U.S. counterfeit regulations could affect global tech supply chain

The proliferation of counterfeit goods in the tech market has been growing, causing the U.S. Department of Defense to take stricter actions.
Written by Rachel King, Contributor

New regulations on counterfeit goods from the U.S. Department of Defense could have significant ramifications for the international tech supply chain, among others.

A new report from IHS posits that 362 non-U.S. companies worldwide that are supplying the U.S. government could be directly impacted by counterfeit regulations, with many more indirectly affected.

Greg Jaknunas, senior product manager of supply chain solutions at IHS, explained in a report that this will likely happen as defense contractors place requirements on their suppliers, and those rules will ripple down to other suppliers on the food chain.

This could have a severe impact on other global industries as well considering that IHS noted non-U.S.-based suppliers accounted for more than $2 billion worth of items to the U.S. government during the five-year period between 2007 and 2011.

The proliferation of counterfeit goods in the tech market, in particular, has been getting more attention lately. In February, it was reported that the number of reported counterfeit parts have quadrupled since 2009.

Supply chain companies reported 1,363 separate and verified counterfeit-part incidents worldwide in in 2011, most of them being for commercial electronic parts that are widely used in the technology sector.

Furthermore, earlier this month, IHS also published findings that counterfeit semiconductors have seeped through corporations and the military, and that they are a $169 billion risk to the electronics supply chain.


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