The Friday Report Blog: September 23rd, 2022

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

 

Micron Boosts Chip Production with $15 Billion Facility

Micron Technologies announced the construction of a $15 billion microchip fabrication facility in Boise, Idaho. Construction is set to begin in 2023 with the facility going online in 2025. The plant will be the first new chip manufacturing facility built in the United States in two decades.

The new fabrication facility is part of Micron’s plan to invest $40 billion into advanced memory chip manufacturing over the next ten years. The company will also invest an additional $15 million into advanced memory production through 2030.

Micron has said that they plan to produce 40% of their dynamic random access memory chips in the U.S. over the next decade. The company’s Research and Development center will work closely with the new facility to speed chip production by streamlining technology implementation and lowering the time it takes products to get in the hands of consumers.

Micron joins Intel and GlobalFoundries in efforts to improve the semiconductor supply chain and bolster semiconductor manufacturing in the United States. Intel is constructing a $20 billion semiconductor fabrication facility in Ohio, while GlobalFoundries is expanding its New York manufacturing site.

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Smart Garage Tech Company Now Part of Walmart’s InHome Delivery Service

Walmart has struck a deal with myQ that will make receiving groceries easier for consumers. Walmart will use myQ’s smart garage technology to gain access to consumers’ garages so that they can safely drop off deliveries. The technology will become part of Walmart’s InHome program and will improve the security of the garage delivery service.

Walmart launched their InHome service in 2019. They recently announced plans to expand from 6 million U.S. households to 30 million by the end of 2022. InHome currently operates in Miami, Dallas, and San Francisco.

According to myQ, one in five homes is equipped with its smart garage door technology. The company’s technology is compatible with smart garage door opener makers LiftMaster and Chamberlain. Walmart’s expansion of its InHome service joins Amazon’s in-garage delivery programs, Amazon Fresh and Whole Foods Market.

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Final-Mile Delivery Service Set to Launch in 50 Markets

Last-mile delivery service The Frontdoor Collective, has announced plans to launch in 50 markets by the end of 2023. The company specializes in e-commerce last-mile delivery and plans to expand with a franchise delivery model. The company currently operates in Pittsburgh, Boston, and Philadelphia. They will expand into Southern California and Arizona by the end of 2022.

The Frontdoor Collective relies on franchises to make last-mile deliveries. The company currently has 95 franchisees who have committed to providing delivery service with an additional 300 franchisees awaiting approval. The Frontdoor Collective’s business model requires franchisees to own an active delivery service within the area that they request to deliver in. Franchisee contracts are becoming more popular due to the better state and federal protections versus independent contracts.

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