Breaking the Bottleneck | Issue 47
[4/28/2024] TSMC's New Process, Solar Reshoring, Infosys Cloud Report, & Hannover Messe Recap
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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News:
TSMC Introduces New A16 Process [Interesting Engineering]
Taiwan Semiconductor Manufacturing Company (TSMC) announced a groundbreaking development in chip technology with the unveiling of its A16 technology. This innovation is set to be implemented in the production of 1.6-nanometer (nm) chips by 2026, and it marks a significant advancement in semiconductor fabrication. The A16 technology introduces nanosheet transistors with a novel backside power delivery system, which improves logic density and performance by streamlining power distribution from the bottom of the chip, thus enhancing energy efficiency. This shift in power delivery architecture, already announced by Intel for its future 20A and 18A chips, represents a strategic focus on efficiency within the fiercely competitive chipmaking industry. Intel and Samsung are also progressing in this race, with Intel introducing its 14A technology and Samsung targeting mass production of 1.4nm chips by 2027. Nanosheet transistors, central to the A16 technology, are crucial as traditional scaling of transistor size has reached its physical limits. This technology, which will be used by TSMC and Intel starting from the 2nm node and by Samsung in its 3nm chips, allows for a complete restructuring of transistor design to continue performance enhancements as miniaturization advances.
US Solar Manufacturers Call For New Solar-panel Tariffs [Canary Media]
First Solar and Qcells, two major U.S. solar panel manufacturers, are part of a coalition seeking new tariffs on imported solar panels from Southeast Asia, specifically Cambodia, Malaysia, Thailand, and Vietnam. The coalition argues that Chinese manufacturers' dominance and influence on global solar markets is due to unfair trade practices like dumping (selling products below cost) and illegal subsidies, which harm domestic manufacturers. They propose anti-dumping and countervailing duties to offset these practices, with suggested penalties ranging from 70% to 272% of the module cost, depending on the country. However, the move is controversial within the broader solar industry. While the manufacturers support the tariffs to protect domestic industry, project developers and various industry groups such as the Solar Energy Industries Association and American Clean Power Association oppose them. They argue that tariffs could increase market volatility and hinder the growth of the U.S. solar sector, which is crucial for achieving the Biden administration's carbon-free power generation targets by 2035.
Key Solar Panel Ingredient Is Made in the U.S.A. Again [NY Times]
The REC Silicon factory in Washington shut down in 2019 and is set to resume operations, signaling a significant shift in the U.S. solar industry's reliance on foreign supply chains, particularly from China. The factory's revival is driven by a partnership with Hanwha Qcells, a South Korean firm investing heavily in U.S. solar production. Polysilicon, the primary material produced at the Moses Lake plant and a critical component in most solar panels, has traditionally been dominated by Chinese manufacturers, who make up over 95% of the global supply. The factory's restart is part of a broader initiative to enhance U.S. solar manufacturing capacity and reduce dependency on imported components. The plant is expected to play a crucial role in the local economy by employing about 200 people and expanding operations.
Volkswagen ‘The First Domino to Fall’ After Union Vote [Guardian]
Shawn Fain, president of the United Auto Workers (UAW), expressed optimism about the future of unionization across the US auto industry following a historic victory at a Volkswagen plant in Tennessee. This plant, the only non-union VW facility globally, voted overwhelmingly in favor of unionization, with 2,628 votes for and 985 against. This vote is part of a broader $40 million UAW campaign targeting 13 automakers with 35 non-union plants across the US. He expressed confidence that this victory would inspire similar outcomes at other plants, including an upcoming unionization vote at a Mercedes plant in Alabama, where workers have primarily led the campaign efforts. The UAW president criticized the anti-union stance of some corporate executives and politicians, particularly southern states' governors who have opposed the UAW's efforts, accusing them of siding with corporate interests over workers.
AI at the Edge: From Theory to Practice [The Next Platform]
IoT devices alone will produce 73.1 zettabytes of data. Edge computing has become essential to managing this efficiently. This method allows data to be processed close to its source rather than sent to distant centralized locations. It enhances processing speeds, reduces latency, and improves privacy and security. In manufacturing, the immediate processing of data from approximately 15 billion connected devices helps identify production flaws in real time, significantly improving quality control. Optimization techniques such as pruning and quantization help reduce the size of AI models, making them ideal for deployment in edge computing environments where hardware capabilities might be limited. These smaller models are more energy-efficient and maintain the performance levels of their larger counterparts, which is critical for applications requiring real-time processing.
Research:
Cloud Radar: Manufacturing Industry Report [Infosys]
Some interesting highlights from Infosys Cloud Radar’s latest research report,
Research and development (R&D) and product development emerged as the highest-ranked use cases for cloud computing in the manufacturing and automotive industries.
34% of vehicle launches in 2023 experienced production delays, a nearly seven-fold increase from 5% in 2018
Carrier migrated its on-prem engineering tools, and the new system reduced costs by 40% and provided flexibility to scale up or down. It also offered a 50% performance improvement for specific use cases.
Manufacturers spend $30 million annually on cloud services, slightly less than the global average across industries. Regarding purchasing decisions, 43% are made in isolation by the IT department.
Chart of the Week:
Podcasts/Video:
Hannover Messe Recap 2024
The Chat GPT of Robotics is Coming [Odd Lots]
Manufacturing Deals🏭💵
Markt-Pilot - A German pricing and lead time optimization engine SaaS for manufacturers' regular and spare parts
$43 million [Sereis A] - Led by Insight Partners and joined by Capnamic\
Chemix - A company developing algorithms to design and optimize novel batteries for electric vehicle makers
$20 million [Series A] - Led by Ibex Investors
Found Energy - A company developing an aluminum-thermal power system designed to generate carbon-free industrial heat and hydrogen
$12 million [Seed] - Raised from KOMPAS VC, Munich Re Ventures, Good Growth Capital, the Autodesk Foundation, J-Impact, GiTV
HighByte - A company building a data contextualization and data unification product for manufacturers
$12 million [Series A] - Led by Standard Investments and joined by Exposition Ventures and Maine Venture Fund
Condoit - A platform designed for designed for electricians to collect and manage electrical data
$4.3 million [Seed] - Led by Westly Group and joined by joined by Fontinalis Partners, Navitas Capital, and C2 Ventures
Rivet - A workforce management platform for electrical construction labor
$6 million [Seed] - Led by Brick & Mortar Ventures and joined by defy.vc, Augment Ventures, Detroit Venture Partners, and Michigan Rise
Planned Downtime 🏭🧑🔧
The Space Hopper Project
3 Predictions for the Future of Music