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Lumentum CEO warns of impending bottleneck on critical material used for silicon photonics — fab and material shortfall already lags 30% below customer needs as co-packaged optics demand skyrockets

31 July 2026 at 13:45

Lumentum CEO Michael Hurlston told an audience at the RAISE Summit in Paris earlier this month that indium phosphide, the compound semiconductor behind every laser in an AI data center, is heading into a supply squeeze worse than what we've already seen with DRAM / NAND, and that Nvidia's decision to fund Lumentum and its biggest competitor at the same time was a response to exactly that.

In his remarks, Hurlston said that telecom customers bought lasers in the hundreds, while Nvidia and the hyperscalers are asking for hundreds of millions. While Lumentum runs five indium phosphide fabs, it's still shipping more than 30% below what customers want. Nvidia's answer, in March, was to write $2 billion checks to Lumentum and Coherent, the two suppliers that, between them, make most of the world's high-speed datacom lasers, with purchase commitments and future capacity access attached to both.

"Between the two of us, I don't think we can service the demand that Nvidia and others are now putting on us to solve this resistance problem in the data center," Hurlston added.

Silicon doesn't emit light

Indium phosphide has a direct bandgap of roughly 1.34 eV, which lets it convert electrical current into photons efficiently. Silicon's bandgap is indirect, so it can guide, split, and modulate light but can't generate it. Every silicon photonics platform in production, including those of Nvidia, Broadcom, Marvell, and Cisco, still needs an indium phosphide laser somewhere in the package to supply the light for silicon to manipulate. Moving from pluggable transceivers to co-packaged optics changes where that laser sits and how it's mounted, but it doesn't remove it from the bill of materials.

Nvidia's marketing claims its photonics switches use four times fewer lasers than an equivalent pluggable deployment, alongside 3.5 times better power efficiency and ten times better network resiliency, all of which are vendor figures. Those savings are per port, and it's that port count that's exploding.

The high-end Spectrum-X Photonics configuration runs 512 ports at 800 Gb/s for 400 Tb/s of switching, and Quantum-X Photonics InfiniBand runs 144 ports at 800 Gb/s. Co-packaging also shifts the laser type toward high-power continuous-wave sources and external laser modules that feed multiple channels, which are harder to build than the electro-absorption modulated lasers inside a conventional pluggable. Coherent's Nvidia agreement covers that category of high-power CW lasers, external laser source modules, and fiber array units.

Capacity at Lumentum and Coherent

Lumentum posted record revenue of $808.4 million in its fiscal third quarter, up 90% year over year, with components revenue of $533 million and pump laser shipments up 80%. On the May earnings call, Hurlston told analysts the company expects its supply line to increase 50% measured from one December quarter to the next, and in the same breath said the supply-demand imbalance on EMLs had widened from the 25% to 30% given a quarter earlier to "somewhere greater than 30%," with pump lasers tighter still. A supplier growing output by half a turn per year and losing ground anyway is a clean measure of how steep the demand curve is.

Coherent's 6-inch indium phosphide line yields more than four times as many devices as its 3-inch line at less than half the cost, CEO Jim Anderson told investors on the company's fiscal Q3 call. Anderson said EMLs, CW lasers, and photodiodes are all in production on the 6-inch line with yields above the legacy 3-inch lines, and that internal capacity would double by the end of the June quarter, one quarter ahead of plan, then more than double again by the end of 2027. Coherent's revenue hit a record $1.8 billion, up 21%, with data center and communications now 75% of the total against roughly 41% a year earlier, and backlog stretching into 2028.

Logic and memory moved to 300mm wafers in the early 2000s. Indium phosphide is a brittle, expensive, small-boule material where the industry-wide upgrade currently underway is 3-inch to 6-inch, roughly the transition silicon completed in the 1980s. Lumentum's fifth fab, announced in March, is a converted Qorvo gallium arsenide plant in Greensboro, North Carolina, described as 4-inch and 6-inch compatible and ramping around 2028.

Running through China

Indium is recovered as a byproduct of zinc refining, so its output can't be scaled independently of zinc economics, no matter how much laser demand there is. The USGS Mineral Commodity Summaries 2026 put China at an estimated 760 tonnes of roughly 1,100 tonnes of global primary refined indium in 2025, about 69%, and recorded a 72% year-over-year fall in unwrought indium exports between September 2024 and September 2025 after Beijing placed the metal under export controls in February last year. The U.S. warehouse price averaged about $390 per kilogram in 2025 against $340 in 2024.

AXT's Chinese subsidiary Tongmei had to obtain Ministry of Commerce export permits, granted in June and August 2025, before it could resume shipping indium phosphide substrates out of China. The fabs Nvidia is funding sit downstream of that licensing regime, and the wafers going into them aren't made in the United States in meaningful volume.

DRAM contract prices rose 90% to 95% quarter over quarter in Q1 2026, the largest quarterly increase TrendForce has recorded, and the firm forecast a further 58% to 63% in Q2 with NAND up 70% to 75%. HBM is sold out for 2026. Hurlston is measuring his warning against a genuinely historic crunch, which makes it a strong claim rather than a throwaway one, and he runs a company whose valuation depends on the shortage persisting.

LightCounting's April 2026 market forecast puts current transceiver demand about 30% above supply, matching Lumentum's own figure, but states that the shortages should be gone by the end of 2026 and cuts expected Ethernet transceiver growth to 65% for the year after 82% in 2025 and 93% in 2024. Coherent, hitting its capacity doubling a quarter early, points the same way. The distinction from memory is that the fix here is a wafer-size transition already running in production with yields ahead of the old node, not a new fab that takes three years to build.

Shanghai Aishengna named as the maker of China's first domestic immersion DUV chipmaking tools — first viable domestic 7nm-capable scanner to be completed by 2038

30 July 2026 at 17:23

Reuters has named Shanghai Aishengna Electronic Technology Group as the state-owned company producing China's first domestic immersion deep ultraviolet lithography (DUV) scanners, a day after news of the program broke without identifying the manufacturer. Aishengna was established in August 2023 with RMB 7 billion, around $1 billion, in registered capital and is thought to have absorbed engineering teams from Shanghai Yuliangsheng Technology and Shanghai Micro Electronics Equipment.

Aishengna has been named by a single source who declined to be named, and its shareholders, SMEE and Yuliangsheng, didn’t respond to requests for comment. SMIC has been testing a Yuliangsheng immersion tool since September 2025, and first deliveries are slated for SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies.

Photoresist, coater tracks, and light sources

Tokyo Electron held an 89% share of the global coater/developer market in 2022, per Shared Research's analysis of the company's own disclosures, with its chief executive putting the figure near 90% and at 100% for EUV production. A scanner only exposes the wafer, however. It’s the track that's responsible for applying the resist film, baking it, and developing the pattern after exposure, and it has to be mechanically and thermally matched to the scanner in a single cluster, which is why the two are bought together. Shenyang Kingsemi has reached 28nm-class track capability and is currently targeting 14nm.

JSR, Tokyo Ohka Kogyo, Shin-Etsu, and Fujifilm hold a combined 72.5% of the ArF photoresist market, while Chinese suppliers hold under 1% of ArF immersion resist specifically. Nata Opto-electronic built a 25-ton ArF line, later expanded to 50 tons, passed customer qualification in December 2020, and completed project acceptance in 2024 with little volume to show for it. Xuzhou B&C says its ArF immersion products cover 45nm to 28nm and can stretch to 14nm, and chairman Fu Zhiwei has put mass production of China's core advanced resists five years out.

Cymer, Gigaphoton, and Coherent hold more than 80% of the ArF excimer laser market between them, and Cymer has been an ASML subsidiary since 2013. Beijing RSLaser shipped China's first high-power domestic excimer laser in 2018 under the national Project 02 program and has a 4 kHz 193nm ArF prototype aimed at 90nm and 65nm-class tools, generations behind what 28nm immersion requires.

Carl Zeiss SMT has been ASML's sole projection optics supplier since 1983, and Zeiss SMT revenue grew from €1.2 billion in 2016 to €4.1 billion in 2024. It’s not currently known what, if any, Japanese tooling is inside the Aishengna machines, but excimer sources and precision optics are areas where Chinese substitution is believed to be lacking.

CXMT

CXMT is projected to reach around 350,000 wafer starts per month by the end of 2026, roughly 25,000 short of Micron, up from 40,000 in 2020. DRAM scaling at 1a and 1b-class nodes runs on immersion multipatterning because CXMT has no EUV access, which makes any potential ramp lithography-gated rather than cleanroom-gated. DRAM contract prices rose 93% to 98% quarter on quarter in Q1 2026, and TrendForce projected a further 58% to 63% in Q2, lifting DRAM industry revenue 81% to $97 billion. A domestic immersion source is therefore worth having to CXMT, even at inferior overlay and throughput.

A DUV-only 7nm flow needs roughly 19 spacer-defined multipatterning masks from the front end through the second metal layer, against about 10 for an EUV-based N7+ process, by one published comparison of SMIC's process. SemiAnalysis has put SMIC's 7nm defect density near 0.14, around double TSMC's N5 and N6. ASML CEO Christophe Fouquet told analysts during the company's July earnings call that rising DRAM lithography intensity partly reflects "the increased replacement of multi-patterning with more cost-effective single-exposure EUV." As such, every exposure China adds to compensate for the missing EUV burns scanner hours a thin domestic fleet doesn't have.

The MATCH Act

China fell to about 14% of ASML's sales in Q2 2026 from 33% across 2025, and installed base management, the service and upgrade business, brought in €2.8 billion of ASML's €9.3 billion in second-quarter revenue. H.R. 8170 would ban both the export and the servicing of immersion DUV systems to any destination in China and designate SMIC, Hua Hong, Huawei, CXMT, and YMTC as restricted entities by statute. Former ASML chief executive Peter Wennink has said the company can service most Chinese tools, but not with spare parts of U.S. origin that fall under export control, which is the mechanism that the MATCH Act would widen.

The bill remains in committee after clearing the House Foreign Affairs Committee in April, with a Senate companion filed as S. 4281, and no floor vote yet scheduled. Its 150-day allied-alignment clause would also reach Nikon, which sold 11 ArF immersion systems in FY2024 and none in the first three quarters of FY2025, and which plans to deliver a new immersion prototype to a major chipmaker by 2027. ASML expects about 130 immersion shipments this year and intends to raise immersion capacity 30% in 2027, with a further 30% under investigation for 2028.

As for Chinese providers, SMEE prototyped its SSA600 ArF tool in 2011 and never reached sustained commercial sales, and a late-2023 shareholder claim that the company had developed a 28nm machine was subsequently retracted. SiCarrier showed etch, CVD, PVD, and ALD tools at SEMICON China 2025 without a lithography system, and a December 2025 government contract reported as a lithography award turned out to cover a KrF tool at 110nm. We’ve previously assessed that China’s toolmakers are more than a decade behind the market leaders.

The AI Futures Project's June forecast puts a commercially viable domestic 7nm-capable immersion scanner between 2032 and 2038, with a median of 2035, and claims ASML holds 98.7% of the immersion market today. Five machines in 2026 would be under 4% of ASML's annual immersion output, and each would still need a coater track, a qualified ArF immersion resist, and an excimer source to print a single wafer; China leads in none of those three.

Fortastra and Hadrian join forces to streamline satellite production

29 July 2026 at 14:00

SAN FRANCISCO – Fortastra, a Los Angeles startup focused on defending on-orbit infrastructure, is working with manufacturing specialist Hadrian to explore ways to apply precision machining and additive manufacturing to […]

The post Fortastra and Hadrian join forces to streamline satellite production appeared first on SpaceNews.

Varta Crisis Deepens After Apple Battery Defection

25 July 2026 at 11:21

The Varta crisis has entered another severe phase after the German battery manufacturer lost the customer responsible for nearly all production at its specialized factory in Nördlingen.

Varta has not publicly identified that customer, but reports from German media and industry sources point to Apple. The iPhone maker is reportedly moving battery orders for a future AirPods generation to a lower-cost supplier in China.

The decision will lead Varta to stop producing rechargeable button cells in Nördlingen during fall 2026. Approximately 350 jobs will be eliminated across the factory and the company headquarters in nearby Ellwangen.

Describing the development as a complete corporate collapse would go too far. Varta continues operating other battery businesses and recently completed an extensive financial restructuring backed by Porsche. The loss of Apple, however, has destroyed the economic foundation of a production site created around one highly influential customer.

A smartphone with a transparent back, revealing internal components like the battery, camera, and circuitry—crafted with Apple 3D printing—displayed on a black background with a small Apple logo in the lower right corner.

Varta Crisis Exposes Dependence on Apple

The Varta crisis illustrates how a large technology customer can transform a supplier and then leave it with capacity that cannot easily be reassigned.

Varta became an important producer of CoinPower lithium-ion cells, small rechargeable batteries designed for wireless earbuds and other compact devices. Teardowns of AirPods Pro models identified Varta cells inside the earbuds, although Apple does not publicly discuss most component suppliers by product.

Demand from premium wireless headphones helped Varta expand rapidly. In 2020, its Microbatteries and Solutions division generated approximately €508 million in revenue, representing growth of 49% from the previous year.

The company invested heavily in production as wireless earbuds became a mass-market category. Apple demand provided the volume needed to justify specialized lines, equipment and hiring in Germany.

That dependence became dangerous when AirPods production weakened and Apple began adding other battery suppliers. A factory developed for unusually large orders could not operate efficiently once those orders declined.

The customer now leaving Nördlingen had previously accounted for nearly the entire capacity of the site. Varta says it has gained other customers, but their combined demand is not sufficient to keep the specialized factory running.

The plant is therefore closing not because rechargeable button cells have disappeared, but because replacing one customer of Apple scale requires far more than several smaller contracts.

Price Reportedly Decided the AirPods Order

German reports indicate that price was the decisive factor behind the supplier change.

Varta battery quality was reportedly equal to or better than the competing product. The German manufacturer could not, however, match the cost offered for the next generation of cells from China.

Battery production in Germany faces higher labor, energy and operating expenses than many Asian manufacturing centers. Chinese suppliers also benefit from extensive domestic electronics supply chains, access to materials and production volumes spread across numerous customers.

Apple has enormous leverage when negotiating component contracts. AirPods ship in sufficient quantities for a small difference in the cost of each battery to produce substantial savings across an entire product cycle.

The company regularly qualifies multiple suppliers for components when technical requirements and available capacity permit. Competition can reduce prices, protect production against interruptions and prevent one manufacturer from gaining excessive influence over the supply chain.

For Varta, that process brought the opposite effect. The supplier expanded to serve Apple and then faced declining utilization as the customer divided orders among additional manufacturers.

The latest move appears more final. Varta expects the contract to expire at the end of October, removing the volume that kept Nördlingen economically viable.

A pair of white AirPods Pro 3 wireless earbuds with black accents are shown above an open white charging case, all set against a plain white background—perfect for seamless audio and features like live language translation from Apple.
Image Credit: Apple Inc.

Apple Supplier Strategy Is Not Simply About China

The reported decision does not mean Apple is moving its complete production network toward China.

Apple has spent several years expanding device assembly and component production in India, Vietnam and other countries. AirPods manufacturing has grown in India, while Macs, iPads and wearables are assembled across a wider group of Asian locations.

The Varta case concerns a particular component for which a Chinese supplier reportedly offered a more competitive price. It shows that diversification away from one country can coexist with cost-driven sourcing from that same country.

Apple may reduce its dependence on Chinese final assembly while continuing to purchase Chinese batteries, displays, enclosures or electronic components when suppliers provide the required scale and pricing.

That balance creates a difficult environment for European manufacturers. Political interest in domestic technology production does not guarantee that major customers will accept higher component prices.

Premium engineering can protect a contract when it produces a measurable advantage in battery capacity, safety, dimensions or lifespan. Once competing suppliers reach comparable performance, procurement decisions become increasingly sensitive to cost.

The Varta crisis suggests that manufacturing location and supplier history carried less weight than the economics of the next AirPods battery.

Varta Was Already Fighting Financial Failure

Apple did not create every problem affecting Varta.

The company entered the current dispute after years of debt, costly investments, volatile customer orders, supply-chain problems and weaker demand in parts of its energy-storage business. A cyberattack in early 2024 also disrupted production and delayed financial reporting.

Varta warned that its earlier restructuring plan might fail after Apple reduced AirPods production. By mid-2024, the company had reached a point where it could no longer service its debt without another intervention.

A pre-insolvency restructuring reduced financial liabilities from approximately €485 million to €200 million. Porsche and majority shareholder Michael Tojner agreed to provide new capital, while creditors supplied additional financing.

Existing shareholders lost their investment as Varta was removed from the stock market. The process preserved the operating company but demonstrated how little financial room remained for another major disruption.

Varta reported a loss of €64.5 million for 2024. Although that was an improvement from the previous year, the business remained dependent on successful restructuring and stronger performance from its surviving divisions.

The Apple contract loss therefore did not independently bring down a healthy battery group. It struck a manufacturer that had already narrowly avoided insolvency.

Aerial view of a large industrial complex—possibly one of the key Apple suppliers—surrounded by trees, parking lots with cars, and several buildings. There are roads and green fields nearby, with a small round building in the lower right corner, perhaps connected to the facility's production or storage of CoinPower cells amid the recent Varta crisis.
Image Credit: Wikipedia

Porsche Cannot Protect Every Varta Business

Porsche participation gives Varta a future in automotive batteries, but it does not rescue the Nördlingen button-cell operation.

The automaker invested in the restructuring and took control of the V4Drive business, which develops high-performance cylindrical lithium-ion cells for hybrid and performance vehicles. Porsche gains greater access to battery technology while helping retain part of that expertise in Germany.

Varta also continues producing household batteries and energy-storage systems. Those businesses serve different customers and do not depend on the machinery used for tiny CoinPower cells.

Employees affected by the Nördlingen closure may be offered positions at other locations, although Varta has not indicated how many can realistically be transferred. The company and its works council are negotiating measures for the workers whose roles will disappear.

The shutdown leaves a modern production unit without enough demand only a few years after wireless earbuds were presented as one of Varta most promising growth markets.

Its remaining automotive operation now has the security of a strategic customer with a direct ownership interest. The microbattery division learned the cost of building a factory around a customer that never made the same commitment.

The post Varta Crisis Deepens After Apple Battery Defection appeared first on AppleMagazine.

Trump admin secures record $265 billion TSMC investment in U.S. semiconductor manufacturing, adding 4 new facilities for total of 12

16 July 2026 at 17:00

TSMC

In a major boost to American domestic manufacturing, the Trump Administration today announced that Taiwan Semiconductor Manufacturing Company (TSMC) is committing an additional $100 billion in investments for advanced semiconductor facilities in the United States. This brings TSMC’s total planned investment to $265 billion — one of the largest foreign direct investments in American history.

The announcement, made jointly by the White House and the Department of Commerce, highlights the success of strategic trade and investment partnerships, particularly the historic U.S.-Taiwan deal signed in January 2026. As a direct result, TSMC will build four additional advanced semiconductor manufacturing and packaging facilities, bringing its U.S. footprint to 12 leading-edge facilities, primarily in Arizona.

Building on Momentum

This latest expansion builds on previous commitments. TSMC’s original plans started at around $65 billion, which were later increased. The new infusion underscores sustained momentum under the current administration’s focus on reshoring critical supply chains.

In a statement, U.S. Commerce Secretary Howard Lutnick emphasized the job-creating impact, “President Trump’s leadership is driving companies to invest in American manufacturing. TSMC’s announcement of an additional $100 billion investment following our historic deal on trade and investment with Taiwan will create tens of thousands of American jobs and bring advanced semiconductor manufacturing back to America.”

TSMC Chairman and CEO Dr. C.C. Wei echoed the sentiment, crediting collaboration with the administration and strong U.S. customer demand, “We appreciate the strong collaboration and support of the Trump Administration, Secretary Lutnick and our leading U.S. customers… This is to support the strong multi-year demand from our leading U.S. customers, and we believe this investment will further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain, and support significant job creation in the United States.”

Economic and Strategic Impact

The investments are expected to generate significant construction and high-tech jobs, along with billions in indirect economic output. Beyond direct facilities, the broader U.S.-Taiwan trade and investment framework is catalyzing an additional $500 billion in Taiwanese investments — $250 billion in direct semiconductor and related enterprises, plus another $250 billion to strengthen the full supply chain in the U.S.

This move addresses long-standing concerns about reliance on overseas production for advanced chips, especially those critical for AI, defense, automotive, and consumer electronics. By expanding domestic capacity with a world-leading foundry like TSMC, the U.S. strengthens its position in the global semiconductor race while creating high-paying opportunities for American workers.

The Trump Administration’s approach, which combines diplomatic deals, incentives for onshoring, and a focus on national security, continues to yield concrete results in rebuilding America’s industrial base.
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MacDailyNews Take: With 12 state-of-the-art facilities on track, America is poised to capture a much larger share of advanced chip production. This not only bolsters economic competitiveness, but also enhances supply chain resilience against geopolitical risks.


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The post Trump admin secures record $265 billion TSMC investment in U.S. semiconductor manufacturing, adding 4 new facilities for total of 12 appeared first on MacDailyNews.

Advanced Recycling Hits a Rough Patch

10 July 2026 at 13:11
In the past weeks, two sites in the United States have halted operations.

© Maddie McGarvey for The New York Times

Unlike traditional mechanical recycling, advanced recycling can theoretically process mixed or contaminated plastics that otherwise would end up in landfills.

With Starfall, SpaceX eyes an edge in global cargo delivery from orbit

23 June 2026 at 06:25

A SpaceX Falcon 9 rocket lifted off on Tuesday to test a new reentry vehicle designed to deliver cargo anywhere in the world from low-Earth orbit.

The company developed the new saucer-shaped reentry pod, called Starfall, under a veil of secrecy. Its purpose is to support the "transport and delivery of goods through space," according to an environmental assessment published by the Federal Aviation Administration last month.

The first demonstration of the Starfall vehicle began at 6:53 am EDT (10:53 UTC) with liftoff aboard a Falcon 9 rocket from Cape Canaveral Space Force Station, Florida. At least one Starfall reentry pod rode to orbit on the Falcon 9, perhaps alongside another undisclosed payload. After circling the planet two times, the Falcon 9's upper stage was expected to release Starfall for atmospheric reentry, targeting a parachute-assisted splashdown in the Pacific Ocean around 800 miles west of California.

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With Starfall, SpaceX eyes an edge in global cargo delivery from orbit

23 June 2026 at 06:25

A SpaceX Falcon 9 rocket lifted off on Tuesday to test a new reentry vehicle designed to deliver cargo anywhere in the world from low-Earth orbit.

The company developed the new saucer-shaped reentry pod, called Starfall, under a veil of secrecy. Its purpose is to support the "transport and delivery of goods through space," according to an environmental assessment published by the Federal Aviation Administration last month.

The first demonstration of the Starfall vehicle began at 6:53 am EDT (10:53 UTC) with liftoff aboard a Falcon 9 rocket from Cape Canaveral Space Force Station, Florida. At least one Starfall reentry pod rode to orbit on the Falcon 9, perhaps alongside another undisclosed payload. After circling the planet two times, the Falcon 9's upper stage was expected to release Starfall for atmospheric reentry, targeting a parachute-assisted splashdown in the Pacific Ocean around 800 miles west of California.

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© SpaceX

With Starfall, SpaceX eyes an edge in global cargo delivery from orbit

23 June 2026 at 06:25

A SpaceX Falcon 9 rocket lifted off on Tuesday to test a new reentry vehicle designed to deliver cargo anywhere in the world from low-Earth orbit.

The company developed the new saucer-shaped reentry pod, called Starfall, under a veil of secrecy. Its purpose is to support the "transport and delivery of goods through space," according to an environmental assessment published by the Federal Aviation Administration last month.

The first demonstration of the Starfall vehicle began at 6:53 am EDT (10:53 UTC) with liftoff aboard a Falcon 9 rocket from Cape Canaveral Space Force Station, Florida. At least one Starfall reentry pod rode to orbit on the Falcon 9, perhaps alongside another undisclosed payload. After circling the planet two times, the Falcon 9's upper stage was expected to release Starfall for atmospheric reentry, targeting a parachute-assisted splashdown in the Pacific Ocean around 800 miles west of California.

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Comments

© SpaceX

In 1908, a 27-year-old Bavarian invented a five-letter word that would fit on a watch dial in any language — and trademarked it before he had a factory to make the watches

18 June 2026 at 10:57
vintage Rolex dial closeup

The word Rolex has five letters, two syllables, and works in every language a marketer might want to sell into. It is short enough to sit on a watch dial without crowding the hands, blunt enough to pronounce in German, French, Japanese, and Hindi without distortion, and abstract enough to mean nothing at all. A young Bavarian named Hans Wilsdorf registered it as a trademark in 1908 in La Chaux-de-Fonds, Switzerland, years before he had a factory of his own. The name came first. The watches followed.

That sequence — invent the word, secure the word, then build the company around it — is one of the earliest known examples of what marketers would later call a coined brand. Wilsdorf did it in 1908 for a product he did not yet manufacture.

In 1908, a 27-year-old Bavarian invented a five-letter word that would fit on a watch dial in any language — and trademarked it before he had a factory to make the watches
Photo by ClickerHappy on Pexels

A word designed for a dial

Wilsdorf had ended up in London after a stint at a watch exporter in La Chaux-de-Fonds. By his mid-twenties he was importing Swiss movements and casing them in England under the unglamorous name Wilsdorf & Davis. He wanted something better. He wanted a name that was short, memorable, pronounceable in any European tongue, and small enough to be legible above the 12 o’clock marker of a wristwatch barely 30 millimetres across.

The constraints were real.

Try the test yourself. Write your favourite watch brand on a dial 30 millimetres wide, leaving room for hour markers, a logo, and the hands. Patek Philippe is thirteen letters and a space. Vacheron Constantin is eighteen. Jaeger-LeCoultre is fifteen and a hyphen. Rolex is five. On a wrist seen from across a room, five wins.

The phonetics of a global product

The cleverness sits in what the word avoids. There is no diphthong that collapses in Mandarin. No silent letter that an English speaker would mispronounce in French. No umlaut. No accent. No consonant cluster that trips an Italian tongue. The two syllables — ro and lex — are phonemes that exist in nearly every major language. A Tokyo retailer and a Geneva concierge say the word almost identically.

This was not accidental. By his own account, Wilsdorf wanted a name that was short, easy to say and remember in any language, and that looked good on a dial — a goal he later described as the reason he ran through hundreds of letter combinations before settling on Rolex, as Rolex itself recounts in its company history. He had also learned, selling watches across the British Empire and into continental Europe, that brand names with national flavour travelled badly.

He got one. Rolex is the closest thing the watch industry has ever produced to a piece of linguistic infrastructure — a sequence of sounds engineered to survive translation.

Trademark first, factory later

Wilsdorf registered the name in Switzerland in 1908 — the surviving registry entry is dated 2 July 1908 and lists the La Chaux-de-Fonds office of Wilsdorf & Davis, as the original trademark record reproduced in horological archives shows. He was still operating out of London and still casing movements supplied by Hermann Aegler’s workshop in Bienne. He did not own a Swiss manufacturing operation. He owned a word, an import-export business, and a hunch that wristwatches — at that point still dismissed as women’s jewellery, a prejudice Space Daily has explored in detail — would become the dominant form of timekeeping for men within a generation.

He was right on both counts. The First World War, with its trench officers needing both hands free, did for the wristwatch what no advertising campaign could. By 1919 Wilsdorf had relocated to Geneva, partly because British post-war duties made exporting from London punishing, and partly because anti-German sentiment in Britain had already pushed him to rename the firm The Rolex Watch Co. Ltd. in 1915, a change Britannica attributes to wartime prejudice against the German-sounding Wilsdorf name. The company that became synonymous with Swissness was Swiss almost by accident of geopolitics.

Hans Wilsdorf portrait archival

What a name buys you

Coining a word does something specific that descriptive names cannot. A descriptive name — Universal Geneve, International Watch Company — tells you what the thing is and where it comes from, and that’s the ceiling of its meaning. A coined word is an empty vessel. Whatever you pour into it over decades of advertising, sponsorship, and product, the word holds.

Wilsdorf began pouring almost immediately. The company developed the Oyster case, among the first commercially viable waterproof wristwatches. In 1927 a young London typist named Mercedes Gleitze, the first British woman to swim the English Channel, wore an Oyster during a high-profile Channel swim, and Wilsdorf took out prominent newspaper advertising to promote it. The word Rolex had its first myth.

The dress watch market is still organised around names of this kind. A 2025 Esquire review of a dress watch describes the category in language Wilsdorf would have recognised: thinness, legibility, restraint. The dials of the watches sitting next to it in auction catalogues all carry short, abstract words. Omega. Cartier. Tudor. Seiko. The naming convention Wilsdorf arrived at in 1908 became the default the rest of the industry now follows.

The decision that made Rolex unbuyable

Naming was the first of two structural decisions that made Rolex what it is. The second came after the death of Wilsdorf’s wife, Florence. Childless and grieving, he created the Hans Wilsdorf Foundation and, in his will, left every share of Rolex to it. When he died in 1960, the foundation became the sole owner. That arrangement — which Space Daily has covered separately — means no shareholder can demand a dividend, no rival can buy the company, and no quarterly report has to be filed. Rolex’s finances remain opaque because there is no legal obligation to publish them.

The opacity is the point. Because the company discloses nothing, every revenue figure is an outside estimate: analysts at Morgan Stanley and LuxeConsult put Rolex’s annual wholesale revenue above CHF 11 billion in their most recent reading, while cautioning that the brand publishes no official figures of its own. The foundation, a registered Swiss charitable trust, directs funds to charitable causes, including children’s charities — a nod to Wilsdorf’s own childhood as an orphan.

In 2023, Rolex agreed to buy Bucherer, its largest retailer, consolidating a distribution partner it had worked with for a century. A privately held watchmaker had moved to absorb its own biggest distributor, the kind of step no public company answerable to shareholders would have executed so quietly.

The freedom to make moves like that traces back to two decisions taken decades apart by the same man. First, in 1908, to coin a word with no national origin and trademark it before he had a factory. Second, decades later, to put the company beyond ownership. The first decision gave Rolex a name that could be sold anywhere. The second made sure no one could ever sell Rolex.

What five letters still do on a dial

Pick up a Submariner. The word sits above the centre pinion in a sans-serif crown-logo lockup that has barely changed in eighty years. Five letters. About four millimetres wide on a 40 mm dial. The eye reads it before it registers the hour. On a black bezel diving watch under a cocktail-bar lamp, the word is legible at three metres. On a gold Day-Date across a boardroom table, it’s legible at five.

That legibility is a function of letter count. Six letters would have required a smaller font. Eight would have required either a smaller font or a curved arc that distorts the reading angle. Five fits the optical sweet spot of a wristwatch dial almost perfectly — the horological equivalent of a logo built for a smartphone home screen, except Wilsdorf made the choice in 1908, when the dominant timepiece was still a pocket watch on a chain.

There is a reason the watch industry has not produced another Rolex-style word in the 118 years since. Most of the obvious five-letter, language-neutral combinations were registered long ago. The rest sound like pharmaceuticals. Coining a word that means nothing and survives a century of meaning being poured into it is harder than it looks, and the field is crowded with failures whose names you have already forgotten.

The trademark filing in La Chaux-de-Fonds in 1908 predated the existence of Rolex SA as an independent Swiss manufacturer by years. It predated the Oyster case by nearly two decades. It predated the foundation that owns the company today by several decades. It predated the watch on the wrist of an English Channel swimmer by nearly twenty years. For most of its first decade, the word Rolex sat on watches whose movements were made by other people, in cases assembled by other people, sold under a name that belonged to a young Bavarian importer in a rented London office. The word did the work. The factory caught up later.

Look at a Rolex dial today and you are reading a piece of linguistic engineering that is older than the Russian Revolution, older than the Model T, older than the first transatlantic flight. The hands have moved roughly a billion times around it. The word has not.

The post In 1908, a 27-year-old Bavarian invented a five-letter word that would fit on a watch dial in any language — and trademarked it before he had a factory to make the watches appeared first on Space Daily.

PLSaoNET: Revolutionizing Industrial Network Training with a Deterministic Approach

17 June 2026 at 15:56

In recent years, the evolution of industrial sensing technologies has been pivotal to the advancement of intelligent manufacturing systems. Among various approaches, artificial neural networks (ANNs) have garnered immense attention due to their remarkable capability to model complex data relationships. However, applying these networks effectively in real-world industrial environments remains a formidable challenge, primarily due to the noisy, nonlinear, and often limited datasets encountered in such settings. Recognizing these constraints, a team of researchers led by Professor Lanxiang Sun at the Shenyang Institute of Automation, Chinese Academy of Sciences, has forged a transformative approach. Their groundbreaking solution, known as the Partial Least Squares-assisted Optimization Network (PLSaoNET), promises to redefine the application of neural networks in industrial sensing by embedding statistical interpretability into the heart of deep learning models.

Traditional neural networks typically commence training through random initialization of weights—a process that, while standard, lacks any guiding framework grounded in data characteristics. This randomness poses inherent limitations, especially when the amount of training data is limited or when the data exhibits high noise levels and nonlinear relationships, both common in industrial scenarios. Such conditions often result in poor generalization and unstable predictive outcomes, thereby hindering practical deployment. The innovation from Professor Sun’s team circumvents these issues through a statistical method known as Partial Least Squares (PLS), a classic tool renowned for its interpretability and robustness in linear regression tasks.

PLS works by extracting latent variables that capture the fundamental relationships between independent variables (input features) and dependent variables (output targets), offering a transparent statistical framework. While PLS excels in linear modeling, it lacks the capability to model complex nonlinear dynamics. The research team ingeniously leveraged the strengths of PLS by integrating its solutions as the initial conditions within a neural network architecture. Specifically, the number of PLS latent variables dictates the number of neurons in the network’s hidden layer, and the PLS-derived weight matrix initializes the neural connections. This initialization endows the neural network with a statistically meaningful starting point, effectively eliminating the guesswork inherent in random weight assignments.

Such a well-founded initialization transforms the learning process from an unfocused blind search into a systematic refinement of the PLS solution, integrating nonlinear modeling capabilities while preserving interpretability. This fusion of statistical rigor and deep learning adaptability addresses one of the fundamental bottlenecks in industrial data modeling, enabling the network to capture both the global trends identified by PLS and the nuanced nonlinear interactions vital for accurate predictions.

Moreover, industrial datasets frequently suffer from uneven label distributions, posing significant challenges during the training of neural networks using stochastic gradient descent. Fluctuations in loss values caused by biased mini-batch samples can lead to instability and degrade the overall learning process. To counter this, the researchers implemented a stratified sampling-based training strategy. In this approach, the entire dataset is divided into strata based on label value ranges, ensuring that each mini-batch during training samples from each stratum proportionally. This methodology smooths gradient updates, fortifying the network’s robustness against skewed data distributions and enhancing training stability substantially.

Professor Sun has emphasized that the primary motivation behind PLSaoNET is not to pursue architectural complexity but to advocate for models that produce stable, reliable outputs even when faced with small, noisy datasets that typify industrial environments. By embedding PLS’s statistical solutions into neural network training, the model’s learning trajectory gains a trustworthy, transparent foundation from which to build more complex representations.

To validate the efficacy of PLSaoNET, the research team conducted comprehensive experiments in two realistic industrial applications: the online monitoring of iron ore concentrate slurry grade using laser-induced breakdown spectroscopy (LIBS), and diesel fuel quality assessment with near-infrared (NIR) spectroscopy. Both cases involve complex spectral data with significant noise and nonlinear characteristics—ideal testbeds to showcase the robustness of PLSaoNET. Results consistently demonstrated superior prediction accuracy and generalization capabilities over traditional PLS regression and conventionally initialized backpropagation neural networks.

A particularly revealing insight emerged from the visualization and analysis of hidden layer weights in the LIBS slurry model. While the PLS model alone lacked precision, the dominant latent variables it extracted aligned clearly with known spectral emission lines from key mineral elements like silicon, magnesium, and iron, reflecting true physical relevance. In contrast, networks initialized randomly exhibited neuron weights that failed to selectively identify meaningful spectral features, resulting in noisy, uninterpretable representations. The PLSaoNET model, however, preserved the interpretability inherent to PLS by focusing attention on these dominant spectral features while simultaneously allowing fine-tuned retraining that accentuated secondary information related to elements like calcium and aluminum. This balance effectively suppresses overfitting and elevates model reliability.

Not content with theoretical validation alone, the team successfully deployed PLSaoNET within a live LIBS slurry analyzer at a mineral processing plant for real-time iron ore concentrate grade monitoring. This real-world application underscores PLSaoNET’s practical value in lowering the barriers to widespread adoption of artificial neural networks in industrial contexts. By anchoring the initial network parameters in statistically meaningful solutions and employing thoughtful training strategies, PLSaoNET represents a crucial step toward integrating cutting-edge AI models into complex, noise-prone industrial environments where data scarcity and variability have historically impeded progress.

Looking beyond its immediate applications, PLSaoNET delivers a broader paradigm shift, suggesting that harmonizing classical statistical techniques with modern deep learning can unlock new frontiers in intelligent industrial sensing. As manufacturing systems increasingly embrace digital transformation, methods like PLSaoNET that offer interpretability, stability, and adaptability will become indispensable tools for building resilient, data-driven infrastructures.

In conclusion, the work by Professor Lanxiang Sun and colleagues embodies a fusion of statistical principled approaches and adaptive machine learning techniques, producing an ANN model that addresses longstanding challenges in industrial data analysis. With its innovative PLS-based initialization and stratified sampling training, PLSaoNET not only enhances predictive performance but also paves the way for more interpretable, reliable AI systems in industrial manufacturing. As industries worldwide continue to seek intelligent sensing solutions that function robustly under real-world constraints, PLSaoNET stands out as a promising, practical breakthrough.


Subject of Research: Advanced artificial neural network design for improved industrial sensing under constraints of small, noisy, and nonlinear datasets.

Article Title: PLSaoNET: A Generalized ANN Model Under PLS Statistical Constraints for Industrial Sensing

News Publication Date: 5-May-2026

Web References:
http://dx.doi.org/10.1016/j.eng.2026.01.032

Image Credits: Lanxiang Sun


Keywords

Industrial sensing, artificial neural networks, partial least squares, PLSaoNET, stratified sampling, nonlinear modeling, intelligent manufacturing, spectral analysis, laser-induced breakdown spectroscopy, near-infrared spectroscopy, deep learning initialization, model interpretability, industrial data analytics

From Cleaner “Cracking” to Black Gold: A Scientific Breakthrough

16 June 2026 at 23:15

In a breakthrough that could reshape the future of sustainable materials and energy production, researchers at the University of Pittsburgh’s Swanson School of Engineering have unveiled a revolutionary method of producing high-quality graphite at significantly lower temperatures than those traditionally required. The pivotal discovery emerged unexpectedly in the laboratory of Professor Götz Veser, where ethane was pumped through molten metal heated to under 1,000 degrees Celsius. Contrary to expectations, the carbon byproduct that surfaced was not the usual mundane residue but a fluffy, high-grade graphite, a material that has become a cornerstone in advanced battery technologies.

Graphite, often hailed as “black gold,” particularly in contexts involving automotive and high-tech sectors, is indispensable for lithium-ion batteries that power electric vehicles and modern electronics. Currently, the industrial synthesis of such graphite is a notoriously energy-heavy process necessitating temperatures approaching 3,000 degrees Celsius. Moreover, the global supply chain is heavily dependent on China, which accounts for some 95 percent of battery-grade graphite production. This dependency presents significant challenges in energy efficiency, sustainability, and geopolitical autonomy.

The Pittsburgh team, led by Professor Veser and former PhD candidate Aime Laurent Twizerimana, along with Assistant Professor Mohammad Masnadi and PhD student Nader Sawtarie, recognized the urgent need for an energy-efficient and domestically viable alternative. Their research harnessed an underexplored catalytic method involving molten metals, a concept that traces its roots back nearly a century but remained largely unexploited in this context. Unlike conventional solid catalysts, molten metal catalysts offer a unique physical characteristic: their extreme density causes carbon to separate and float atop the molten medium, simplifying collection and preventing reactor clogging.

The process began as an effort to develop greener pathways for ethylene production by “cracking” ethane, a major component of natural gas abundant in Western Pennsylvania. Ethane cracking conventionally involves steam reforming, a technique plagued by continuous formation of carbon deposits that necessitate frequent shutdowns for maintenance. However, the molten metal catalysis technique demonstrated a cleaner and more efficient alternative, reducing energy input while producing valuable byproducts.

As Twizerimana delved deeper into his doctoral research, he noticed a curious variation in carbon morphology when different metals were employed. Some metals yielded a fluffy, distinct carbon arrangement rather than the dense deposits typically associated with ethane cracking. This observation spurred further analysis by Sawtarie, whose expertise in two-dimensional metals and graphene characterization was instrumental. Their collaboration revealed that this fluffy substance was, in fact, high-value graphite, matching or exceeding quality standards for battery applications.

This discovery not only offers a lower-temperature route for graphite synthesis but simultaneously generates hydrogen as a co-product. Hydrogen, widely recognized as a clean energy vector, complements the sustainability credentials of this novel process by providing an additional revenue stream and reducing reliance on fossil-fuel-based hydrogen production methods.

Revolutionizing a process that typically demands prolonged batch operations at scorching temperatures—often taking up to three weeks—this new method offers a continuous, scalable approach that could dramatically reduce carbon emissions and costs. While small-scale graphite production in the United States exists, it remains economically uncompetitive compared to Chinese imports. The Pittsburgh innovation aims to close this gap by delivering domestic, scalable, and cost-effective graphite synthesis.

Supported by the University of Pittsburgh’s Big Idea Center, which provides vital mentorship and resources for entrepreneurial ventures, the research team transitioned their laboratory success into a startup named Graphonos Materials. The startup’s disruptive technology captured the imagination of investors and judges alike, securing a $20,000 Aramco Innovator Prize at the prestigious Rice Business Plan Competition—an event often dubbed the “Super Bowl” of entrepreneurial pitch contests.

Beyond financial endorsements, these achievements underscore the market’s clear appetite for sustainable, low-cost graphite and the critical role such materials play in the clean energy transition. The team is currently advancing toward developing a fully integrated bench-scale system capable of producing kilograms of graphite per day. This milestone is a crucial stepping stone toward pilot-scale demonstrations and eventual commercialization, aligning with global efforts to localize critical materials supply chains and innovate energy-efficient manufacturing.

If realized at scale, the process promises dual environmental and economic benefits by transforming Western Pennsylvania’s ethane reserves into essential raw materials that undergird electric vehicles, renewable energy storage, and advanced electronics. It embodies a strategic pivot from traditional fossil fuel processing to value-added chemical production within a circular economy framework, contributing meaningfully to energy transition narratives.

As the demand for lithium-ion batteries accelerates worldwide, fueled by electrification policies and consumer preferences, the importance of sustainable graphite synthesis cannot be overstated. The Pittsburgh innovation leverages unique catalytic chemistry and materials science to disrupt entrenched production paradigms marked by extreme energy consumption and geopolitical bottlenecks.

Ultimately, this development is emblematic of how interdisciplinary research—melding chemical engineering, materials science, and entrepreneurship—can yield tangible solutions to pressing global challenges. By capturing the potential of molten metal catalysis, the Graphonos Materials team paves the way for greener, domestic production pathways that harmonize economic competitiveness with environmental stewardship.

Subject of Research:
Advanced molten metal catalytic process for low-temperature synthesis of battery-grade graphite and hydrogen co-production.

Article Title:
University of Pittsburgh Researchers Innovate Low-Temperature Molten Metal Catalysis to Produce Sustainable Battery-Grade Graphite

News Publication Date:
April 2024

Web References:

  • University of Pittsburgh Swanson School of Engineering Faculty Pages
  • Rice Business Plan Competition Official Website
  • Aramco Ventures News Releases

Keywords:

  • Chemical engineering
  • Molten metal catalysis
  • Graphite production
  • Battery materials
  • Ethane cracking
  • Sustainable manufacturing
  • Hydrogen co-production
  • Lithium-ion batteries
  • Energy transition
  • Clean energy technologies
  • Chemical reactors
  • Circular economy
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