Breaking the Bottleneck | Issue 45
[4/8/2024] TRI Robots, ASML's Dominance, Deloitte & NAM Skills Report, & More!
Breaking the Bottleneck is a weekly manufacturing technology newsletter with perspectives, interviews, news, funding announcements, manufacturing market maps, and a startup database!
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Content I Enjoyed Last Week 🏭🗞️🔬 📚
News:
Taiwan Earthquake Tests Readiness of World’s Chip Hub [WSJ]
TSMC briefly evacuated some locations, suspended work, and estimated production delays to be between six and ten hours at certain plants after last week's 7.4-magnitude earthquake. Initial inspections indicated that safety systems were functioning correctly, and no injuries were reported. However, TSMC acknowledged that a small number of tools were damaged, impacting operations, though critical tools remained unharmed. The earthquake highlighted the delicate nature of semiconductor manufacturing. The silicon wafers used in the process are thin and require precise handling in controlled environments. Any imperfection can lead to their discard, and even brief shutdowns can significantly affect production and incur substantial costs due to the complexity of restarting operations. TSMC has learned from past disasters, such as the 2011 earthquake and tsunami in Japan and a 1999 quake in Taiwan. The company has implemented measures like building dampers to absorb seismic energy and conducting regular drills to reduce property loss and expedite operational recovery. Furthermore, TSMC’s website states that its earthquake insurance is designed to cover business losses under severe conditions, and its buildings are constructed to withstand earthquakes, similar to the recent one. Finally, TSMC's internal emergency guidelines include evacuating clean rooms at a level four shaking and a complete site evacuation at level five, including shutting down gas and chemical systems to prevent toxic leaks.
TRI’s Soft Robot for Whole-Body Manipulation Research [TRI]
How ASML Took Over The Chipmaking Chessboard [MIT Technology Review]
In San Jose, California, the SPIE Advanced Lithography and Patterning Conference witnessed the gathering of chip industry professionals to honor Gordon Moore, Intel's co-founder. Key figures like former Intel CEO Craig Barrett and immersion lithography pioneer Burn-Jeng Lin paid homage to Moore. Moore's Law, the principle that the number of transistors on a chip doubles approximately every two years, has driven the chip industry, particularly as transistor sizes shrink to a few nanometers. ASML's advanced lithography machines have been crucial in sustaining Moore's Law through innovations like extreme-ultraviolet (EUV) lithography machines, introduced widely in 2017, and the development of high-numerical-aperture (high-NA) and hyper-NA EUV machines, to enable further miniaturization of the transistor. ASML's journey to market dominance, particularly after the release of its EUV machine in 2017, followed years of technological and financial challenges. Despite skepticism, its commitment to extreme ultraviolet lithography has paid off, resulting in a near-monopoly in advanced chipmaking machinery. The company's evolution involved navigating various technological shifts, from visible light to ultraviolet in photolithography, and adapting to changing demands like the recent surge in AI-related computing power requirements. ASML's success is also reflected in its supply chain strategy, acquiring key component manufacturers and aligning closely with major customers like Intel, Samsung, and TSMC.
Seeq and AspenTech Accelerate Self-Service Industrial Analytics [AWS]
Seeq, a leader in analytics for process manufacturing industries, leverages Amazon Web Services (AWS) and Aspen InfoPlus.21 (IP.21), an industrial process historian designed to capture and manage large volumes of time-series data, for its platform. Seeq on AWS facilitates the utilization of isolated operational technology (OT) data collected in IP.21. Seeq features a no-code/low-code environment, interactive dashboards, and reporting capabilities, making it accessible to subject matter experts with various skill levels. The platform’s capabilities include asset and process performance monitoring, where it scales calculations across assets and sites, integrates data into risk-based maintenance planning, and compares equipment and process profiles. In production optimization, Seeq combines time series and event data to identify process phases, calculate key metrics, and streamline process documentation and problem resolution. The setup also allows for comprehensive data analysis, enabling SMEs to enrich and label data for advanced workloads, integrate anomaly detection, and provide feedback on ML models.
Defending Against IoT Ransomware Attacks [VentureBeat]
Keyfactor’s report highlights that 93% of organizations struggle to secure their IoT and connected products. IoT sensors have become prime targets for cyberattacks, with a 400% increase in IoT and OT malware attacks last year. The manufacturing industry, experiencing around 6,000 weekly attacks, was the most targeted sector. Botnets like Mirai and Gafgyt, responsible for 66% of attack payloads, primarily use IoT devices for distributed denial-of-service (DDoS) attacks. DDoS attack services, facilitated by IoT botnets, are thriving in the dark web market, with more than 700 ads found in the first half of last year. Prominent IoT ransomware includes DeadBolt, a WannaCry variant, and others like Mirai and BASHLITE. Ransomware attacks against industrial sectors like manufacturing have increased by 50%, with attackers targeting revenue-generating operations. Strategies to combat these threats include:
Monitoring and Scanning Network Traffic: Security and information event management (SIEM) systems are crucial for detecting breaches. Popular SIEM providers include Cisco (Splunk), CrowdStrike, and Fortinet.
Enforcing Least Privilege Access: To prevent breaches, it is vital to tighten access for endpoints and IoT devices and audit identity access management (IAM) and privileged access management (PAM) roles.
Implementing MFA: MFA is a fundamental step in securing IT infrastructure, especially crucial for IoT devices often set with default passwords.
Applying Microsegmentation: Particularly important for IoT sensors, microsegmentation isolates network segments to reduce attack surfaces. Leading vendors in this space include Akamai, Cisco, and Palo Alto Networks.
Deploying Risk-Based Conditional Access: Utilizing machine learning algorithms for risk scoring, this approach tailors access based on various risk factors. Leading vendors with ML expertise include Broadcom, CyberArk, and Microsoft.
Streamlining Patch Management: Improving patch management, potentially automated with AI and ML, is crucial.
Supercharging Battery Manufacturing [Engineering.com]
A recent report by Benchmark Mineral Intelligence reveals plans to invest over $300 billion in battery gigafactories, by 2027. Gigafactories, spanning several million square feet and covering vast land areas, aim to produce high volumes of battery components and products cost-effectively. However, scaling up battery production in gigafactories presents multiple challenges:
Energy Density and Charging Speed: Batteries need to be compact yet powerful and recharge quickly. Improving material chemistry and cell design to enhance energy density and charging speed while maintaining safety and durability is crucial.
Scale-Up Time: It typically takes seven years to start and scale production in a gigafactory, with battery manufacturing machines requiring an 18-month lead time.
Scrap Rate: Large-scale battery production facilities can have up to 40% scrap rates during ramp-up, which later stabilizes but remains around 15%. Reducing scrap rates is essential for sustainability and profitability, with a potential saving of $200 to 300 million per year for a 30 GWh factory.
Traceability: Upcoming regulations, like the EU mandate for electronic battery passports by 2027, require enhanced traceability in manufacturing processes.
To address these challenges, Siemens and Capgemini have partnered to offer integrated digital twins and virtual replicas of products or processes. They will allow for low-risk battery design and assembly line optimization, enabling the simulation and validation of designs/manufacturing processes before physical implementation.
Research:
Manufacturers Support Growth with Active Workforce Strategies [Deloitte & NAM]
The survey conducted by Deloitte & NAM involved more than 200 US manufacturers, interviews with more than 10 senior executives from manufacturing organizations of all sizes and across all sectors, and an extensive collation of secondary data on labor supply and demand. Some interesting notes from the study:
If workforce challenges are not addressed, more than 1.9 million of the up to 3.8 million jobs likely to be needed between this year and 2033 could go unfilled.
“Pandemic-driven shifts have already created hundreds of thousands of new jobs, and now we are seeing increased demand for digital skills that need to be met or risk further widening of the talent gap.”
Some 65% of manufacturers polled said attracting and retaining talent is their primary business challenge.
About 90% said they are forming at least one partnership to better attract and retain employees, and on average, they have at least four such partnerships.
Approximately 47% indicated that apprenticeships, work-study programs, or internships at manufacturing companies would be the most effective ways to increase interest in the industry.
Some 47% also said flexible work arrangements—such as flex shifts, shift swapping, and split shifts—have been their top retention tool.
2023 Battery Report [Volta Foundation]
The PDF version of the 2023 Battery Report is out. Some interesting takeaways:
Electric vehicles soon to reach ‘normal’ price level - In the wake of intense competition in the electric car market, the average price of electric vehicles has fallen by 25% or $15,000 since September 2022. As a result, the price difference between electric cars and conventional combustion vehicles is now less than $3,000.
Oversupply of raw materials causes prices to fall - The report points out another positive development in the field of raw materials, as prices fell in 2023 due to an oversupply compared to demand. This has led to a 16% reduction in the price at cell level, bringing the price down to $107 per kilowatt-hour. Given China’s dominant position in the graphite area and due to the new restrictions on graphite exports, there is an increased focus on developing graphite plants in locations outside China. This move is driven by the need to reduce dependence on a single market.
A trend towards large prismatic LFP cells - Another trend is emerging in the battery form factor area, where there is an increased inclination towards large-format prismatic lithium iron phosphate (LFP) cells for electric vehicles as well as stationary energy storage systems. According to the report, this development signals a shift in consumer and industry preferences for battery technology.
Podcasts/Video:
Why the Industry Has Struggled to Adopt Simulation Tools [TCT]
Manufacturing Deals🏭💵
Alsym Energy - A developer of next-generation non-flammable rechargeable batteries for stationary storage, marine and mobility applications.
$78 million [Series C] - Co-Led by General Catalyst and Tata and joined by Drads Capital, Thomvest, and Thrive Capital.
Ailytics - A company building Video Surveillance Systems (VSS) to enhance safety and maximize productivity in industrial operations
$2.7 million [Seed] - Led by Tin Men Capital and joined by Aurum Investments and AngelCentral.
Protiv - A solution that directly links your project budgets to team incentives, with worker level visibility, tracking and rewards.
$2.4 million [Seed] - Co-Led by Lightbank and Las Olas VC and joined by Parameter Ventures and Early Light Ventures
Planned Downtime 🏭🧑🔧
The Rise and Fall of 3M’s Floppy Disk [IEEE Spectrum]
How Rare is the 2024 Eclipse?