Nikon Advanced Manufacturing (AM) pioneers digital manufacturing solutions for the aerospace and defense, automotive, aviation, energy sectors and beyond.
Additive manufacturing has faced challenges with adoption, especially for metal parts. Why did Nikon choose to focus on this area, and what advantages does it bring?
Traditional methods like casting and forging have been used for centuries, but additive manufacturing offers unique benefits. It allows greater design freedom, translating a digital CAD design directly into a 3D part, created layer by layer using laser powder bed fusion (LPBF). This method is particularly effective for producing complex parts that would be challenging or impossible with conventional methods, and it enables quicker turnaround times. However, adoption has been slow, with only about 2.5% of metal parts currently made using additive methods. Despite decades of research and development, it hasn’t reached widespread industrial use. Nikon recognized this as an opportunity to leverage our experience in scaling semiconductor manufacturing. Our acquisitions, like that of SLM—a leader in laser powder bed fusion—helped us gain critical capabilities and market presence in this evolving field.
Metal additive manufacturing is used across various sectors. Which industries have been most receptive to this technology, and what challenges do you encounter in adoption?
Metal additive manufacturing has gained traction in sectors like automotive, defense, aerospace, energy, industrial components, medical, and even consumer goods. Each of these industries values the design freedom, speed, and performance enhancements that 3D printing can offer, with defense and aerospace particularly benefiting from the ability to create highly complex, lightweight parts. Despite these advantages, barriers to adoption remain. The technology is more costly than traditional methods like casting and forging, making it a challenge for industries sensitive to costs. Additionally, many manufacturers are cautious about adopting new technologies and prefer established methods. Building trust through proven performance and reducing costs through scale are critical steps for wider adoption.
Given the geopolitical climate and the push for supply chain resilience, do you anticipate a significant shift towards localized manufacturing using additive technology?
Yes, we are witnessing a shift toward localized manufacturing. The need for supply chain resilience became evident, especially after COVID-19 exposed vulnerabilities. This shift is further driven by the changing geopolitical landscape and the desire for countries to secure their industrial bases. Industries like defense and aerospace, which rely on critical parts, are increasingly looking to bring production closer to home. Additive manufacturing plays a key role here, offering local production with the flexibility to adapt designs quickly. This shift is complex, however. The semiconductor industry had a more straightforward path with fewer customers and suppliers. In additive manufacturing, there are multiple stakeholders, including governments and manufacturers. Despite these complexities, we see a clear need to reestablish a strong manufacturing base on US and allied soil, aligning well with the capabilities that digital and additive manufacturing offer.
What advancements in laser powder bed fusion and other technologies do you foresee that could drive further adoption of additive manufacturing?
Advancements in LPBF focus on improving productivity, quality, and scalability. Today, our largest machines can produce parts up to 600mm x 600mm x 1.5m, with 12 lasers working simultaneously for higher productivity. Continued improvements in laser guidance, processing speed, and material properties are critical for making additive manufacturing more viable at an industrial scale. Quality and repeatability are essential. Drawing from Nikon’s experience in the semiconductor industry, we see opportunities to apply process control techniques to additive manufacturing, ensuring each part meets precise standards throughout production. These advancements will be crucial in making the technology more attractive to industries that demand high precision and reliability, ultimately helping to achieve broader adoption.
With significant investment and growth in additive manufacturing, what challenges keep you up at night?
Our investment in additive manufacturing is substantial, and we have a responsibility to deliver returns to our shareholders. While no one expects overnight success, the pressure is on to prove that these investments will pay off. Technology adoption involves not just maturing the technology but also building trust across multiple industries.
Each industry has unique challenges, and scaling additive manufacturing requires demonstrating consistent progress. It’s a balancing act between managing complexity and ensuring readiness for broader adoption. We’re optimistic about our direction, but there’s a lot of work ahead to turn this vision into reality.
Nikon has invested heavily in this space, including acquisitions and new facilities. What key milestones do you anticipate, and are there more acquisitions on the horizon?
Nikon has invested around a billion dollars into expanding our presence in additive manufacturing through acquisitions and the development of new facilities. A major milestone is the near completion of our 90,000-square-foot Nikon AM Technology Center in Long Beach, California. This facility is designed as a secure environment, allowing us to integrate our technologies and work closely with customers, particularly in the defense sector. Going forward, while we’re less aggressive on acquisitions for now, our focus is on integrating and maximizing the investments we've made. If opportunities arise that align with our strategic goals, particularly in areas that enhance our additive or digital manufacturing capabilities, we are open to pursuing them. The next phase involves refining our technology, enhancing productivity, and delivering results that meet shareholder expectations.
