In 2011, ERAI reported a record 1,000 counterfeit incidents covering millions of parts. The growing threat of counterfeit electronic parts continues to plague the worlds Military, Aerospace, Defense and high tech electronics manufacturing communities prompting another significant "game changer".
In early 2011 US Senators Levin and McCain announced a Senate Armed Service Committee investigation into counterfeit electronic parts and the risks these parts pose to the Department of Defense supply chain. On November 8, 2011, the Committee held its first hearing in Washington, DC during which Senator Levin promised a swift response. Testimony during this hearing revealed the results from a congressional probe, which found at least 1,800 cases of counterfeit electronics in US weapons systems covering more than 1 million suspect parts. Approximately 70 percent were traced to Chinese firms. Panel members also testified that counterfeiting costs the semiconductor industry an estimated $7.5 billion a year in lost revenue and about 11,000 US jobs alone. On November 29, 2011, the US Senate unanimously approved an amendment to the National Defense Authorization Act for Fiscal Year 2012. The legislation is supported by the bipartisan Combating Military Counterfeits Act which will ensure that increased penalties will be imposed against individuals who know that the counterfeit product they sell is intended for use by the military or is identified as a military device. President Obama signed the Defense Bill on December 31, 2011. The veil has been fully lifted on counterfeit electronics across the globe.
The focus of the 2012 ERAI Executive Conference will be the imminent and widespread changes all sectors of the supply chain should expect as a result of the language contained in H.R.1540: National Defense Authorization Act for Fiscal Year 2012 (Sec. 818. Detection and Avoidance of Counterfeit Electronic Parts). ERAI, IHS, and industry experts will lead attendees through keynote sessions, workshops, and panel discussion on the most pressing issues facing the electronics value chain, such as:
- Systems and methods to detect, analyze, mitigate, and communicate counterfeits
- Processes to abolish counterfeit part proliferation
- The term “counterfeit” as it is currently defined
- New personnel training requirements
- Sourcing and procurement
- Obsolescence, compliance and counterfeit risks.
- Component identification methods to meet design, performance, compliance and cost criteria
- Component pricing forecasts, analysis, and benchmarking capabilities
- Health status and outlook of the overall supply and demand for electronic components
- Supply chain traceability (transparency)
- Identifying “trusted sources”
- Debarring sources who have failed to exercise due diligence
- Supplier expectations for detecting and avoiding the purchase, use or inclusion of counterfeit parts (part inspection & test)
- Financial obligations when there is an escape
- Material control (product confiscation, trafficing)
- Systems management & corrective actions
- New reporting requirements
Attendees should expect a unique, up close and personal, hands-on learning opportunity. You will leave with a thorough understanding of the coming changes and an actionable “to do” list ensuring your organization not only can meet but can exceed these new market demands.
Our commitment has never been stronger as we brace for what we believe will be a pivotal year for all of us.