Industry 4.0

SEMI spoke with Rebecca Dobson, Corporate Vice President EMEA at Cadence Design Systems, about semiconductor industry growth drivers and why semiconductor design is crucial to meeting device scaling challenges today and beyond.

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.

Massive capacity expansions will necessarily integrate advanced Industry 4.0 standards, practices and technology to achieve the highest possible operational efficiency and performance at the start of volume production.

The year 1981 was notable for a variety of technology breakthroughs. Few could have predicted just how dramatic an impact the global electronics industry would have in the following 40 years, as it now touches almost every aspect of our daily lives.

During their session Creating a Data Ecosystem to Enable End-to-End Advanced Predictive Manufacturing, Laura Matz of EMD & Raj Narasimhan of Micron provided a case study of their uncommon partnership in creating a shared data ecosystem to prove the advantages of advanced predictive manufacturing.

Semiconductor device manufacturers are focusing on new sensing technologies that can increase wafer throughput, reduce downtime, boost yields and drive other production efficiencies by collecting data that provides insights not previously identified.

Demand for hi-tech manufactured goods is at an all-time high and is expected to grow significantly in our new digital age, COVID-19 economy. This is especially true for semiconductor chips. Chip manufacturers have been working to meet this demand by building new factories and by optimizing processes and equipment in existing fabs. While there is much media coverage about new factories planned by leading-edge chipmakers and government investments in the semiconductor sector, greenfield fabs entail significant capital expenditures and are sometimes fraught with complex political concerns. As a result, they can take several years to complete and reach their planned production capacity. Instead, the semiconductor industry needs to optimize existing factories in order to increase productivity and yield and meet growing demand by implementing smart manufacturing solutions. Smart manufacturing solutions will inherently reduce costs with more efficient and automated processes, and those savings can be reinvested for the next wave of solutions. Chip Industry on the Bleeding Edge Semiconductor manufacturers have always been focused on bleeding-edge technology to outflank strong competition and build the best products – faster and cheaper. Today, pioneering organizations are using data to optimize manufacturing processes and equipment, a practice known as Smart Manufacturing. While there are many definitions of Smart Manufacturing, the essence is maximizing the utility of big data generated in these factories by leveraging three pillars: Sensing, Connecting, and Predicting. It is not just the digitization in manufacturing, but it is also about turning the data into actions that generate value – an effort the SEMI Smart Manufacturing Committee is driving based on the three pillars. Optimizing return on investment is the ultimate goal. SEMI Smart Manufacturing Initiative activity is based on three pillars that support the goal of increasing ROI. Making the Right Decision, Faster Smart manufacturing practices enable organizations to make the right decisions and take action faster based on insights generated from real-time and historical data. This requires data management technologies and applications that can process, analyze, and act on information instantly. It has become ever more difficult to process and discern the relevant data or signal from the vast volume of data, perform analytics or develop new ML or AI analytic tools, and then make the critical decisions to solve problems as close to real-time as possible. Who’s Responsible – IT or OT? In the past IT (Information Technology) and OT (Operations Technology) were separate entities within organizations, with IT focused on storing large amounts of data for enterprise systems and OT concentrated on using data to perform specific functions. Smart Manufacturing often demands combining IT and OT, difficult in rigid organizations that operate the two organizations independently and lack the infrastructure to implement comprehensive solutions. Success requires executive leadership sponsorship, motivated technical personnel and, most importantly, a clear deliverable on the value in implementing Smart Manufacturing. Many organizations have introduced top-level leadership positions such as a Chief Information Officer or Chief Data and Analytics Officer to address this convergence and many of these leaders are embracing Smart Manufacturing practices. The SEMI Smart Manufacturing community includes many of these leaders and therefore has highlighted the importance in the return on investment for Smart Manufacturing solutions. Read more about IT and OT convergence and note that Smart Manufacturing is synonymous with Industry 4.0. The SEMI Smart Manufacturing Initiative covers the entire supply chain. Get Smart in Smart Manufacturing While new technologies and applications are being created to deal with mountains of data, it is the underlying methodologies and practices that are key to a successful Smart Manufacturing deployment. SEMI, the trade association representing the electronics manufacturing and design supply chain, is in a perfect position to evangelize Smart Manufacturing experiences and best practices for the entire manufacturing community. The more than 30 member companies participating in the SEMI Smart Manufacturing Initiative bring more than 500 years of collective experience and knowledge to the topic. Many segments of the supply chain participate in the SEMI Smart Manufacturing Initiative including packaging, assembly, SMT and PCB assembly, test, software, data management, sensor and material suppliers. Learn How to Manufacture Smarter SEMI SMART Manufacturing is hosting two great conferences in the coming months – the Global Smart Manufacturing Conference (GSMC) and the SEMICON West Smart Manufacturing Pavilion. As a leader of the organizing committee and chair for the SEMICON West Smart Manufacturing Pavilion, I encourage people who want to learn how to implement Smart Manufacturing or expand their knowledge of Smart Manufacturing to attend these events. The GSMC will feature keynotes highlighting the value of Smart Manufacturing, offer tutorials on the three pillars, and introduce several case studies for each of the pillars. Thirty-two organizations – ranging from global cloud providers, semiconductor factory operators, leading equipment vendors and software application solution companies – will present. See the full agenda here. The SEMICON West Smart Manufacturing Pavilion will compliment GSMC by showcasing a number of use cases that highlight the value of Smart Manufacturing. Panel discussions will deep dive into the challenges of implementing these best practices and the direction smart manufacturing is taking in the coming years. Our goal for these events is for you to take this knowledge back to your companies, implement and improve on the detailed solutions highlighted at the conferences, and return next year to share your success stories with the community. See you soon, in person or virtually! About the Author Bill Pierson is VP of Semiconductors and Manufacturing at KX, leading the growth of streaming data analytics in this vertical. Bill is also a chair for the SEMICON West Smart Manufacturing Conference and an active team member of the SEMI Americas Chapter. He has extensive experience in the semiconductor industry including previous experiences at Samsung, ASML and KLA. Bill specializes in applications, analytics, and control. He lives in Austin, Texas, and when not at work can be found on the rock-climbing cliffs or at his son’s soccer matches.

AEM Holdings Ltd, a Singapore-based multinational corporation, is listed in Forbes Asia’s 200 Best Under A Billion 2019 and 2020 spotlighting small and midsized companies in the Asia-Pacific region with sales under $1 billion. AEM clinched the Singapore Business Review Technology Excellence Award 2020 for Analytics-Semiconductor and the Singapore Business Awards Enterprise Award 2019/2020. These achievements are testament to AEM’s vision and innovation and the company’s contributions to the increasingly complex testing of chips in a rapidly evolving technological world. I spoke with AEM CEO Chandran Nair, a new Regional Advisory Board (RAB) member of SEMI Southeast Asia, about the company’s intelligent test and handling solutions, its role in digital transformation, the company’s key role in the smart manufacturing movement and the growth prospects for Singapore’s electronics sector. SEMI: AEM’s application-specific, intelligent system test and handling solutions for semiconductor and electronics companies serve the advanced computing, 5G and AI markets. How do you differentiate your solutions from those offered by competitors? Nair: A key differentiation for AEM is that we work closely with our customers to develop application-specific integrated test and handling solutions that meet their needs in a scalable manner from lab to production. We offer our customers customized, full-stack test and handling solutions that give them the agility to accelerate their delivery cycles and enhance product quality. Over the years, AEM has developed and acquired world-class technologies in instrumentation, test, automation, robotics, optical inspection, high-end thermal control, and software. These technology pillars, along with our deep know-how to customize test and handling solutions using the technology pillars as a platform, enable AEM to meet the fast-changing needs of our customers faced with the challenges of testing heterogeneous and complex devices. In addition to investing in technology, AEM has also invested in delivering application-specific solutions to meet customer demand. Our recently announced acquisition of CEI with its manufacturing capabilities in Vietnam and its specialization in low-volume, high-mix manufacturing increases our geographical reach and our ability to quickly turn application-specific test and handling solutions to be deployed. We have a unique and differentiated approach that enables our customers to test high-performance computing devices, automotive devices, and mobility devices with maximum test coverage, cost-effectively, in a manufacturing environment. Our experience in serving the high-performance computing market that traditionally drives advancements in thermal control also puts us at the forefront of delivering comprehensive thermal management, vision, and deep automation and test solutions for the computing, automotive, and mobility markets. AEM also has a strong instrumentation portfolio, including high-density digital instruments and mixed-signal and protocol-aware instrumentation that is well-suited for ATE solutions for SoC, high-power devices, and CMOS image sensors. Over the last few years, we have also established leadership positions in developing and deploying application-specific test solutions for MEMS devices and offering wafer and frame probing stations suitable for R D, wafer sort, and final test. We form strong partnerships with our customers, provide them with end-to-end support in product development, and take them through the entire life cycle process from concept to mass production. Chandran Nair and Goh Meng Klang, vice president of operations, at the AEM manufacturing site in Singapore. (Photo credit: AEM) SEMI: Digital transformation is powering strong growth of advanced computing, 5G and AI. Will AEM be expanding its AEM manufacturing plants in China, Malaysia and Singapore to meet rising demand for these technologies in the coming years? Nair: In regards to manufacturing, AEM currently has manufacturing facilities in Singapore, Malaysia, the U.S., Finland, and China. With our recently announced acquisition of CEI, we will add manufacturing capability in Vietnam and Indonesia. AEM will continue to expand manufacturing appropriately to give our customers cost-effective solutions while maintaining our proven track record of delivering on time and scaling rapidly in times of crises like the pandemic or geopolitical disruptions. As for advanced technologies, the three key factors that will bring the full potential of 5G to fruition are 1) cost-effective, high-powered processing devices at the edge, 2) easy access to high-bandwidth communications, and 3) cost-effective sensor technology. Semiconductors are the primary drivers of these three key success factors. As devices become more complex and our reliance on semiconductor-powered devices in all aspects of our lives deepens exponentially to include mission-critical applications, AEM’s role is to ensure that our customers' electronic and semiconductor devices are shipped thoroughly tested, safe to use, and highly reliable. It is imperative that, as a testing company, we find innovative ways to help our customers test their products with maximum coverage and minimum cost. To do this, we are focusing our R D efforts and investments to continue building on our key technology pillars to ensure that we stay ahead of the curve when it comes to test and handling solutions. We prepare our customers to test increasingly complex devices manufactured on the latest process node. SEMI: During your career you’ve driven projects in test and automation and more recently robotics solutions for ports, logistics warehouses and transport. With robotics and automation a key part of Industry 4.0, what role do AEM solutions play in powering the smart manufacturing movement? Nair: The smart manufacturing movement is powered by semiconductors, software and increasingly by artificial intelligence (AI). Test is at the heart of the process of ensuring that semiconductor and electronics devices reach the consumer well-tested for reliability. With our vision of enabling A Zero Failure World, AEM addresses the necessity for safe, highly reliable devices. The semiconductor companies themselves are adopting smart manufacturing methods. AEM’s tools are Industry 4.0-ready, and we continue to invest in machine learning and data analytics, which are integral to the future of test. Our tools are automated and feature embedded sensors to provide our customers with data about tool usage, the state of a machine’s health, and more. Our tools are connected to our customers’ manufacturing automation platforms. Additionally, we continue to invest in our ability to better slice and dice test data to understand trends and patterns to help our customers analyze data and make decisions faster. SEMI: You also have experience heading autonomous vehicle projects. With the COVID-19 pandemic hastening digital transformation, do you see an acceleration in the development of fully autonomous vehicles and smart manufacturing? Research and development efforts for autonomous vehicles (AV) continue at a fast pace worldwide. With shutdowns and restricted movement rules globally, the pandemic has hastened digital transformation in many ways. The delivery of goods and services is transforming, and AV will surely play a part, especially in secure environments for autonomous transport. The pandemic has accelerated the development of autonomous vehicles and smart manufacturing technology in automation-friendly environments like factories and ports. SEMI: At the recent Global Technology Summit hosted by SEMI, you spoke about testing innovations to meet the demands of highly complex devices. Please elaborate on innovative testing solutions versus traditional testing? Nair: AEM offers a disruptive and differentiated solution, one that is driving a paradigm shift to asynchronous, modular, highly parallel, smart testing solutions. ​ The traditional approach of ATEs to test increasingly complex devices on advanced nodes has reached a point of diminishing returns as it gets exponentially more expensive to increase test coverage to acceptable levels. Additionally, as devices get more complex and companies are rapidly adopting heterogeneous packaging technologies, the realization that System Level Test (SLT) is necessary is forcing a rethink of the entire test process. AEM’s provides asynchronous, modular, highly parallel test cell solutions that enable each test cell to run SLT, final test, or burn-in all in one system and its ability to handle hundreds of test cells independently with each test cell testing multiple devices. Our solutions suddenly make comprehensive testing of every complex device cost-effective. Freeing us from legacy ATE allows AEM to provide these innovative solutions to our customers. AEM engineering and manufacturing teams in Singapore at work on semiconductor test and handling systems for global deployment at world-class semiconductor facilities. (Photo credit: AEM) SEMI: Singapore seems to be in the sweet spot of digital transformation. Singapore’s industrial production grew 8.6% year-over-year in January 2021, an expansion driven mainly by a surge in sectors including electronics, and more growth is seen in the year ahead. Digital technologies such as 5G technology and cloud computing together with continued demand for work-from-home equipment is behind this growth. What are the growth prospects for the region’s electronics sector? Nair: Singapore is well-poised to benefit from the current digital transformation accelerated by the adoption of these technologies during the pandemic. Being a safe, well-governed country with strong IP protection, excellent infrastructure, and the rule of law, Singapore is in a great position to play a central role in cloud-based services, 5G, and the semiconductor industry. Singapore’s semiconductor sector output is at a record high, and the prospects for renewed growth in the region are very good. SEMI: As a new Regional Advisory Board member of SEMI Southeast Asia, how is your industry experience relevant to the scope of this role? What opportunities lie ahead for the region? Nair: I am honored to represent AEM in the SEMI’s Southeast Asia RAB. The SEMI RAB can influence policymakers with ideas and information on the current and future needs of the industry. I also believe that SEMI Southeast Asia can cultivate a strong innovative semiconductor ecosystem that helps regional and global growth. I look forward to working with other very experienced and accomplished board members. Bee Bee Ng is president of SEMI Southeast Asia.

The state of Penang, nestled along the northwest coast of Peninsular Malaysia, needs no introduction in the global electronics manufacturing sector. Despite its diminutive stature with just over 1,000 square kilometers of land area and a 1.8 million-strong population, Penang commanded an estimated 5% of global semiconductor exports in 2019, according to data compiled from the Department of Statistics Malaysia (DOSM) and UN Comtrade. The State’s transformation, from a traditional seaport economy into the Silicon Valley of the East, began in the 1970s, when the establishment of Malaysia’s first free trade zone in the State drew key investments from eight Multinational Corporations (MNCs). These pioneering investors – Intel Corporation, Hewlett Packard (now Keysight Technologies and Agilent Technologies), Robert Bosch, AMD, Litronix (now Osram Opto Semiconductors), Hitachi (now Renesas), Clarion and National Semiconductor[1] – sparked the development of a robust ecosystem of ancillary industries, which formed a foundation for the State’s rise as a prominent, offsite manufacturing hub. Today, Penang houses more than 350 MNCs that are supported by over 3,000 manufacturing-related SMEs. As Penang flourished as a vibrant, regional E E manufacturing hub, the local talent pool steadily accumulated a wealth of business intelligence and technical experience, enabling the robust supply chain to evolve in tandem with technology megatrends. This, in turn, enabled the State to focus on pursuing investments that have propelled the industry up the value chain, away from its beginnings as a low-cost manufacturing hub. Consequently, Penang has seen a proliferation of upstream technology-related investments in high value-added functions in recent years, ranging from research and development (R D), design and knowledge-based solutions, and downstream advanced manufacturing and testing to global business service (GBS) and Centre of Excellence (CoE) activities. Penang’s growing significance in the global E E value chain is demonstrated by its steady and resilient export performance in recent years. From 2014 to 2019, the State’s E E exports grew at a compounded annual rate (CAGR) of 12% to reach RM210 billion (US$51 billion). It has emerged as a hub for professional, scientific and controlling instruments (including medical technology), with exports of these products growing at a 5-year CAGR of 15% to reach RM23 billion (US$6 billion) in 2019. E E products, alongside professional, scientific and controlling instruments, collectively contributed between 77% and 82% of Penang’s total annual exports since 2014, and accounted for 50% of Malaysia’s exports in these two segments during the period. More impressively, despite the disruptions from the COVID-19 pandemic, Penang’s total exports continued to rise in 2020, growing 7% year-on-year to RM310 billion (US$75 billion), and a further 14% year-on-year in January and February 2021, driven by strong global demand for semiconductors. Shaping up as the destination of choice for advanced manufacturing investments As part of efforts to move Penang’s industry up the value chain, the State government has placed emphasis on attracting companies with strong commitments in implementing Industry 4.0 and sustainable investing. These efforts have yielded positive results, with the state having gained traction as a hub for advanced manufacturing investments. This is evidenced by the rising trend in investments per new job creation, which saw a six-fold jump from 2012 to 2020, as well as the number of global heavyweights announcing new investments as well as expansions of existing facilities in the State in 2019 and 2020. Penang attracted RM31 billion (US$7.5 billion) in approved direct manufacturing investment inflows in 2019 and 2020, 88% of which involved investments into the E E, equipment and medical technology industries. Prominent new investments included those from Lam Research, Bosch Group, Ultra Clean Holdings, Dexcom as well as Smith+Nephew. Together with planned expansions by a number of existing MNCs in Penang, these new investments, which are on track to commence operations between 2021 and 2023, are poised to bring Penang’s industry to greater heights and further integrate the State into the global value chain. Recent Notable Direct Manufacturing Investments in Penang Source: InvestPenang and respective companies Penang’s conducive business environment nurtures successful homegrown technology companies Penang’s conducive business environment has not only proven successful in attracting foreign direct investments (FDIs), but also successfully nurtured local E E success stories of locally employed engineers turned technopreneurs, who have founded and built companies that have successfully grown to become internationally renowned in their own right. These homegrown E E companies play crucial roles in the ecosystem, particularly in the areas of automated test equipment (ATE), automation, outsourced semiconductor assembly and testing (OSAT) services, electronics manufacturing services (EMS), precision engineering and tooling. The past five years have also seen the emergence of young, fast-growing Penang-based companies such as Experior, Oppstar Technology and Skyechip, which provide IC design and IC test design services to MNC clients globally. Public-private partnerships cultivate Penang’s talent development roadmap The state is cognisant that the development of a robust and skilled talent pool is imperative to support the growth of strategic industries in Penang. Strong public-private partnerships with concerted efforts in supporting talent development are key to Penang’s continued success. Toward this end, the State government has backed Penang Skills Development Centre’s (PSDC) industry-led training and education efforts, which have helped train over 200,000 of workers to support the industry’s needs since 1989. The State has also coordinated collaboration for industries to provide input to local institutions of higher learning on the relevance of the institutions’ courses, and rallied the industry to support State-run scholarships (Penang Future Foundation) and STEM initiatives. Holistic initiatives to make Penang a world-class investment destination for global frontier companies The dynamics of the global value chain, especially for the technology sector, have evolved rapidly since 2018, particularly amid the complex confluence of trade protectionism, COVID-19 pandemic-driven issues and disruptive technologies. The State government believes that strong, geographically localised industry clusters could help companies mitigate the risks of supply chain disruptions, in addition to improving companies’ time-to-market at a lower cost. To further increase Penang’s attractiveness for high quality investments, the State is focusing on three key strategies: Extending its competitive edge in advanced manufacturing, further strengthening Penang’s industry clusters, which include expediting SMEs’ Industry 4.0 transformation journey, and nurturing more homegrown companies to penetrate the global supply chain Embarking on a continuous drive to develop and recruit talent to the State, as well as cultivate the younger generation’s interest in STEM Enhancing Penang’s liveability with a strong focus on making Penang a smart and green city The State government is committed to continue developing Penang in a holistic manner, with the aim of creating a vibrant business and investment destination with a robust and sustainable economy and high standard of living, creating a conducive environment to “work, live, learn, play and invest.” About InvestPenang InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centres. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Centre (providing assistance to SMEs), Penang CAT Centre (for talent attraction and retention) and i4.0 seed fund (a catalyst for the start-up ecosystem). For more information, contact [email protected]. InvestPenang also works closely with various industry associations, including SEMI, to promote Penang’s supply chain and E E ecosystem. InvestPenang is delighted to have collaborated with SEMI on numerous occasions since 2015 and endeavours to sustain the partnership in the years to come, including for the SEMICON SEA 2022 exposition to be held in Penang. [1] No longer present in Penang following a corporate M A exercise.

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.