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Accelerating the IoT* Digital Economy With Trusted Value 

Chains Driven by Collaboration with International Allies

Leveraging US & EU CHIPS Acts and new production capacity worldwide for supply chain 

digitalization initiatives that strengthen resiliency and trust and fuel economic growth.

Tom Katsioulas

Founder & CEO

tomkat@archon-ds.com

Cell: 408 674-8232 

*Internet of Things

Version 4.6 - January 2023
© 2023 Archon Design Solutions, Inc. All Rights Reserved

Strengthening National and Economic Security

• Can we create a resilient electronics supply chain that fuels growth of IoT digital economy?

• Can we ensure chips are trusted, secure, traceable and enable trillions of economic value?

• Can we use a small investment from CHIPS Acts to speed adoption with international allies?

• The USG can leverage the US & EU CHIPS Acts to lead global collaboration for supply chain security

• Orchestrate ecosystem strategy for digitalization and traceability of the electronics value chain

• Drive multi stakeholder initiatives on supply chain provenance from chip design & manufacturing

• The DOC & TTC can lead global ecosystem orchestration since no one enterprise can do this alone

• Support low-cost pilot programs to prove value of supply chain digitalization for economic growth

• Expand collaboration across values chain with international allies and standards organizations

• Speed adoption across value chains programs like Digital Product Passport and Cyber Trust Mark

• Support creation of a “digital paper trail” for chips and IoT electronics assets and their data

• Fuel economic growth by incentivizing IoT digital marketplaces of data producers and consumers

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Global Electronics and IoT Landscape

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• IoT will explode in ways that are transformative for our environment and new digital economies*

• 100B+ devices 500ZB+ of data by 2030 will fuel IoT services and AI applications

• Potential value for the global economy will be from $5.5 to $12.6 trillion by 2030

• Economic growth is hindered by supply chain disaggregation, geopolitics and cybersecurity risks

• Huge barriers on value chain fragmentation, unregulated distribution channels, organization silos

• No one company can address supply chain security and monetization across IoT value chains

• A trusted digital thread from chips to IoT edge is critical for national security and economic growth

• Digital flow of data that connects business processes, products, and assets across value chains

• Drives operating efficiency, supply chain resilience & security, risk management and business growth

• Data is the “new oil” requiring infrastructure and standards to pump it out and extract value

• Chip manufacturing produces huge volumes of data used to improve quality, reliability, assurance

• Trusted traceability of assets & data will enable digital marketplaces and new revenue streams

*Sources: McKinsey & Company (IoT), GlobalDots, ABI Research, Semiconductor Digest, McKinsey & Co (Security)
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Supply Chain Provenance Starts From Trusted Chips

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$112T

Global GDP IoT Marketplaces

$2.2T

Electronics 1,000s of companies

$600B

Semiconductors 100s of companies

$96B

Found Only 5 at scale

Sources: SEMI, EY, GF Excludes foundries < $2B

• ~71 new fabs are being built worldwide in 2022-2024 driven by >$600 Billion* in government incentives

• Over 80% of the global fab capacity that fuels IoT is controlled by a handful of allied nations (incl. Taiwan)

• Investment in traceability infrastructure is small compared to many chips producing over a fab lifecycle

Short geopolitical market window to start a digital thread from chip design and manufacturing

* Over $2 trillion with private investments
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Examples - Trusted Digital Thread Use Cases and Benefits

• Chip suppliers trace and authenticate ICs in the field, remotely configure SKUs to enable

pay-as-you-go business models, analyze chip data and offer hardware/software updates

• Foundries reduce field failures by collecting test data across the value chain to increase

reliability, and save chip buyers’ resources for validating that chips function as intended

• Device makers license test data from suppliers instead of relying on data sheets, thus

saving time to design systems and shorten time to market with digital twin prototypes

• System OEMs securely configure devices to offer IoT services remotely and use trusted

digital threads to pass data to their suppliers that create digital twins of chips & devices

• Fleet Operators analyze trusted data from IoT systems and chips to manage ecosystems,

and develop ML/AI applications for failure prediction, vulnerability management, etc.

• Chip suppliers and System OEMs track and trace allied chips when they power-up inside

enemy weapons and disable them remotely to prevent cybersecurity or physical attacks

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Digitalization Across the Electronics and IoT Value Chain 

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• Establish a trusted digital thread of provenance and traceability starting from chip design & manufacturing

• Use IoT technology and ML/AI to track, monitor, manage assets across the electronics and IoT value chain

• Incentivize enterprises to digitalize operations* and join digital marketplace of data producers & consumers

*Receivables, workflows, deliverables
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Digital Thread Enables Data Monetization

. Data Producers Data Consumers Monetization

Electronic Design Simulation EDA tools generate data from circuit 

design, optimization and performance.

Product designers, and device makers can 

use this data to improve products

Offer data-driven insights and add-on 

services to EDA simulation tools.

Semiconductor Manufacturing Produce vast amounts of data on quality, 

performance, functionality, integrity, etc.

Chip or equipment suppliers, device 

makers use data to improve design

Fabs license data to consumers who use 

it to increase product differentiation

Supply Chain Procurement Create data for shipping, inventory levels, 

demand forecasting, etc.

Manufacturers, logistics companies, 

retailers can increase forecast accuracy

Sell data access for customers to reduce, 

costs, and enhance customer service.

IoT Device Deployment Generate data related to device 

operation, sensors and environment 

Businesses, researchers, insurance 

companies, use data to offer services.

OEMs get Insights on product value, RMA 

root causes, and predictive maintenance

Electronic Part Lifecyle Generate data related to specifications, 

availability, quality, and environment

Device makers, repair services, and 

environmental sustainability orgs.

Test of recycling data can be licensed to 

designers for eco-friendly organizations

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Incentivize digital marketplaces and business ecosystems to sell “Everything-as-a-service (XaaS)”
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Accelerating Supply Chain Resilience and Economic Value

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• Trusted infrastructure: Facilitate market preference and regulate market access and use of chips & electronics

• Standards Taxonomy: Align SDOs* and national standards strategy for assurance, provenance, and traceability

• Value Chain Economics: Support trusted business ecosystems and marketplaces with traceable transactions

*Standards Development Organizations
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Expanding Digital Thread Global Impact Beyond Borders

Journey of chips though untrusted environments assembled with other chips into electronics and IoT products 

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1 2 3 4 5 6 7 8

China Rear

Earth Metals

S. Korea

Flash Memory

Germany 

Accelerometer

Netherlands 

NFC Controller

Japan Camera, 

LCD Screen

USA Wi-Fi & 

Audio Chips

Taiwan CPU/GPU

Manufacturing

China Final

Assembly & Test

EU Digital Product Passport can have global impact 

as regulation is applied to imported electronics 

parts and may inspire cross border collaboration 

U.S. Cyber Trust Mark can empower businesses, 

governments, and users to make informed 

decisions about IoT device security and privacy

Global interoperability and identifier standards 

will help unify the approach* to supply chain 

transparency, traceability and monetization

*https://www.cbp.gov/newsroom/national-media-release/cbp-launches-global-business-identifier-pilot-increase-supply-chain

*Source: WBCSD and BCG
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Recommendations to Accelerate Adoption

Physical Supply Chain 

Traceability

&

• Promote use of standards for

supply chain logistics, assurance

provenance, and traceability

• Support Root of Trust based

Architectures for Provenance

& Traceability of chips assets

• Use IoT Technology to Track

asset chain of custody (with

trusted certs, blockchain, AI)

Trusted Digitalization 

Solutions

• Create infrastructure for digital

thread toward supply chain risk

management & monetization

• Promote digitalization of

enterprise receivables, workflows,

deliverables across value chains

• Incentivize digital marketplace

enablement of data producers,

consumers, and IoT services.

Policy and Market 

Behavior

• Drive demand tied to assurance to

increase chip production capacity

and incentives for market access

• Promote orchestrated PPPs* to

reduce risk of supply disruption

and drive XaaS revenue streams

• Facilitate creation of digital thread

driven business ecosystems and

platforms for monetization

*Private-Public Partnerships
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Summary - Call to Action

• The USG can leverage the US & EU CHIPS Acts to lead global collaboration for supply chain security

• Orchestrate ecosystem* for digitalization and trusted traceability of the electronics value chain

• Drive multi stakeholder initiatives on supply chain provenance starting in chip manufacturing

• The DOC & TTC should lead allied nation orchestration and support for collaboration on standards

• Lead by controlling root of trust based digital thread for market preference and chip access/use

• Promote collaboration on trusted traceability with international allies and standards organizations

• Speed adoption across value chains programs like Digital Product Passport and Cyber Trust Mark

• Support creation of a “digital paper trail” for chips and IoT electronics assets and their data

• Fuel economic growth by incentivizing digital marketplaces and XaaS business ecosystems

*Pilot project was proven to be viable with GSA Trusted IoT Ecosystem Security (TIES)

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Create a resilient global supply chain with allied nations that will drive trillions in IoT economic value