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IT Infrastructure

Is The New Siemens-Intel Deal A Game-changer For Modern Manufacturers?

By TD NewsDesk

TD NewsDesk

Updated on Tue, Dec 5, 2023

Overall Rating
Modern technology is great, isn’t it? We sure think so!

It’s helping individuals and businesses perform traditional tasks harder, better, faster and stronger. Especially considering the advancements made in smart devices and IoT (Internet of Things).

Add to that the miracle of semiconductor microchips, that enable just about any electronic device to function easier and quicker. Yet, as we witness massive adoption of these powerful microchips, one concern has creeped up: the rising power consumption.

Manufacturing businesses are looking for energy-efficient chips or semiconductors to reduce operating costs. This means that they’re on the lookout to reduce energy usage in allied processes, including that of researching, manufacturing and operating factories that produce such chips.

With this in mind, Siemens AG, a leading technology company has signed a Memorandum of Understanding (MoU) with Intel Corporation, one of the world’s largest semiconductor manufacturers in the world.

What’s the deal all about? Let’s explore!

What Is The Siemens-Intel Partnership About?

  • The two companies signed an MoU (Memorandum of Understanding) to collaborate on driving the digitalization and sustainability of microelectronics manufacturing.

  • It’s believed the partnership is signed for a period of 3 years.

  • Essentially, it will help focus on advancing future manufacturing efforts, evolving factory operations and cybersecurity, as well as supporting a resilient global industry ecosystem.

  • One of the main focuses of the agreement is to identify and optimize energy management initiatives and enhance carbon footprints.

  • One such avenue would include exploring the use of digital twins for complex and highly capital-intensive manufacturing facilities, to find and set standardized solutions seeking even the slightest of energy efficiencies.

  • Furthermore, by using advanced modeling of natural resources and environmental footprints across the value chain, the collaboration will look to reduce energy usage.

  • Another path Intel and Siemens will take to gain data-driven insights on product-related emission is by using product and supply chain related modeling solutions.

  • As Intel looks at a multi-billion-dollar investment to improve its chip manufacturing capabilities and turns towards cutting-edge chip tech known as extreme ultraviolet (EUV) lithography, an energy-consuming technology that’s crucial to advanced chipmaking, the partnership with Siemens will provide for better efficiency in energy consumption, manufacturing and other key processes.

TechDogs-"An Image Of Cedrik Neike, CEO Of Digital Industries And Board Member For Siemens AG With Keyvan Esfarjani, Chief Global Operations Officer For Intel Corporation"  

What Did Stakeholders Say About The MoU?

  • Cedrik Neike, CEO of Digital Industries and member of the Managing Board of Siemens AG, said, “Semiconductors are the lifeblood of our modern economies. Few things run without chips. Therefore, we’re proud to collaborate with Intel to quickly advance semiconductor production. Siemens will bring its entire cutting-edge portfolio of IoT-enabled hardware and software and electrical equipment to this collaboration.”
  • [Contd.] “Our joint efforts will contribute to achieving global sustainability goals.”
  • Keyvan Esfarjani, Intel Executive Vice President and Chief Global Operations Officer, said, “The world needs a more globally balanced, sustainable and resilient semiconductor supply chain to meet the increasing demand for chips.”
  • [Contd.] “We are excited to build upon Intel’s advanced manufacturing capabilities by expanding our collaboration with Siemens to explore new areas where we can utilize Siemens’ portfolio of automation solutions to enhance efficiency and sustainability in semiconductor infrastructure, facilities, and factory operations. This MOU will benefit regional and global industry value chains.”

Siemens has signed similar partnerships with other manufacturers to enhance their processes and operations, including one with Mercedes-Benz to help its transition to manufacturing electric vehicles from combustion engines.

Do you think competing manufacturers need to look at similar tie-ups to boost their manufacturing and energy efficiency initiatives? Will energy efficiency and sustainability play a major role in manufacturing moving ahead?

Let us know in the comments below!

First published on Tue, Dec 5, 2023

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