A Study on Block Chain - Enabled Supply Chain Financing Semi Conductor Industry at Samsung Electronics

Abstract

This study, titled "A Study on Block Chain - Enabled Supply Chain Financing Semi Conducter Industry at Samsung Electronics," evaluates the integration of smart-contract automated invoices, real-time inventory telemetry, and multi-tier credit rating transfers in semiconductor manufacturing supply chains. Supply Chain Financing (SCF) allows multi-tier SME suppliers to access early capital based on the anchor buyers (Samsung Electronics) premium credit rating. A five-year project lifecycle (2021-2025) of a blockchain-enabled SCF platform deployment is analyzed using standard capital budgeting metrics: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative analysis reveals that Tier-1 and Tier-2 suppliers constitute 75% of financed invoices. Deploying automated smart contract invoice checks reduces approval latency to 2 days, while lowering average borrowing rates for Tier-3 suppliers to 6.8% and supporting 1,800 active SME vendors by 2025. The financial model yields a positive NPV of 284.5 Crores and an IRR of 38.6%, far exceeding the 10% discount hurdle rate. The study concludes that deploying enterprise blockchain-led SCF solutions is highly viable, enabling semiconductor leaders to optimize supplier relationships, secure material inputs, and lower supply chain financing costs. Keywords: Blockchain Technology, Supply Chain Financing (SCF), Semiconductor Industry, Smart Contracts, Latency, Capital Budgeting, Financial Feasibility.