IIM Indore Develops AI Framework To Safeguard Semiconductor Supply Chains From Wars, Cyberattacks And Geopolitical Disruptions; Study Identifies Safer Logistics Routes

Indore, Madhya Pradesh: An artificial intelligence-driven framework has been created to safeguard semiconductor supply chains from disruptions caused by wars, cyberattacks and geopolitical uncertainties. Developed by Prof Tanmoy Kundu of IIM Indore, the framework combines machine learning, generative artificial intelligence and mathematical optimization.

Semiconductor chips are crucial for various devices, but their global supply chains are vulnerable to disruptions at multiple points. The study examines these risks and proposes a coordinated approach to identify resilient logistics hubs and transportation routes. Machine learning evaluates conflict-related risks using historical data and various indicators.

Generative AI generates potential scenarios, while the optimisation model identifies the safest hub locations and routes. The framework is applied to Asian semiconductor facilities, focusing on Taiwan, a major integrated circuit production center. The study reveals that longer disruptions have a more significant impact, emphasizing the need to prepare for prolonged interruptions.

Businesses can use the framework for risk assessment, route selection and contingency planning, while policymakers can identify infrastructure vulnerabilities and guide resilience investments. The framework demonstrates how AI and mathematical optimization can enhance semiconductor supply chain resilience against interconnected global disruptions.