If you are a car manufacturer dealing with chip shortages that halt production lines — this project developed a secure demand signal system that reduces the bullwhip effect. This ensures you get the components you need without over-ordering and facing inventory write-offs.
AI-Driven Demand Forecasting to Prevent Semiconductor Shortages and Inventory Waste
Imagine a group of competitors who all want to know the true market demand for chips but don't want to reveal their secret sales numbers to each other. This system lets them share encrypted data that stays private, while an AI calculates the overall trend. It's like a blind voting system that tells everyone the result without showing who voted for what, stopping the panic-buying that leads to shortages.
What needed solving
The semiconductor industry suffers from the 'bullwhip effect,' where small changes in consumer demand cause massive swings in production. This leads to costly inventory write-offs or severe chip shortages that stop entire industries.
What was built
A secure data gathering system using Multi-Party Computation and an AI-driven breakdown tool based on semiconductor industry ontologies. They also developed the Ontology Development Tool (OnDeT) and a consensus tool for terminology.
Who needs this
Who can put this to work
If you are a smartphone brand dealing with excessive inventory and revenue loss during market shifts — this project developed AI-based demand breakdown tools. These tools provide high-quality, reliable data to align your production with actual market needs.
If you are a PLC manufacturer dealing with unpredictable supply chains — this project developed a semantic web-based digital reference structure. This allows you to map your demand onto industry-standard ontologies for better forecasting accuracy.
Quick answers
What is the cost or price of implementing this solution?
Based on available project data, specific pricing or implementation costs are not disclosed.
Is this solution ready for industrial scale?
The project is an Innovation Action involving 9 industry partners, including Infineon, indicating it is being developed for industrial-scale application within the semiconductor supply chain.
How is the IP and licensing handled?
Based on available project data, the specific licensing terms are not mentioned, though it is a collaborative effort among 15 partners.
How does this integrate with existing data systems?
It uses Semantic Web technologies and ontologies to map data, alongside a Multi-Party Computation (MPC) survey for secure data gathering.
What is the timeline for deployment?
The project period runs from 2023-12-01 to 2026-11-30, suggesting the full solution will be finalized by late 2026.
Who built it
The consortium is heavily industry-weighted with a 60% industry ratio (9 companies), led by a major global player, Infineon Technologies AG. With 15 partners across 6 European countries, the group balances deep corporate expertise with 4 universities and 1 research center, ensuring the AI and MPC technologies are grounded in real-world semiconductor supply chain requirements.
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