Counterfeit Electronics:  An Increasing Problem in Automation Industries

Keywords: Counterfeit Electronics, Process Automation, Electronic Components, Suspect Electronics.

Process automation suppliers and end users alike need to be aware that counterfeit integrated circuits (ICs) and other electronic components have been found in the process automation supply chain. ARC Advisory Group research has concluded that almost every product or automation system with brand recognition could potentially include counterfeit ICs and electronics. Concerned that their products are at risk for counterfeiting, many branded automation manufacturers are moving forward with efforts to provide product authentication throughout their supply chains, rather than waiting for the inevitable legal mandates.

Counterfeit products are penetrating supply chains deeper than ever be-fore, posing risks to an automation supplier's intellectual property (IP), reputation and brand, warranties and returns; all which can ultimately affect their bottom lines. In some cases, the health and safety of end users can be compromised. Companies that rely solely on IP law protection find that this is not adequate to prevent counterfeit products from penetrating their supply chains.

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