Legislation seeks to relax restrictions on tracking fake chips

Legislation seeks to relax restrictions on tracking fake chips

WASHINGTON – Three lawmakers have proposed legislation aimedat stemming the flow of counterfeit semiconductors into the U.S., a growingthreat to the nation’s national security and critical infrastructure.

The legislation introduced by Reps. Michael McCaul(R-Texas), Howard McKeon (R-Texas) and William Keating (D-Mass.) seeks toreverse the U.S. Customs and Border Protection’s policy that limits chip makers’access to photographs of trademarks on suspected fake chips. H.R. 6012 wouldagain allow chip makers to examine photographs showing identifying informationon suspect chips to determine their authenticity.

The bill’s sponsors said the legislation is designed to stopthe flow of more than 1 million counterfeit chips into the U.S. thatinvestigators suspect are primarily made in China. More than 2 millioncounterfeit or mislabeled chips entered the U.S. in 2010, the lawmakers said.One technique involves salvaging and repackaging chips from discardedelectronic equipment.

“From brake systems and defibrillators to advanced militaryweapon systems, when a product fails because of a counterfeit chip, the consequencescan be catastrophic,” McKeon said in a statement introducing the legislation. “Thisbill will fundamentally improve our efforts to stop the dangerous flow ofcounterfeit chips onto our shores.”

McKeon is chairman of the House Armed Services Committee.McCaul is chairman of the House Homeland Security Oversight &Investigations subcommittee.

A recent investigation by the Senate Armed Services Committee revealed that fake chips had turned up in several U.S. weapons,including the Navy’s SH-60B Seahawk helicopter and the P8-A antisubmarinewarfare aircraft.

Industry groups like the Semiconductor Industry Associationpraised the legislation, calling the spread of counterfeit chips in weapons,networks and medical devices a “ticking time bomb.”

The proposed legislation will initially be considered by theHouse Judiciary Committee since it raises issues about intellectual propertyrights. With lawmakers heading home for vacation later this week and a generalelection looming in the fall, it is unlikely the legislation would make it outof the committee by the end of the current congressional session.

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Ferreting out the fake in the chip supply chain

Chip counterfeiting case exposes defense supply chain flaw

TAG:Counterfeit Chips Fake Chips Legislation China Semiconductors