It is not only US where counterfeit portable memory chips are sold but all over the world. Memory Chips (especially upgraded ones which are originally 512Mb are sold as 2GB) are sold one third of the price of original 2GB memory Chips. I am almost postive that Asia consumes probably equally or even much more of these counterfeits than USA today!!!
I'm sorry Cliff, but the author did cover what you said elaborating on how the parts make their way into the "official" channels. Yes most of it is grey market, but there are exceptions. Consider also that the semi companies now manufacture in china and distribute to the world from there. What makes you think that a country that puts melamine in baby milk resulting in kidney damage won't add a duds to the mix?
It is not always a matter of money. Sometimes the "gray market" is the only choice if you are supporting designs that require obsolete components when there are issues redesigning the product to use newer parts. I believe the article mentions this in relation to the military and aerospace industries.
I disagree with the tone of this article. It is actually very easy to avoid counterfeit and reused devices. Just buy the devices directly from the supplier or through franchised distributors. The problems come from buying through "gray market" sources to save a little money.