Global Lighthouse Network

AI can potentially deliver the semiconductor industry operational gains of $85-$95 billion annually in earnings before interest by 2025. In reality, roughly 90% of this figure remains theoretical.

The state of manufacturing is changing rapidly. Regardless of sector or location, manufacturing decision-makers across the world are signaling a desire for better supply chain resiliency, manufacturing flexibility, increased speed of innovation and stronger environmental sustainability. Singapore’s manufacturing sector, a significant contributor to its gross domestic product, is always evolving and today is shifting away from its traditional focus on producing highly customized products using flexible manufacturing processes, but at significantly lower efficiencies. Today, with Industry 4.0, we can design manufacturing systems that optimize both efficiency and flexibility. And this is possible because of the convergence of technologies such as artificial intelligence (AI), data analytics, robotics and the Industrial Internet of Things (IIoT). This blend of technologies helps reduce the cost of technological solution ownership – a derivative of Right’s Law – as a function of cumulative production. In HP Singapore, driving innovation in our product and processes is part of our DNA, and over time our products have grown in complexity and breadth. We have embraced Fourth Industrial Revolution (4IR) technologies in our advanced manufacturing lines. We started our Industry 4.0 journey in 2016 with Vision and Mission 2020 to modernize our production facilities to smart factories that strengthen our competitive edge. Our focus was on upskilling our employees with future skill sets, build new technological capabilities and partner with higher education institutes. To drive these transformations, we have formulated five pillars: Additive Manufacturing Data Analytics Cyber-Physical Integration Digitalization Workforce Transformation These five pillars have enabled us to move from labor-intensive and reactive processes to processes that are highly digitized, automated, and AI-driven, enabling us not only to increase quality and productivity but also to reskill our people in anticipation of jobs they will need in the future. Technicians have been upskilled and promoted to techno-operators which has, in turn, freed up technical specialists to explore other roles. Engineers have retrained as data scientists, or have moved to new product development, for instance. In 2017, HP’s Ink Supplies Operations (ISO) set up Smart Manufacturing Applications and Research Centre (SMARC) to adopt 4IR technologies and implement these innovations in production lines. Today, SMARC is the home ground for HP engineers to experience, trial and prototype solutions, bringing innovative and sometimes unexpected solutions to manufacturing. It is also a showcase for industry partners, government agencies and schools. Here is how each pillar of the SMARC contributed to transformation to augment the manufacturing workforce: Cyber-Physical Integration – Move Role of robotics/automation – By standardizing automation standards for robotics, we have deployed collaborative robots (Cobots) and autonomous intelligent vehicles (AIVs) to perform manual and routine tasks to drive productivity, while reducing errors from operator fatigue and protecting our operators’ physical well-being. Digitalization – Sense Role of IIoT – Devices are a treasure trove of data that can provide clarity on how the entire manufacturing line is performing in real time. Building a platform that connects devices and collects data while allowing factory floor managers to dynamically visualize on an Integrated Command Centre (ICC) and manage factory performance is central to HP’s digital transformation journey. And IIoT is not restricted to just devices that are already wired for data sharing. HP has also connected off-the-shelf analogue devices using a standardized data transportation protocol, allowing HP to collect essential data across all types of devices and eliminating manual data entry. Additive Manufacturing – Build By embracing additive manufacturing (use of HP MultiJet Fusion 3D printers), HP introduced more flexibility in operations through on-site rapid prototyping, light production, and replacement of parts needed on our manufacturing floors, shortening production timelines. We 3D printed pallets, which are cheaper and faster to produce, and replaced original pallets for transportation on conveyor belts, improving the efficiency and productivity of our operators. Director Jamie Neo with HP’s MultiJet Additive Manufacturing Printer. (Photo Credit: HP) The HP Multi Jet Fusion 3D printing technology has helped HP to replace traditional manufacturing methods and streamline processes in our supply chain. For example, HP is 3D printing the Drill Extraction Shoe, a tool that is essential to the removal of waste products from laser-drilling in HP’s printhead manufacturing line. Through 3D printing, HP has consolidated the production of the tool from nine parts to one 3D printed model, thereby optimizing the design of the tool and reducing its production time from three to five days to 24 hours. Data Analytics – Think By deploying advanced analytics and machine learning models, HP has enabled real-time detection, diagnostics, and prediction of product quality across our manufacturing lines. Predictive models are replacing traditional “destructive testing,” reducing waste and allowing HP to meet unique product specifications more accurately. Machine learning is diagnosing and recommending the right set up for tools and manufacturing lines, when necessary, to reduce downtime and increase precision. Workforce Transformation – Grow The pivot to becoming an advanced manufacturing leader not only requires HP to invest in 4IR technologies but also skill sets to operate 4IR technologies. We embarked on a Workforce Transformation program to help our employees stay competitive in a fast-changing world. Today 35% of HP technical workforce have had the opportunity to take on new roles even as needs evolve, thanks to internal and external training and reskilling. Beyond technology and training, the glue that binds these together and makes it successful is our culture at HP. We are ambition-led, which means that we do not see the world as it is, but what we can be. And we do so by collaboration. Plans for the Future After accomplishing our Mission 2020, in late 2020 we launched Mission 2025 to extend our end-to-end smart factory capabilities through advanced connectivity, intelligence and automation to optimize and drive sustainable manufacturing flexibility and efficiency. Pyramid of HP’s smart manufacturing focus Advanced technologies such as additive manufacturing, IIoT, automation and robotics, data analytics, machine learning and AI are central to the connectivity and the end-to-end intelligence of our smart factories, enhancing production efficiency and flexibility while improving the quality of our products. For example, the deployment of IIoT sensors in our wafer plant has helped to reduce downtime in replacing CO2 gas cylinders. What’s more, AI enables us to more accurately monitor the dispensing of structural adhesive to eliminate lost yield. We believe that by enhancing manufacturing efficiency and flexibility, we were able to shorten resolution time, reduce our carbon footprint, and improve the resiliency of our manufacturing and supply chain systems. HP smart factory model In April 2021, two lines in HP Singapore joined the World Economic Forum’s Global Lighthouse Network after being recognized for pivoting from a labor-intensive factory into a digitized, automated one with the help of AI. In doing so, we managed to improve manufacturing costs by 20% and productivity by 70%. Under Mission 2020, we saw the following successes: Improved manufacturing costs by 20% Improved productivity by 70% Brought most HP employees onboard to our smart manufacturing journey Equipped HP employees with skill sets in areas such as additive manufacturing, data analytics, AI, robotics and Internet of Things Established a Model Factory playbook With Mission 2025, we will: Continue to train employees in future skillsets by partnering with institutes of higher learning Scale our Model Factory playbook across more manufacturing lines to reduce costs and improve productivity Enhance our knowledge in additive manufacturing by building an ecosystem as a service platform to help manufacturing companies Enable a sustainable manufacturing system to reduce our carbon footprint and help enable a circular economy We believe in innovating with purpose by focusing on solving real-world problems and creating technology in the service of humanity. That is why we built the SMARC to create the solutions for our lines and showcase these solutions to encourage industry participation. We are driven by values and ambition, which means that it is not just what we do, but also how we execute it. We make sure our values inform everything we do – for instance, helping us make a greater impact to environmental sustainability, people, and our community. We believe this is a crucial step in coalescing industry support, which is necessary to move the needle on advanced manufacturing. Robert Ronald is Master Program Manager, Cost Structure, Model Smart Factory and Sustainability, at HP.

Making Strides TogetherKnowledge is power – especially when it is shared. This principle formed the foundation for Micron’s Go and See virtual visit of its Singapore manufacturing plant on 26 August 2020 as 27 companies including GLOBALFOUNDRIES, ST Microelectronics, Infineon, TEL, ViTrox , IBM, HP and UTAC joined the first-of-a-kind virtual factory visit. The chip industry powerhouses gathered to see how Micron’s Lighthouse frontend wafer fabrication facility leverages Fourth Industrial Revolution technologies to drive new production and cost efficiencies.They saw clear markers of a transformed organisation and spoke with working-level staff, managers and front-line employees. Company representatives also met virtually with Micron management teams from organisations that led its digital transformation – from pilot programs to integration at scale – to realise significant financial and operational benefits. The mix of technologies they deployed to make it all happen included artificial intelligence (AI), big data analytics and the Industrial Internet-of-Things (IIoT).Micron’s Singapore-based fab facility earned Lighthouse certification earlier this year from the World Economic Forum’s Global Lighthouse Network. The Go and See tour was co-sponsored by SEMI Southeast Asia and McKinsey Company.Transformation is CrucialBy embracing Lighthouse principles, semiconductor sectors and companies can accelerate their digital transformation to boost operational and financial efficiency while helping increase productivity across the electronics supply chain. It will take time for Southeast Asia semiconductor manufacturers to transform to digital operations, though we’re seeing growing interest in Industry 4.0 practices as they begin to understand that the deployment of new technologies and applications will help them better understand real-world benefits of smart manufacturing use cases and solutions. SEMI believes shining the spotlight on companies like Micron can illuminate the way forward for other companies to help drive the industry’s digital transformation. We look forward to seeing companies build on this momentum as they start to leverage leading-edge technologies to improve efficiencies and promote sustainability.Bee Bee Ng is president of SEMI Southeast Asia.

The world’s most advanced manufacturing factories are leading the way in driving efficiency and sustainability.In advance of its 2020 meeting, the World Economic Forum welcomed Micron into its Global Lighthouse Network, a group of advanced manufacturers “that are showing leadership in applying the technologies of the Fourth Industrial Revolution to drive operational and environmental impact.”For years, Micron has been helping clients integrate artificial intelligence (AI), big data analytics and the industrial internet of things (IIoT) into their factories. And now Micron’s factory is one of the first facilities in Singapore, along with Infineon, to be recognized by the Global Lighthouse Network.In a recent interview with Channel News Asia, Manish Bhatia, executive VP of Global Operations, explained how Micron has been practicing what it preaches: “Our products enable new technology trends such as IoT, 5G, cloud computing and autonomous driving. Applying these technologies in our own manufacturing facilities demonstrates the enormous potential in driving business value. Industrial IoT and artificial intelligence are part of the biggest revolution since the advent of robotic manufacturing productivity 50 years ago.”For Micron, this journey started with the need to “keep pace with the technological advancement of our semiconductor processes,” Manish said. “We wanted to provide higher-capacity, higher-performance, lower-cost and lower-power chips.”This meant embarking on the same journey they guide clients through: “We started by focusing in 2014 on simple statistical analysis to improve our production processes,” Manish said. “Following that, we developed more complex deep learning and AI capabilities to draw insights from our data. Most recently, we introduced IoT sensors — like cameras and acoustic sensors — to gather even more data that allows us to further improve our production processes.”The Singapore factory plays a critical role in developing leading-edge NAND. Micron’s Singapore presence, composed of two wafer-fabrication facilities and one assembly and test facility, serves as the base for worldwide operations. With over 500,000 square feet of cleanroom space, the location is also a designated NAND Center of Excellence, driving the implementation of the company’s leading-edge 3D NAND production for use in mobile phones, solid-state drives, digital cameras and more. Micron employs approximately 8,000 people in Singapore.The World Economic Forum says the results of the Singapore transformation have been spectacular: Micron’s “semiconductor fabrication facility has integrated big data infrastructure and IIoT to implement artificial intelligence and data science solutions, raising product quality standards and doubling the speed at which new products are ramped.”Below are notable achievements that Micron was recognized for: Automation of production and maintenance produced a 4% tool availability improvement. The IIoT-enabled smart factory led to a 22% scrap and product downgrade reduction. Advanced analytics for process optimization with OEMs reduced time to ramp new products by 50%. Deep learning optical-defect detection created a 2% yield improvement. The integrated deviation management platform reduced time to resolve quality issues by 50%. Micron was a natural choice for the Global Lighthouse Network, an organization whose creation is timely. The World Economic Forum points out that “global production industry is lagging in its adoption of Fourth Industrial Revolution manufacturing technologies, with more than 70% of companies stuck in pilot-phases … [There is] a need for a neutral learning platform to showcase top-use cases, roadmaps and organizational approaches to adopting and scaling technologies from which other companies globally could benefit.”As part of the Global Lighthouse Network, Micron will be able to share knowledge and best practices with peers, support new partnerships and help other manufacturers deploy technology, adopt sustainable practices and transform their workforces. We can all build on this community of like-minded organizations, levering technology to improve efficiencies and promote sustainability.This recognition from the World Economic Forum is a win-win. We look forward to joining the club of lighthouse factories around the world and to helping propel the entire global manufacturing industry into the Fourth Industrial Revolution. At Micron, we are at the forefront of this transformation and welcome the opportunity to serve as a lighthouse.Koen De Backer is responsible for driving Micron’s smart manufacturing initiatives and digital operations including capabilities with IoT, artificial intelligence, advanced analytics, cognitive computing and machine learning to enhance Micron’s business, global operations and product development. Prior to joining Micron, Mr. De Backer led large-scale operations projects for more than a decade to help clients reduce inefficiencies and achieve excellence in manufacturing, procurement, supply chain and support functions.Most recently, De Backer was a partner at McKinsey Company, where he steered the semiconductor consulting practice in Southeast Asia and was one of the firm’s leading experts on applying artificial intelligence and automation techniques across operations and support functions such as finance, human resources and procurement. Additionally, Mr. De Backer consulted with high-tech global clients while working at Deloitte Consulting, Altran Europe and CSC. Mr. De Backer holds a master’s degree in business administration from INSEAD and a master’s degrees in both industrial management and electromechanical engineering from Katholieke Universiteit Leuven.De Backer is also chairman of the SEMI Southeast Asia Smart Manufacturing Chapter. For information on participating in the chapter, contact Shannen Koh at [email protected].