AI Framework Protects Semiconductor Supply Chains From Geopolitical Risk

Researchers at Indian Institute of Management Indore have published a groundbreaking study in IEEE Transactions on Engineering Management that proposes an AI-driven framework to strengthen semiconductor supply chain resilience against wars, cyberattacks, and geopolitical tensions. The framework integrates machine learning, generative AI, and mathematical optimization to help businesses identify the most secure logistics hubs and transportation routes while accounting for multiple interconnected risks rather than assessing threats in isolation. The research is particularly timely given semiconductor supply chain vulnerabilities demonstrated during the Covid-19 pandemic and heightened by ongoing geopolitical conflicts.

The study focuses on critical Asian manufacturing hubs, especially Taiwan which hosts major producers like TSMC, UMC, and Micron. By analyzing conflict-related indicators (including population size, proximity to borders, and cybersecurity vulnerabilities), the framework generates realistic disruption scenarios and recommends routes that maintain supply coverage while minimizing risk exposure. For supply chain professionals, this research offers a strategic tool for contingency planning and sourcing decisions.

The framework demonstrates that geographically convenient ports may not provide optimal reliability when geopolitical and cybersecurity factors are weighted together. Organizations can leverage this approach for risk assessment, route selection, and long-term infrastructure planning, while policymakers can use insights to guide resilience investments in critical semiconductor production regions.