This is going to be a long drawn out process and a very difficult one to end. It is a shame that we are going to have to go to extremes to make sure we can prevent any serious damage. It would appear that these companies are going to have to get very strict on how they control their employees access to data and any removal procedures.
I don't think the US can afford to abandon trade with China or take any strict measures which will hurt the US-China relationship. I am in the favor of a diplomatic solution here which focuses on pointing out the benefits that China itself will have once they implement IP rights management and control counterfeiting.
This is a very serious problem and CHINA is the head of it. CHINA is controlling all the Contract Manufacturing, Celestica, Foxccon, Flextronics, etc. what do you expect.
The biggest question to Rayheron, L3 and Lockheed Martin is what CM's are you using to build your assemblies? The US Government has to start addressing the problem.
@clairvoyant. The answer is yes. Counterfeiters are equal-opportunity suppliers, they don't discriminate when it comes to end markets. Medical is just as vulnerable as military, automotive, communications, etc. The issue with military is that the programs are funded by the government and there are geo-political issues associated with the sourcing of counterfeits from China. Also, the military buys a lot of replacement parts for ancient equipment and the only place you can find these parts is often through non-franchised independent distributors and brokers. So Congressional attention is focused there. The best defense for medical equipment companies is a systematic inspection and testing regime for all parts purchased through non-franchised distributors.
This is a serious issue where military products are meant to be highly reliable. Are healthcare electronics being affected by counterfeit components as well?
Diplomatic solution will never happen, but now what my concern is how are we going to get out of china. They already have a good skill set and may try and start ruling over other companies.
The Senate Armed Services Committee found counterfeit parts -- usually from China -- on at least seven aircraft, including theLockheed Martin Corp. (LMT)C-130J transport plane, Boeing P-8A Poseidon maritime patrol and L-3 27J Spartan transport.
Though there have been no accidents due to te counterfeit parts, so far, there is huge potential for disaster here.
With the massive trade between China and USA this is a difficult situation to address diplomatically but something definitely needs to happen. I guess the USA could stop buying Chinese goods until China respects IP but I am not sure the USA public could stomach the increased costs.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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