task plans. PIGINet has shown promising results, reducing planning time by 80% in simpler scenarios and 20-50% in more complex situations. The researchers aim to further refine PIGINet and expand its applications beyond households, potentially revolutionizing the way robots are trained and applied in various environments.
Everything You Need to Know About Heat Pumps [MIT Technology Review]
Heat pumps are becoming increasingly popular as a home appliances due to their cost savings and climate benefits. These devices, which have been used in homes since the 1960s, gather heat from one place and transfer it to another to either cool or heat buildings. They work by using a refrigerant that moves in a circuit, absorbing and releasing heat as it goes. Heat pumps can be used for both heating and cooling, and they can operate in reverse to meet the desired temperature needs. Recent advancements in heat pump technology have made them more efficient and better equipped to handle cold weather. Despite claims that heat pumps don't work well in extreme cold, they have been successfully used in places like Alaska and Scandinavia. Heat pumps help mitigate climate change by relying on electricity from the grid, which increasingly comes from renewable and low-carbon sources. They can achieve high efficiencies, putting out more heat energy than the electricity they consume. While up-front costs can be a barrier, heat pumps are cheaper to buy and operate over their lifetime compared to other systems for some consumers. Incentive programs and subsidies in various countries further promote their adoption. Continued advancements in heat pump design and refrigerants, as well as decreasing costs, are expected to drive further growth in the market.
Podcasts/Video:
Climate Change & Manufacturing [Advanced Manufacturing Now]
Unlocking the Latest Manufacturing Trends [Drug Solutions Podcast]
Twitter/Reddit:
Manufacturing Deals
Nami - A singaporean company building intelligent sensing solutions to revolutionize smart buildings and homes
$10.5 million [Series A] - Led by Verizon Ventures and joined by Amavi Capital, INSPiRE and Aconterra
SpecterOps - A company providing adversary-focused cybersecurity solutions for IT/OT networks
$8.5 million [Series A] - Led by Ballistic Ventures