Rise in counterfeit semiconductors set to impact suppliers

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US government clampdown will affect international supply chain

The semiconductor supply chain is awash with counterfeit parts, with US counterfeit regulations expected to hurt suppliers through the world.

According to IHS iSuppli figures, the past five years have seen a staggering rise in the number of counterfeit parts which have made their way into supply chains worldwide.

This impacts on a variety applications, from consumer electronics and wireless communications products to automotive and aerospace applications.

The US reported the majority of knock-off goods.  The UK accounts for only a very small proportion.

In response, President Obama signed the National Defense Authorization Act (NDAA) at the end of last year which imposed stiff guidelines and even stiffer potential penalties for counterfeit semiconductor goods supplied for government and military use.

Rory King, director, supply chain product marketing at IHS, said that the impact of the NDAA would have an effect further along the supply chain than just the US.

“The answer to the question of whether the NDAA counterfeit regulations will impact companies outside the U.S. is yes,” King noted. “International companies participate extensively in supplying to the DoD, with the Middle East accounting for the largest portion.”

“There are thousands and thousands of suppliers all over the world that are impacted by NDAA through flow-down. These companies are receiving inquiries on counterfeit avoidance and need to know how to understand and accommodate the issues related to fake parts and compliance with NDAA,” he said.

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