Everything in electronics is made of components, capacitors, microprocessors, resistors; chips essentially. If one component in a system fails, the device won’t function as intended. For a smartphone or connected IoT gadget, the adverse effect of a component failure caused by counterfeits isn’t of much of the public's concern. But for high-grade electronics controlling high impact devices, like those found in MRI machines, ballistic missiles, low-orbit satellites, or commercial aircrafts, with virtually no margin for error, counterfeits can wreak havoc.
The damages incurred by counterfeit components is estimated at $580 billion annually, including instances of programmable components laced with malicious malware - hardware cyber attacks, which can cost a mere $200 to execute. Today, the overwhelming majority of the components are assembled without any prior authentication testing, paving the way to a lucrative $30 billion fraudulent counterfeit components industry.
