Smart Factory and the Internet of Things Opportunity

The opportunity for U.S. manufacturers to take advantage of the Internet of Things is incredible. According to McKinsey1, by 2025, 80 to 100% of manufacturing could be using IoT applications, leading to a potential economic impact of up to $2.3T per year. And as Moore’s Law continues to drive advanced technology into smaller processors, manufacturers are poised to take advantage of new markets and form factors, adding intelligence to edge devices to enable real-time manufacturing optimization. Intel is powering the Industrial Internet of Things in the U.S. by enabling efficient, intelligent factories, securing devices, the network, and data, and consolidating systems using virtualization technologies to lower total cost of ownership and increase factory floor efficiency. These end-to-end solutions enable value to be extracted from the data generated through manufacturing processes, tools and products. As the 5th largest capital investor in the U.S., Intel is committed to seeing U.S. manufacturing thrive in the IoT era.

Last Thursday I was honored to participate in a panel discussion “Manufacturing More Competitively in America” at the 2nd Annual Manufacturers Alliance for Productivity and Innovation (MAPI) Executive Summit, joining Helmuth Ludwig, president and CEO, Siemens Industry Sector USA, and Will Powers, CFO, Rolls-Royce North America. We discussed the trends that are driving a steady resurgence of manufacturing in the U.S., along with the innovation that is occurring across the manufacturing sector—everything from educational initiatives to implementing “Smart Manufacturing” technologies to improve factory operations.

Intel invests heavily in U.S. manufacturing through job creation, R&D, distribution, and more, and we are strongly committed to supporting STEM education to inspire the next generation of tech development. Using the very same technology we are building in our own fabs, Intel has been investing for decades in optimizing our factory network. We do this by collecting data from equipment on the factory floor so that we can analyze it and act upon it. This allows us to recoup the investments we need to make in order to build new factories and achieve ROI.

Optimizing Industrial Systems in the Smart Factory

While our sustained investment is driving economic growth across the country, keeping U.S. manufacturing competitive on a global scale will require industrial systems to maximize efficiency:

MAPI Slide
Intel has products and solutions in place that manufacturers are using today to optimize industrial systems for improved efficiency, including:

  • Intel® Trusted Execution Technology (Intel® TXT) and security, integrated directly into processors
  • Root-of-trust partnering of processors with Intel® security software to safeguard data from human error and malicious attacks
  • Intel® Active Management Technology (Intel® AMT) for remote management and diagnostics to
  • Intel® Virtualization Technology (Intel® VT) and virtualization software to enable multiple workloads running on a single platform, saving valuable factory floor space and reducing TCO

IoT at Work in Intel Manufacturing

The Internet of Things is driving huge variety, velocity, and volumes of data. With increased intelligence from device to datacenter, we can now access that data and analyze it to create greater efficiencies, new services, and revenue streams. Intel assembly and test manufacturing operations are already benefitting from IoT technologies that provide the intelligence to:

  • Store and analyze actionable data for use on the factory floor, from operations to supply chain management
  • Reduce non-genuine yield loss caused by hardware failure
  • Save spare costs through preventative maintenance programs
  • Lower maintenance costs by enabling predictive maintenance and reducing the need for preventative maintenance
  • Implement an active early warning system to avoid “sudden” downtime

Smart Factories: The Future of U.S. Manufacturing

With the ongoing realization of Moore’s Law, ubiquitous connectivity, and big data analytics, the manufacturing sector can take advantage of the data being generated on the factory floor to drive down costs, increase throughput, and spur future innovation. We’ve experienced many IoT advantages first-hand in our own fabs and are partnering with the ecosystem to develop solutions that meet a wide range of industrial applications. The efficiency, productivity, and economic gains to be made are substantial, and we believe that innovation, collaboration, and the targeted application of intelligent technology across end-to-end industrial systems stand to lead U.S. manufacturing into its most competitive era yet.

Learn more about Intel® Industrial Solutions

Learn more about Intel® IoT Solutions

1 “Disruptive technologies: Advances that will transform life, business, and the global economy,”
pg. 56, 2013 http://www.mckinsey.com/insights/business_technology/disruptive_technologies

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