This is an automatic optical punch machine:
Using camera technology, this machine finds a printed circle on the material and punches it out. The circle just has to be within the viewfinder range and it will perfectly align and punch out the hole.
Screen printing, die cutting, embossing, laser cutting, dome placement, and assembly, are all very precise processes; each step of manufacturing must be completed with precision. The holes cut out with the optical punch machine are used to align every layer, every step of the process, on pins (pin alignment). Without pin alignment, the parts would fail to be cut consistently within tolerances, there is greater risk for misregistration, and many parts would be inoperable (which makes for a lot of added scrap and rework costs, not to mention unhappy customers). Pin alignment eliminates process risks and increases consistency!