SAN FRANCISCO—U.S. defense representatives are set to update rules governing the acquisition of electronic components by the military Wednesday (Oct. 3) in an effort to thwart an epidemic of counterfeit parts which has continued at an unprecedented pace thus far in 2012, according to market research firm IHS iSuppli.
Reported incidents of counterfeit electronic parts have increased slightly from the record highs achieved last year, IHS said. The number of reported incidents this year through August has average 107.3 per month, up from 107.1 last year, IHS said.
On a sequential 12-month basis, a total of 1,336 separate verified counterfeit-part incidents have been made for transactions involving a minimum of 834,079 purchased parts, according to IHS. The figures are considered conservative because purchased parts reflect only a subset of all reported incidents, the firm said.
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The updates to the U.S. Department of Defense (DoD) regulations are part of measures intended to regulate the detection and avoidance of counterfeit electronic parts as part of the National Defense Authorization Act of 2012, IHS said. Among other changes, the updates seek to improve systems for the detection and avoidance of counterfeit parts at all tiers in the supply chain, IHS said.
The new rules also shift the
burden of costs associated with rework or corrective action due to
counterfeit parts back to defense contractors, according to IHS. They
specifically spell out new requirements for analyzing, assessing and acting on reports of counterfeit electronic parts and suspected counterfeits, the firm said.