Trustworthy Smart Fabs via Professional Proxies: Scaling Safe and Sustainable by Design (SSbD) through Industrial Data Spaces

Researchers propose a zero-trust framework using AI-powered 'Professional Proxies' and hardware-isolated trust zones to help semiconductor manufacturers comply with EU sustainability regulations while protecting proprietary data. The approach enables factories to generate cryptographically signed compliance tokens without exposing manufacturing secrets, addressing a growing governance bottleneck across advanced chip production.

The semiconductor industry faces an unprecedented regulatory squeeze. The EU's 2026 Safe and Sustainable by Design framework, coupled with the Corporate Sustainability Due Diligence Directive and Carbon Border Adjustment Mechanism, demands unprecedented transparency from chip manufacturers. These overlapping mandates create a paradox: facilities must prove environmental and ethical compliance to regulators and stakeholders, yet sharing detailed production data risks exposing trade secrets that define competitive advantage.

This paper tackles that tension through autonomous governance agents—role-based AI proxies operating within hardware-rooted Trusted Execution Environments. Rather than manually compiling compliance reports or sharing raw factory data, the system executes virtual metrology and federated machine learning inside isolated hardware zones, then exports only cryptographically signed tokens proving compliance. The architecture leverages International Data Spaces connectors to enable cross-border regulatory coordination without data exposure.

For semiconductor executives and investors, this represents a critical emerging need. Chip fabs represent billions in capital-intensive infrastructure, and non-compliance with EU directives carries both regulatory penalties and supply-chain exclusion risks. The framework's ability to automate compliance while preserving operational secrecy could become essential infrastructure for advanced node manufacturers serving European customers.

The approach reflects broader trends toward decentralized governance and cryptographic proof systems in regulated industries. Success here could establish templates for pharmaceutical manufacturing, automotive production, and other capital-intensive sectors facing similar regulatory pressures. Investors should monitor whether this research attracts funding from semiconductor consortia or industrial software vendors seeking compliance solutions.

• →AI-powered 'Professional Proxies' automate compliance reporting for semiconductor fabs while preserving manufacturing secrets through hardware-isolated trust zones.
• →The framework addresses the EU's 2026 sustainability mandates by generating cryptographically signed compliance tokens instead of exposing proprietary process data.
• →Federated machine learning and virtual metrology execute inside Trusted Execution Environments, enabling verifiable compliance without centralized data sharing.
• →The solution targets a critical bottleneck: manual corporate reporting cannot scale to meet converging EU directives on sustainability, due diligence, and carbon adjustment.
• →International Data Spaces connectors enable cross-border regulatory coordination, positioning the framework as infrastructure for Industry 5.0 ecosystems.