Growing Demand for AI Chips Highlights the Need for Transparent and Efficient Supply Chains

The rapid growth in demand for artificial intelligence (AI) chips underscores the importance of transparent and efficient supply chains. Innovative solutions are essential to ensure full traceability of raw materials across the entire supply chain.

Digital systems such as Adey ERP and BSM, combined with Hyperledger Fabric, enable seamless supply chain tracking—from the source of raw materials to the finished product. Smart Contracts ensure quality, sustainability, and efficiency.

GRI 14: Sustainability in Mining and Raw Materials

The semiconductor industry, particularly for AI chips, relies heavily on raw materials such as silicon, copper, and rare earth elements. GRI 14 focuses on sustainable mining practices to minimize environmental impact and enhance social responsibility.

By integrating GRI 14 standards into Adey ERP and BSM, companies can achieve their ESG goals while ensuring traceability and compliance throughout their supply chains.

Process Steps for Traceability with Hyperledger Fabric

1. Source Identification and Blockchain Registration

   • Register Raw Material Source: Each mine is recorded as a digital asset with location and material data.
   • Blockchain-Based Authentication: Raw material data is secured with certificates and ESG documentation.

2. Supplier Selection and Contract Recording

   • Verify Suppliers: All supplier profiles include ESG data and certifications.
   • Smart Contracts: Automatically monitor contract details and compliance requirements.

3. Digital Traceability and Transaction History

   • Asset Tracking: Raw materials are tracked through to chip production.
   • Tokenization: Raw materials and intermediate products are represented as digital tokens.

4. Transport and Logistics Management

   • Record Transport Movements: Real-time documentation of location changes.
   • Certificates and TARIC Codes: Relevant documents are blockchain-based.

5. Processing Stage and Quality Control

   • Document Production Steps: Each processing stage is recorded.
   • Quality Reports: Certificates ensure the quality of semiconductors.

6. Finished Product and Inventory Tracking

   • Create Product IDs: Finished AI chips are assigned IDs that include their full history.
   • Inventory Tracking: Stock levels are updated in real-time.

7. Sales and Customer Delivery

   • Customer Access: Customers can view the product history via a blockchain ID.
   • Smart Contracts for Orders: All delivery conditions and histories are accessible.

8. Reporting and Compliance Monitoring

   • Automated Reporting: ESG and compliance reports are generated in real-time.
   • Regulatory Oversight: Continuous monitoring of standards like REACH and RoHS.

Key Raw Materials for AI Chip Production

• High-Purity Silicon

  • Use: Foundation for semiconductor wafers.
  • Sources: China, USA, Brazil, Norway.

• Copper

  • Use: Conductive material within AI chips.
  • Sources: Chile, Peru, Russia, Zambia.

• Silicon Carbide (SiC)

  • Use: High-performance applications in AI and GPU systems.
  • Sources: USA, China, Japan.

• Gallium Arsenide (GaAs)

  • Use: High-frequency applications and 5G technology, essential for AI-enabled communication.
  • Sources: China, Germany, Japan, USA.

• Tantalum

  • Use: Essential in capacitors for semiconductor functionality.
  • Sources: Democratic Republic of Congo, Rwanda, Brazil, Australia.

• Cobalt

  • Use: Alloy component and interconnect material in semiconductors.
  • Sources: Democratic Republic of Congo, Canada, Australia, Russia.

• Neon

  • Use: Used in lasers for lithography processes.
  • Sources: Ukraine, Russia, China.

Key Suppliers and Partners in the Semiconductor Industry

• ASML: Dutch manufacturer of lithography systems, crucial for advanced chip production.
• SK Hynix: Supplies High-Bandwidth Memory (HBM).
• Micron Technology: U.S.-based memory supplier, also providing HBM.
• Sumitomo Metal Mining: Specializes in tantalum and cobalt.
• Air Liquide and Linde: Suppliers of high-purity gases like neon.

Industries and Applications of AI Chips

• Automotive: Autonomous driving systems.
• Telecommunications: Optimization of 5G networks.
• Data Centers: GPUs for AI training models.
• Industrial Automation: Control systems.
• Medical Technology: Diagnostic and imaging systems.
• Energy Sector: SiC-based solutions for renewable energy.

Benefits of Digital Supply Chain Management with Adey ERP and BSM

With Adey ERP, BSM, and Hyperledger Fabric, companies can make their supply chains future-proof and ESG-compliant.

Recommendation:
If you want to optimize your supply chain and enhance transparency, consider adopting these advanced digital solutions.

Contact us to take your supply chain to the next level!