Transcript 0:00 That take-make-waste model was so successful for many decades. We saw many highly productive manufacturing factories prosper. 0:09 But today, this linear economy of take-make-waste, where we see material flow directly from resource extraction through manufacturing process to landfills, has reached its capacity. 0:21 Now, I believe we are at this precipice of an evolution. We need something new. We need to think differently. We need what I've been saying is a circular economy. We need to be thinking how we need to be more innovative. 0:38 [upbeat music] Welcome to The Peggy Smedley Show, the podcasting voice of IoT and digital transformation, with your host, Peggy Smedley. 0:54 Hello, listeners, and welcome to today's edition of The Peggy Smedley Show. As always, I'm your host, Peggy Smedley. This month on the show, I am talking all about security and manufacturing. 1:06 Today, I can't help but discuss a new announcement that is going to revolutionize manufacturing, and all of you who have been listening to my show know that I love to talk about manufacturing. 1:17 Today, I'm going to detail the announcement and then I will give you my thoughts on what's to happen next, specifically in the manufacturing sector. 1:27 So for the next several minutes, I'll be taking a deep dive into what is happening and how it's going to affect all of us who care about the manufacturing space in general. But first, let me tell you all about my guests. 1:39 We're going to be welcoming back Lisa Robinson, Senior Program Manager of Traffic Safety Programs of the National Safety Council. 1:49 Then I'm going to wrap up the show with Pat Jones, Executive Director and CEO of the International Bridge, Tunnel and Turnpike Association. So we've got a good show as always. All right, so let's get right to it. 2:02 During Intel's Unleashed Engineering the Future webcast, Pat Gelsinger shared his view for IDM 2.0, saying the company's on course for a new era of innovation and technology leadership. 2:19 Now, IDM 2.0 is an evolution of Intel's integrated device manufacturing model, as, as he calls it. Now, here's what I love. 2:29 As I see it, the head honcho here tossed down or tossed out the gauntlet to all of his competitors, and you can't help but admire the tenacity and the inspiration here of this, because his vision represents the combination of three components that will enable the company to drive sustained technology and product leadership. 2:53 For one, Intel's global internal factory network for at-scale manufacturing is a key competitive advantage, is like he says. So this can enable product optimization, improved economics, and supply resilience. 3:09 The company's seven-nanometer development is progressing as well, driven by increased use of their EUV, otherwise known as extreme ultraviolet lithography, in a real architected, uh, I guess you could say, simplified process flow. 3:27 So Intel also expects to tap in the compute tile for its first seven-nanometer client CPU codenamed Meteor Lake in the second quarter of this year. 3:40 So in addition to process innovation, Intel's leadership, and all of this is packaging technology, is an important differentiator. 3:49 So this enables the combination of multiple IPS or tiles to deliver uniquely tailored products that meet diverse customer requirements. 4:00 So in the webcast, Gelsinger highlighted the company's expectation to continue its manufacturing the majority of the products internally. 4:11 Now, you gotta know and you gotta love this idea because it was a conversation many of you know that I started in my first book, Mending Manufacturing, back in two thousand and four. 4:23 And here I talked about the crisis in American manufacturing and why it's so important to be having this conversation now. 4:31 And it is actually a conversation that I continue to talk about in my current book, Sustainable in a Circular World, where we renew that dialogue about why it's so important to move from a linear approach to a more circular one. 4:46 And that means Intel will be quickly moving or proving to everyone, if you think about it, to be more than aggressive, but a leader in every category the company intends to compete in. 4:58 But, and this is a big kind of if, if you think about it, if it stays true to the amazing vision and the course it's kind of setting itself on. 5:08 So let's not forget we need to have all the manufacturing to recover in a big way and to return to a strong supply chain, we as a whole country. 5:20 And Pat's vision kind of helps us see that road ahead is strong and optimistic. So for the company, the second component here is expanded use of third-party foundry capacity. 5:33 So the company expects to build on its existing relationship with third-party foundries, which today manufacture a range of Intel technology. 5:43 So this includes everything from communications and connectivity to graphics and chipsets.So Gelsinger expects third-party foundries to grow, and also this will include manufacturing for a range of modular tiles on advanced process technology. 6:02 So this also includes products at the core of Intel's computing offerings for both client and data center segments beginning in 2023. 6:13 So the outcome here will be increased flexibility and scale needed to optimize Intel's roadmaps for, let's say, cost. They talk about performance, schedule, and even supply. 6:26 Now finally, if you think about it, Intel is building a foundry business called Intel Foundry Services. 6:34 Now, Intel announced plans to become a major provider of US and Europe-based foundry capacity to serve the global demand for semiconductor manufacturing. 6:47 Now, this is really interesting because you know what's been happening in the semiconductor market overall. 6:53 So this will offer a combination of leading-edge process technology and packaging, a committed capacity in the US and Europe, and an IP portfolio for customers including x86 cores, as well as Arm and RISC-V ecosystems IPSs. 7:12 So the company also announced a significant expansion of its manufacturing capacity, beginning with plans for two new fabs in Arizona. 7:22 Now, overall, I love this because these fabs will support the increasing requirements of Intel's current products and customers as well, and it provides a committed capacity for foundry customers. 7:39 So also together, Intel and IBM will conduct research focused on creating next gen logic and packaging technologies. 7:49 So these foundational technologies will help kind of unleash the potential of data and advanced computation to create this economic value. 7:59 So all in all, if you think about it, Intel will be able to control its supply chain and what most importantly, its innovation. 8:09 And as I look at perhaps even more importantly, getting the talent, attracting and inspiring the best engineers and innovators, as Pat says, and I love this, "On the planet." Now, that's just a fun statement, right? 8:25 I mean, you gotta love that. That's, that just says he's got it. He's fired up. Okay, so here's my opinion for today. I've said it so many times before. We need to build a nimble product development pipeline. 8:40 When I first started covering this space, you know, a couple decades ago, manufacturing executives and politicians would wince when I would say, "We need to retool factory lines." 8:54 They were looking for the cheapest and the fastest way to produce goods. I said that was gonna be a problem. I stated it when I wrote my first book. Often, that meant looking overseas. 9:05 I knew that was a problem only because the way we were looking overseas. So let's look at a statistic. 9:11 From 1992 to 2001, about 90% of America's most important manufacturing industries lost significant market share to goods produced overseas. That take, make, waste model was so successful for many decades. 9:29 We saw many highly productive manufacturing factories prosper, but today, this linear economy of take, make, waste, where we see material flow directly from resource extraction through manufacturing process to landfills, has reached its capacity. 9:47 Now, I believe we are at this precipice of an evolution. We need something new. We need to think differently. We need what I've been saying is a circular economy. We need to be thinking how we need to be more innovative. 10:02 So I'm so thrilled to hear what companies like Intel and others are doing to rethink strategies when it comes to building and assembling products. 10:14 And if we want to mitigate climate change, we need to address this in industries like manufacturing and others. It's not just one industry, it's all of them. 10:25 You know, and we've said this so many times now, the time is now, and we can think locally and act globally. So here's my tip. Companies need to rethink their strategies in manufacturing and other industries. 10:38 We've agreed to that. Many are already making those moves, and they're trying to figure out how to find the right partners. It's all about collaboration. Can't do it alone. 10:47 And I give a bunch of examples of other companies in my book, Sustainable in a Circular World. I know you keep hearing this every week, but it's really a great read because we've got five generations working together. 10:58 We're trying to figure out how do we restore natural ecosystems? How do we make a greener environment? Others that don't take these steps are going to be left behind. This is a journey. It's not a one-step thing. 11:12 We need a regenerative environment. We need to understand it. We need to reconsider what we make and consume. We need to become more circular if we're going to be a sustainable and if we're gonna be profitable. 11:29 You know, your banks are going to be looking at if they're gonna be the making the investments in you. I mean, you need to be showing this. This isn't just something that you say, "Uh, I'm really not interested." 11:40 Those that wanna make investments in you are going to be looking at this ESG. They're going to be looking at it. They're going to wanna see if you get it. These days, it all goes hand in hand. 11:53 So the real question is, so what is your company going to do to take this step that it needs to be taking in the future? But right now, you gotta be looking at it. If you're not right there, you gotta be looking up. 12:06 So let's all do this together because if we're doing it together, we're helping each other. We're looking. We're, we're stumbling together. We're picking ourselves up together. 12:15 We're dusting ourselves off together, and we're making those strides together. And what the best part of this is, we're all in it together. We're learning together, and we're all gonna make s- mistakes together about it. 12:27 But that's why we're all accomplishing the same goals, and that's how the environment is going to get cleaned up again. 12:35 That's how we're all gonna understand what we have to do, and that's how you're gonna find the best partners who are going to help you understand this. And we're here. 12:43 That's why we're here talking about it, because we can always help each other. All right. As always, if you've got thoughts about what we're talking about, I'd love for you to tweet at me at connectedwmag. 12:54 Send a comment up on LinkedIn. You know, the best way we can learn from each other is sharing ideas, sharing comments, whether you agree or don't agree. I mean, that's what we have to do. 13:04 You know, we've, we've gotta comment about these things. Check out our website at connectedworld.com or our show website at thepeggySmedleyShow.com. 13:12 You know, if you haven't heard this segment or many others, there's a bunch of them up there right now. All right, we're gonna take a quick commercial break. 13:18 We're gonna bring our great guests on because we're gonna talk about so many things that are happening right now in sustainable infrastructures, what we have to think about and all the other things that are going on. 13:27 So as always, this is The Peggy Smedley Show, the podcasting voice of IoT and digital transformation. And remember, with great technology comes great responsibility. We'll be right back after this quick commercial break. 13:38 [upbeat music]
