Electronics Supply Chain Challenges for U.S. Companies

Electronics Supply Chain Challenges

Supply Chain Challenges in a Changing Global Market

COVID-19 has introduced additional electronics supply chain challenges.  This is especially the case for the electronics industry.  As a result companies will have to:

  • Reconsider product designs. 
  • Develop new procurement strategies.
  • Provide effective risk management for data security.
  • Further guard against counterfeit parts.

Electronic products require a large volume of components.  These components are being produced all over the world.  In the last forty years, manufacturing has been established where labor is the cheapest.  China is a country that has exploited this opportunity to create immense economic growth.  Unfortunately, it has often done this by using forced labor and creating environmental hazards.  It has also conducted cybercrime to steal intellectual materials to further its growth. 

In light of China’s actions during this crisis the U.S., E.U., and the United Kingdom are invoking tariffs and bans.  As a result many products sectors that China has dominated will be in short supply.  Semiconductors and lithium ion batteries are products of special concern.  Legislation in the United States, such as the CHIPS for America Act are attempting to strengthen and secure a stable domestic supply line.

Supply Chain Cyber Crime

The supply chain has always been a vulnerability for information security.  It is often difficult to identify and mitigate risks when multiple organizations are working together.  Because of this, counterfeit products, tampering, theft, insertion of malicious software and hardware, can result.  These incidents have historically increased during times of component shortages.

As the National Institute of Science and Technology (NIST) has consistently reported, organizations are at increased risk of compromise through their supply lines.  These attacks are often carried out by nation states such as China, Russia, and North Korea. 

Quality and the Supply Chain

Prompt delivery of quality product is threatened by an inconsistent supply chain.  Risk assessments of a new design’s ability to be manufactured should be taken into consideration.  Enhanced product quality testing should be planned for to mitigate the release of product with counterfeit components. 

CVG Strategy Solutions for Electronics Supply Chain Challenges

CVG Strategy offers quality and cybersecurity solutions to businesses of all sizes to help guide you through electronics supply chain challenges.  We provide consulting in ISO 9001 and AS9100D quality management systems.  We also specialize in helping organizations establish effective Information Security Management Systems (ISMS) to protect your vital information.

Kevin Gholston

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