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Capturing this week's zeitgeist
Exciting news! This past week I launched “Machine Chatter,” an AI-generated podcast that brings you inside the world of modern manufacturing and supply chains. Each episode will feature the most engaging media from the weekly digest and augmenting it with the full backstory of that technology, providing you another way to consume Exponential Industry. It is also available on Spotify and soon on YouTube and Apple Podcasts.
Assembly Line
This week's most influential Industry 4.0 media.
How a $12.98 T-Shirt Is Made in America—at a Profit
But it wasn’t tariffs that made the $12.98 shirt economically feasible, says Bayard Winthrop, the chief executive and founder of American Giant, the U.S. apparel company producing them. It was Walmart’s heft—and guaranteed orders. Winthrop said that without Walmart acting as a backstop by committing to buy a predetermined number of shirts over time, American Giant’s suppliers wouldn’t have had the confidence to make the investments in automation and other upgrades that drove down production costs. A Walmart spokesman confirmed that the retailer essentially signed noncancelable purchase orders.
Unlike some other industries that have become highly mechanized, there are limits to automation in apparel. For the most part, fabric is still sewn by humans. To fulfill Walmart’s order for hundreds of thousands of shirts, American Giant and its partners hired 75 people to staff the Los Angeles sewing facility. The company and its suppliers also spent $1 million on machinery designed to make production faster and more efficient. It also tweaked the design.
Race to 1,000 Parts: 3D Printing vs. Injection Molding
Improve Ethylene Production Margins with Digitalization
On the environmental front, many ethylene producers have committed to curb emissions by 2030 and 2050 milestones. Such avenues for decarbonization include large-scale electrically heated steam cracker furnaces, such as the one currently under construction at BASF’s Ludwigshafen Verbund site in Germany. Circularity via the mechanical and chemical recycling of waste plastics is another priority for the industry. Renewable plastics (derived from bio-based feedstock or recycled pyrolysis gas) have a lower carbon footprint than ethylene produced in the traditional steam-cracking process. Even though in the short term, the demand for virgin feedstock may not change, in the long-term, product circularity will lower the need for traditional fossil-based feedstock.
Digitalization has become integral in ethylene producers’ business strategy. Digitalization improves plant performance, efficiency, reliability, safety and product margins, while also playing a key role in developing new technologies for sustainability initiatives. Designing new processes for chemical recycling of plastics, incorporating bio-based and recycled feedstocks, and integrating renewable energy sources are just a few examples. Digital technologies are also necessary for operator training to improve plant safety and expedite planned shutdowns and startups. Leveraging digital solutions, new sustainability project trade-offs can be evaluated, and risks minimized. As the ethylene production landscape is evolving to meet the growing demand, digitalization helps producers balance growth and sustainability.
Researchers Demonstrate Self-Assembling Electronics
Researchers have demonstrated a new technique for self-assembling electronic devices. The proof-of-concept work was used to create diodes and transistors, and paves the way for self-assembling more complex electronic devices without relying on existing computer chip manufacturing techniques.
“Existing chip manufacturing techniques involve many steps and rely on extremely complex technologies, making the process costly and time consuming,” says Martin Thuo, corresponding author of a paper on the work and a professor of materials science and engineering at North Carolina State University. “Our self-assembling approach is significantly faster and less expensive. We’ve also demonstrated that we can use the process to tune the bandgap for semiconductor materials and to make the materials responsive to light – meaning this technique can be used to create optoelectronic devices.
Thuo calls the new, self-assembling technique a directed metal-ligand (D-Met) reaction. You start with liquid metal particles. For their proof-of-concept work, the researchers used Field’s metal, which is an alloy of indium, bismuth and tin. The liquid metal particles are placed next to a mold, which can be made to any size or pattern. A solution is then poured onto the liquid metal. The solution contains molecules called ligands that are made up of carbon and oxygen. These ligands harvest ions from the surface of the liquid metal and hold those ions in a specific geometric pattern. The solution flows across the liquid metal particles and is drawn into the mold. As the solution flows into the mold, the ion-bearing ligands begin assembling themselves into more complex, three-dimensional structures. Meanwhile, the liquid part of the solution begins to evaporate, which serves to pack the complex structures closer and closer together into an array.
“Without the mold, these structures can form somewhat chaotic patterns,” Thuo says. “But because the solution is constrained by the mold, the structures form in predictable, symmetrical arrays.”
Once a structure has reached the desired size, the mold is removed, and the array is heated. This heat breaks up the ligands, freeing the carbon and oxygen atoms. The metal ions interact with the oxygen to form semiconductor metal oxides, while the carbon atoms form graphene sheets. These ingredients assemble themselves into a well-ordered structure consisting of semiconductor metal oxide molecules wrapped in graphene sheets. The researchers used this technique to create nanoscale and microscale transistors and diodes.
“The graphene sheets can be used to tune the bandgap of the semiconductors, making the semiconductor more or less responsive, depending on the quality of the graphene,” says Julia Chang, first author of the paper and a postdoctoral researcher at NC State. In addition, because the researchers used bismuth in the proof-of-concept work, they were able to make structures that are photo-responsive. This allows the researchers to manipulate the properties of the semiconductors using light.
New Product Introduction
Highlighting new and innovative facilities, processes, products, and services
Novel welding tech demonstration draws industry representatives
On Oct. 25, Brampton, Ontario-based SORSYS Technologies hosted a demonstration of FuseRing’s induction-assisted friction welding technology on tube and rod materials. Attendees included representatives of the Canadian government, local associations, colleges, the nuclear industry, and the aerospace industry. Adrian Gerlich, professor in the department of mechanical and mechatronics engineering at the University of Waterloo and director of the university’s Centre for Advanced Materials Joining, presented results from the studies his team has performed on parts that were joined using the technology.
This demonstration of the FuseRing technology showed attendees a model that could heat the material in two seconds, but also could have its temperature settings changed, as well as the pressure and angle of the material. The FuseRing concept uses solid-state fusion to join sections of pipe. The inventor of the welding process, Canadian David Lingnau, described it as a “spinduction” process—combining induction heating and kinetic energy to join two workpieces without the filler metals or solid-to-liquid phase transformation. Essentially, the process involves using an induction heating coil to preheat the ends of two tubes or pipes. The operator then retracts the coil and compresses the ends, and then rotates one of the two pipes. The technique uses no filler and produces no fumes or particulates.
Paul Cheng, principal of FuseRing, noted that a wide variety of materials are suitable for this form of welding, and his focus has been on promoting it to industry sectors that struggle with time constraints and safety concerns, such as pipeline, refinery, nuclear, shipbuilding, and submarine.
Business Transactions
This week's top funding events, acquisitions, and partnerships across industrial value chains.
Mining startup KoBold Metals valued at $2.96bn after closing $537m Series C
To ring in the new year, KoBold announced the close of its $537m Series C in an interview with the Financial Times. Berkeley-based KoBold Metals said its series C funding round valued the company at $2.96bn, and was co-led by existing investor T Rowe Price, which has been joined by Durable Capital Partners.
The company — which uses OpenAI’s generative AI technology as well as more traditional AI — planned to “add at least three jurisdictions” including Finland and Botswana, House said, adding that he was excited about the prospects for lithium mining in Canada.
KoBold plans to hire “aggressively” and add data scientists who have a more traditional technology background to its teams, as well geoscientists to survey possible deposits and collect data, said House. The company was likely to go public within three to five years, he added.
Swave Photonics Raises €27M ($28.27M) Series A Funding for Introduction of Dynamic 3D Holographic Display Products
Swave Photonics, the true holographic display company, announced the close of its €27M ($28.27M) Series A funding round. This significant investment in Swave will catalyze the advancement of its Holographic eXtended Reality (HXR) platform, enabling a reality-first user experience for AI-powered augmented reality (AR) smartglasses and heads-up displays.
The funding round was co-led by investors imec.xpand and SFPIM Relaunch, with participation from new investors EIC Fund, IAG Capital Partners, and Murata Electronics North America, Inc., as well as existing investors Qbic Fund, PMV, imec, and Luminate. Swave previously raised a €10M ($10.47M) Seed round in 2023, which propelled the launch of Swave’s HXR technology, as well as the expansion of Swave’s team, which proudly leverages the top minds in photonics and semiconductors.
Swave’s HXR technology uses the world’s smallest pixel to shape light and sculpt high-quality 3D holographic images that create a reality-first user experience, where digital information interacts and adapts to the user’s surroundings. The images allow for the human vision system to process them naturally leveraging patented DynamicDepth technology.
Zebra Technologies to Acquire Photoneo, Expanding Its Portfolio of 3D Machine Vision Solutions
Zebra Technologies (NASDAQ: ZBRA), a leading digital solution provider enabling businesses to intelligently connect data, assets, and people, announced it intends to acquire Photoneo, a leading developer and manufacturer of 3D machine vision solutions. The 3D segment of the Machine Vision market is the fastest growing, and this acquisition will further accelerate Zebra’s presence in the category.
Photoneo’s intelligent sensors are particularly effective within the vision-guided robotic (VGR) segment. They are certified to interface with many of the largest robotic manufacturers for a variety of use cases including robot-arm applications for bin picking. Photoneo differentiates itself through parallel structured light technology in complex 3D applications which provides a faster, more accurate, higher resolution and more robust solution comprised of both hardware and software.
Zebra has made strategic investments in the Machine Vision market, most recently in the acquisition of Matrox Imaging in June 2022 to augment its portfolio of fixed industrial scanners and machine vision sensors. By acquiring Matrox Imaging, Zebra accelerated its position as a leading provider of machine vision hardware and a broad range of software development libraries and apps now unified within the Zebra Aurora software suite.
One Equity Partners Completes Investment in Comau, an Italian Industrial Automation Leader
One Equity Partners, a middle market private equity firm, announced that it has completed a majority investment in Comau S.p.A., making Stellantis an active minority shareholder. Comau is a global technology company specializing in industrial automation and advanced robotics.
Samsung Electronics To Become Largest Shareholder in Rainbow Robotics Accelerating Future Robot Development
Samsung Electronics today announced that it will become the largest shareholder in Rainbow Robotics to accelerate future robot development such as humanoid robots. Samsung first acquired a 14.7% stake in the Korean firm in 2023 with investment of KRW 86.8 billion, and exercises a call option to increase its stake to 35%. Rainbow Robotics will also be incorporated as a subsidiary under Samsung Electronics’ consolidated financial statements.
Through collaboration with Rainbow Robotics, Samsung will further strengthen its foundation in the development of advanced robot technology. Rainbow Robotics was founded in 2011 by researchers from the Korea Advanced Institute of Science & Technology’s (KAIST) Humanoid Robot Research Center who developed the first two-legged walking robot “Hubo” in Korea.
By combining Samsung Electronics’ AI and software technology with Rainbow Robotics’ robotics technology, the collaboration plans to accelerate the development of intelligent advanced humanoids.
Mastercam Acquires FASTech
Sandvik announces the acquisition of the business of the American company FASTech, which will be part of Mastercam, the world’s leading CAD/CAM software provider. The acquisition has been completed as an asset acquisition. FASTech, Inc., a valued Mastercam channel partner serving customers in Ohio and eastern Kentucky.
This acquisition marks an important milestone in Mastercam’s mission to shape the future of manufacturing. For over 30 years, FASTech has been a trusted partner in delivering best-in-class solutions and supporting manufacturers. By integrating FASTech’s expertise and regional insights, Mastercam strengthens its ability to deliver innovative solutions and exceptional service to customers in the region.
Velo3D Announces Debt for Equity Exchange Transaction Significantly Delevers Balance Sheet Arrayed Notes Acquisition Corp to Become Majority Equity Holder of Velo3D
Velo3D, Inc., the leader in scalable metal 3D printing technology for production manufacturing, announced a debt for equity exchange where approximately $22.4 million or 81.7% in principal amount of its outstanding senior secured notes, plus approximately $369 thousand of accrued interest on such notes, held by Arrayed Notes Acquisition Corp. (the “Holder”) will be cancelled in exchange for an issuance of 185,151,333 newly issued shares of the Company’s common stock to the Holder. With the completion of this transaction, the Holder will hold 95% of Velo3D’s issued and outstanding common stock. Shares of Velo3D’s issued and outstanding common stock not held by the Holder will remain publicly traded on OTCQX.
“Velo3D’s industry leading technology and capabilities allow Arrayed Additive to greatly expand our services and product offering to our customers. Velo3D’s focus on defense, space / aerospace and technology end-markets is complementary to Arrayed Additive’s customer base and our leading technology in light weight precision manufacturing using magnesium and aluminum alloy further expands Velo3D’s capabilities. I am thrilled to lead Velo3D into a new chapter of growth,” said Arun Jeldi, Arrayed Additive CEO.