Subscribe to our free, weekly email newsletter!



A counterfeit semiconductor is a “ticking time bomb”

By Patrick Burnson, Executive Editor
November 08, 2011

One of the bright spots in recent export activity has been the surge in demand for U.S.-manufactured microchips. But there’s a sinister threat lurking in the supply chain to disrupt this trend.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that SIA President, Brian Toohey testified on behalf of the industry before the Senate Armed Services Committee to aide in their investigation into counterfeit electronic parts in the Department of Defense (DOD) supply chain.

Counterfeit electronics, and the semiconductors they are built on, are a growing threat to the health and safety of military and civilians alike.  This is especially true as microelectronics are found in an increasing number of mission-critical applications such as lifesaving medical devices, automotive safety systems, airplanes and the tools, systems, and communications equipment that the United States military relies on today.

“The catastrophic failure risk inherently found in counterfeit semiconductors places our citizens and military personnel in unreasonable peril. A counterfeit semiconductor is a ticking time bomb,” said Brian Toohey, president, Semiconductor Industry Association. “What is more, counterfeiters violate American companies’ intellectual property rights and cost American’s jobs. We estimate that counterfeiting costs U.S.-based semiconductor companies more than $7.5 billion each year.”

The presence of counterfeit electronics in the DOD supply chain is a multi-faceted problem which requires a multi-pronged approach with a coordinated effort from both industry and government. There are five actions that the SIA has recommended to the Committee to effectively stem the tide of counterfeit electronics:

*Support and continue partnerships between industry and the DOD and Department of Justice (DOJ) to develop a more robust and effective authentication system;

*Strengthen procurement procedures at DOD for mission-critical components, including purchasing exclusively from authorized distributors;

*Ensure industry’s ability to fully partner with Customs and Border Patrol Officials to stop suspected counterfeits at the border by ending CBP’s redaction policy;

*Aggressively prosecute counterfeit traffickers; and finally,

*Stronger enforcement of intellectual property rights internationally.

Air cargo shippers must surely agree with the final statement made by Toohey:

“Our industry takes this threat very seriously and we are committed to doing everything within our power to work with the DOD and other government agencies to stop counterfeits from entering the U.S. and our military and civilian supply chains.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA