Robotics and Semiconductor Industries Face Challenges and Opportunities

The North American robotics market saw a significant decline in the second quarter of 2023, with robot orders falling by 37% between April and July, a 20% drop in value, compared to the same period in 2022, according to the Association for Advancing Automation (A3). 

The slowdown is attributed to a sluggish economy and high interest rates, despite the ongoing labor challenges that robots have been able to address effectively since the COVID-19 pandemic. Interestingly, the semiconductor and electronics industries have shown the strongest overall demand for robots during this period. However, the non-automotive sector purchased 52% of the robots sold in Q2 2023, with total sales in that sector down by 20%. The remaining 48% of robots purchased went to the automotive industry, with total orders down by 49%.

In related news, the U.S. Department of Defense announced fresh funding for a program aimed at developing the microelectronics workforce required by the armed forces. The program, known as Scalable Asymmetric Lifecycle Engagement (SCALE), is led by Purdue University and includes 18 other institutions. The program, which received an additional $19 million in funding, focuses on radiation-hardened microelectronics and trusted artificial intelligence tools, in addition to training and continuing education. 

Flexpipe, a modular system equipment company, has also introduced Lean Maker Academy, a free online certification program designed to teach employees how to assemble modular system equipment at their own pace. The program consists of interactive video lessons and quizzes, with the first course covering tubular systems. 

Lastly, a study from the Freedonia Group predicts that demand for robots to perform tasks such as mowing lawns, shoveling driveways, and cleaning pools will grow by 24% per year through 2027. The rise in demand is attributed to people returning to the office and lacking time for yard work, labor shortages affecting the supply of human landscapers, and a slew of innovations waiting to be improved upon.