The surge of counterfeit electronic parts into the manufacturing supply chain costs the U.S. government and its contractors billions of dollars each year.
But the problem is not just limited to those who supply government agencies.
Recent reports show that consumer and industrial businesses are losing approximately $250 billion each year because of counterfeit components.
One report notes the automotive industry alone lost $3 billion in sales, while another shows that the semiconductor industry takes a $75 billion annual hit.
In addition, these counterfeit parts frequently create the potential for product malfunction, leading to personal injury and even death—a situation that has created unnecessary danger for military and everyday consumers, plus immense new levels of liability and risk for manufacturers in a wide range of industries.
For more, read "The 'Ticking Time Bomb' of Counterfeit Electronic Parts" in sister publication IndustryWeek.