Chip shortage is a global phenomenon that might be a gateway for the increased demand for counterfeit products to take charge in the market.
Industry analysts are skeptical about the ongoing global chip shortage. They believe that the current situation would be the perfect chance for fraudsters to emerge, and introduce counterfeit semiconductors within the market.
Amidst the pandemic, more and more products became more in-demand. Items such as face masks, sanitizing alcohols, and even vaccine passports are essential items that people actively seek.
As a result, there is an extended opportunity for fraud sellers to make easy money by selling counterfeit items.
With the issue on hand, it is no surprise that numerous industry experts are facing the global chip shortage problem with a certain sense of anxiety. With the rising trend of counterfeit products, it would not be too long before the market becomes filled with a premium copy of authentic products, posing substantial safety risks for everyone.
COVID-19: The Beginning of Chip Shortage
Ever since COVID-19 took a toll on the world, electronic device creators suddenly felt the pressure of producing supplies to the condescending demand of their consumers.
With the heightened need for PCs, tablets, laptops, and smartphones, companies and individuals felt the lack of supply. With this, manufacturers began to source vast amounts of semiconductors -- the small component usually referred to as the "brain" of an electronic gadget.
However, semiconductors suddenly became hard to come by. Foundries are left unable to produce the required number of chips to meet their consumers' demands.
Because of the absence of enough supply, a worldwide phenomenon is now taking place. Chip shortage means that it would be harder for manufacturers to create enough products for their customers. Items such as home appliances to gadgets all require a specific chip to make them work.
Alternative Ways - Fraudsters
Due to the uncompensated demand, suppliers are now pressured to look for alternative ways to produce the required products.
Companies could either stock up on chips or close down their production lines. But when push comes to shove, some may resort to using counterfeit products from fraudster suppliers.
ZDNet mentioned that, according to Diganta Das, a counterfeit electronics researcher at CALCE, the pressure could lead to incorrect choices. If next week, a company needs 5,000 parts, or else their business will shut down, they will be forced to put their guard down.
Rules won't mean anything if a company has to choose between keeping its business alive or not -- verifying the vendor, and test processes won't be the top priority. Production will be, and it is going to be a huge problem.
What's worse is that the ones at risk are not huge companies. Instead, smaller businesses are more prone to resort to purchasing fake components to save their source of income. The threats will spread in a massive chunk of sectors that currently rely on semiconductors for all of their productions.
This article is owned by Tech Times
Written by Fran Sanders