Despite the creation of the original white papers regarding Blockchain protocols in the mid-1990s, the concept of integrating blockchain-based systems into an organization’s supply chain is still seen as an emerging technology.  Blockchain technology can help semiconductor companies “record price, date, location, quality, certification, and other relevant information (Mirchandani & Kashyap, 2021),” yet questions remain on whether implementing blockchain technology into the supply chain is worth the return on investment when existing technologies such as centralized databases and cloud computing services are proving to be cost-effective solutions. This presentation will define blockchain technology, explore the potential of blockchain technology uses within the semiconductor industry supply chain, and within the context of the Qualcomm fabless production model provide recommendations on how Qualcomm might benefit from the use of blockchain technology in the future.

The primary challenge facing the adoption of blockchain technologies by supply chain partners is whether investing time and money will actually provide value along the supply chain. To address this challenge an organization needs a clear, easily understood business case for adopting blockchain technology that demonstrates the value in its implementation. The “Blockchain in Supply Chain – Roundtable Report” describes several benefits of the use of blockchain technologies. These benefits would include managing and controlling products, specific location data, and proof of delivery (Meyer & Meyer, 2019, p. 17). In addition, smart contracts which are code within the blockchain that executes an agreement (Levi & Lipton, 2018) could produce operational efficiencies that might reduce administrative, overhead, and dispute resolution costs, as well as improve reliability and accelerate supply chain processes (Meyer & Meyer, 2019, p. 19). 

To further address the challenges associated with implementing blockchain technologies within the supply chain, semiconductor companies like Qualcomm should study how industry-wide blockchain standards might be incorporated to the benefit of the entire industry.  These blockchain standards should be coordinated with the emerging use of IoT systems, RFID technology, and 5G/6G connectivity which are driving forces behind the Industry 4.0 vision (Leng et al., 2021) of the future. Although existing centralized, cloud-based supply chain management systems may currently be effective and efficient ways to manage the supply chain across the participating partners, organizations that choose to invest in innovations provided by using blockchain technologies that increase communication and coordination could gain a competitive advantage over the competition that could drive market growth for years to come.