The recent explosions of everyday devices in Lebanon underscore the critical need for a secure and trusted electronics supply chain. With the U.S. heavily dependent on foreign sources for semiconductors and other electronic components, the integrity of the supply chain is a matter of national security.
The Perils of Supply Chain Weaponization
The deadly explosions of pagers and walkie-talkies in Lebanon, which resulted in 37 fatalities and approximately 3,000 injuries, have raised concerns about the potential for “supply chain warfare“. While the exact causes of these explosions remain unclear, the incidents highlight the importance of trust in the supply chain. This trust extends beyond preventing the weaponization of everyday devices to ensuring the security of the end-to-end electronics ecosystem.
Semiconductor Supply and Demand Imbalance
The U.S. currently accounts for only 12% of the world’s semiconductor manufacturing capacity, a significant decrease from 37% in 1990. In contrast, Asia is responsible for 75% of semiconductor production. This imbalance between supply and demand is problematic, given the critical role semiconductors play in powering everyday devices, from computers to washing machines. The complex nature of the electronics supply chain presents numerous opportunities for malicious tampering and the introduction of counterfeit components, making traceability a challenge.
Securing the Electronics Supply Chain
In response to the risks associated with foreign dependence on semiconductors, the bipartisan CHIPS and Science Act was passed in 2022, allocating $52 billion for domestic chip manufacturing and research. This move aims to reduce dependence on foreign sources and enhance the security of the supply chain. However, semiconductors are just one part of the wider electronics ecosystem. Other components, such as printed circuit boards (PCBs), are also critical, and the U.S. currently produces only 4% of the world’s PCBs.
The Path Forward
To ensure the security of products and systems that rely on these components, it’s essential to work with trusted partners and develop mechanisms for enhanced supply chain visibility and traceability. This requires a comprehensive view of the supply chain, from raw materials to finished products, and the use of data analytics for long-term forecasting and inventory planning. The recent debate between Vice President Harris and former President Trump highlighted the importance of strengthening domestic manufacturing and securing the electronics supply chain, a topic that will remain critical regardless of the election outcome.
