The Cost of Counterfeit Semiconductors to the Electronics Industry

Counterfeit semiconductors not only constitute a danger to the entire worldwide electronics industry, they also add cost to every level of the industry involved. Most semiconductor and electronics equipment manufacturers are working to overcome the counterfeit problem, but the costs are high, and the entire industry must pay. There are some counterfeit identification and mitigation solutions in place, but none can provide 100% assurance because counterfeiters are continually improving their own technologies in order to “keep up.” Costs for these solutions are added to other hidden costs that cause uncertainties throughout the industry. In this paper we will look at the costs incurred throughout the electronics industry because of counterfeit
components and demonstrate what values can and cannot be measured.