A Blockchain Solution to Counterfeiting in the Semiconductor Supply Chain

Counterfeiting in the semiconductor industry has emerged as a critical concern, leading to annual losses exceeding 7.5 billion USD, according to the Semiconductor Industry Association (SIA). Existing solutions don’t address the complexities of real-world supply chain scenarios, giving rise to subpar and hazardous counterfeit products. This paper proposes an innovative blockchain-based Business-to-Business (B2B) system designed to tackle the challenges associated with counterfeit detection in the semiconductor industry. The primary objective is to develop a tamper-proof system that not only accurately identifies counterfeit products, but also pinpoints malicious stakeholders within the semiconductor supply chain. The paper aims to study the transaction process between any two entities in the supply chain which also includes the delivery entity with a focus on practical real-world scenarios often overlooked by existing literature. By doing so, the system addresses common challenges arising from illegitimate transfers, party disputes, and other real-world situations. The research presented provides an algorithmic representation of blockchain applications. It also offers details from practical implementation and testing on Ethereum as well as Hyperledger Fabric, along with an in-depth comparison to assess their respective strengths, weaknesses, and resources used. This enables the solution to be directly used in the industry for anti-counterfeiting, automation, and security; paving the way for a more resilient and secure semiconductor supply chain.