The Problems With The Fight Against Electronics Counterfeiting

by Craig Hodgson, on August 11, 2016

Screen_Shot_2016-08-09_at_11.45.20_AM.pngAs technology improves, the electronics industry finds itself facing increasing levels of counterfeiting. According to the Semiconductor Industry Association, the proliferation of fake semiconductors costs the industry as much as $7.5 billion per year in lost revenue.

The solution is traceability. Unique codes and labels make it possible for manufacturers to determine where each product originated, down the the very machine where it was made. But standards for tracking and tracing can vary, and in many cases manufacturers create labels based on consumer demand, rather than government action. This can lead to inefficiency and confusion.

"Counterfeiting efforts are expected to become more complex over time, and manufacturers will need to keep up."

One problem, according to ECN, is that technological advancement has led to smaller electronic components. It is physically more difficult to affix them with useful labels, which can lead to errors.

In addition, it isn't enough to simply identify as many instances of counterfeiting as possible. As pointed out by TTI MarketEYE, there is always a risk of suspected counterfeiting being overreported along the supply chain - an overcorrection in response to a very real problem. This could result in genuine components being flagged due to a mistake.

It's important for the industry to be able to rely on a labeling system that addresses these issues, while still serving their needs. Counterfeiting efforts are expected to become more complex over time, and manufacturers will need to keep up.

Loftware's Enterprise Labeling Solutions help electronics manufacturers meet consumer-specific requirements and emerging government standards like REACH and RoHS. Our services can also address the pervasive problem of mislabeling and other manual errors by centralizing and automating barcode labeling

For more on this subject and on how Enterprise Labeling can help electronics labeling check out this webinar on electronics counterfeiting.

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