Supply chain managers must take a proactive role in understanding and mitigating risks that threaten the integrity of their products. It’s no longer enough to think, “This product comes from a trusted supplier” or “This isn’t military-grade equipment, so it’s not a target.” Every piece of technology is interconnected, and attackers are increasingly sophisticated in exploiting even the smallest vulnerabilities. A single weak link can jeopardize the entire chain, making vigilance and proactive strategies essential.

Key Steps Supply Chain Managers Should Consider:

1. Source Verification:
   It’s imperative to understand the complete journey of your printed circuit boards (PCBs), from raw materials to final assembly. This involves not just knowing your immediate suppliers but tracing back through the entire supply chain to the source of every component. Implement rigorous verification processes that include supplier audits, documentation reviews, and third-party assessments. Utilize tools and databases that provide insights into supplier reliability and past performance. This thorough approach helps ensure that each component meets security and quality standards.
2. Quality Audits:
   Conduct regular quality audits that go beyond mere compliance checks. These audits should assess potential vulnerabilities in the supply chain, evaluating processes and components for any signs of tampering or deviation from standards. Even minor anomalies could indicate larger issues. Establish a culture of continuous improvement where findings from audits are addressed promptly, and corrective actions are taken. Engaging external experts can also bring fresh perspectives on vulnerabilities that may have been overlooked internally.
3. Onshoring Opportunities:
   Reassess the feasibility of onshoring your PCB procurement. While cost considerations often drive decisions to offshore production, proximity to manufacturing can significantly enhance your control over the integrity of components. Onshoring not only reduces the risk of supply chain disruptions due to geopolitical factors but also enables closer oversight of manufacturing processes, facilitating immediate responses to any quality or security concerns.
4. Collaborate with Industry Peers:
   Security isn’t a competitive advantage—it’s a shared responsibility. Engage with others in your industry to share insights, identify trends, and collectively advocate for stronger supply chain protections. Establishing industry-wide standards for security and quality can raise the bar for everyone and reduce vulnerabilities across the board. Collaborative initiatives, such as joint training programs and information-sharing platforms, can further enhance awareness and preparedness against potential threats.
5. Embrace Technology to Monitor and Protect:
   Utilize advanced technology, such as blockchain, to track and authenticate your supply chain. Blockchain provides an immutable record of transactions, making it difficult for malicious actors to tamper with data. Additionally, invest in IoT devices that can provide real-time monitoring of environmental conditions, ensuring that components are stored and transported under optimal conditions. Leverage AI and machine learning algorithms to analyze data for patterns that might indicate security breaches, allowing for rapid response to emerging threats.

Additional Considerations:

• Implement Risk Assessment Protocols:
  Regularly evaluate and update your risk assessment protocols to reflect new threats and changes in the supply chain landscape. This dynamic approach ensures that your strategies remain relevant and effective in mitigating risks.
• Educate and Train Staff:
  Ensure that all employees, especially those in procurement and supply chain roles, are educated about potential threats and best practices for security. Training sessions can help foster a security-minded culture within the organization, empowering staff to recognize and report vulnerabilities.
• Stay Informed:
  Keep abreast of the latest trends and threats in supply chain security. Subscribe to industry publications, attend relevant conferences, and participate in webinars to ensure that your knowledge remains current and that you can adapt to an evolving risk landscape.

By implementing these strategies, supply chain managers can create a robust framework that not only safeguards their operations but also enhances their overall resilience. In a world where threats are constantly evolving, proactive management is not just beneficial—it’s essential for sustaining trust and maintaining a competitive edge.

PCBs are the backbone of any electronic device, making them an integral part of the supply chain. Despite this, there’s a glaring gap in policy focus, funding and investment to support a reliable and resilient domestic PCB manufacturing industry.

Whether powering the latest medical devices, controlling fighter jets or keeping smartphones in our hands, microelectronics are everywhere, and virtually every industry depends on their availability. As we witnessed during the COVID-19 pandemic, a disruption in the supply chain can cripple industries and daily life, but that’s just scratching the surface of the challenges we face. The recent events in Lebanon, where it’s believed Israel compromised Hezbollah’s supply chain, magnifies the critical importance of having secure electronics supply chains for companies in the United States, regardless of industry.

The CHIPS and Science Act, first passed in 2022, has sparked conversation and support for U.S.-based semiconductor manufacturing capabilities. This investment supports factories, equipment, workforce training and research, yet it still falls short of addressing another critical element that needs attention: printed circuit boards (PCBs).

Rethinking the CHIPS Act: The Real Threats Are Easier Than We Think

PCBs are unique within the electronics supply chain because they are often the only built-to-order component. While most other parts like semiconductors and integrated circuits are commercially available off-the-shelf, PCBs are custom manufactured for each specific application. This “built-to-order” nature makes PCBs particularly vulnerable to exploitation when manufactured in unsecure facilities. It’s possible for PCB functionality to be maliciously modified during an unprotected manufacturing process, and these changes can be almost impossible to detect until they’re weaponized—especially when produced at scale.

The CHIPS Act is undeniably important for securing U.S. dominance in AI and processing power sophistication, but there’s a misconception that security breaches only occur at the highly complex and costly semiconductor level. In reality, it’s also possible to insert vulnerabilities at the PCB level, using simple, off-the-shelf components that blend into the assembly. Stepping back from the exploding electronics, bad actors only need a way to create one short circuit to kill devices or overload a battery to cause a fire. It is not difficult to know what power and ground are when fabricating a PCB regardless of any knowledge of higher-level functional details. In other words, you don’t need to inject compromises into advanced 7nm chips when you can quietly add malicious functionality to a PCB that will pass unnoticed into the supply chain.

Israel demonstrated this approach effectively when they infiltrated electronic supply chains to target Hezbollah. According to news reports in the national media such as Wired Magazine and Popular Mechanics, Israel didn’t go after the most sophisticated chips but rather exploited simpler technology, inserting compromises into an easier-to-penetrate supply chain. This example serves as a stark warning: the true threats to our security often come from the simplest forms of technology that are least protected and least scrutinized.

Protecting All Supply Chains, Not Just Defense

While the defense industry has long been aware of the vulnerabilities in its supply chain, the reality is that every industry—from telecommunications to healthcare to local governments—needs to understand the risks associated with compromised electronics. It’s not just about military defense anymore; it’s about the security of our entire society.

PCBs are the backbone of any electronic device, making them an integral part of the supply chain. Despite this, there’s a glaring gap in policy focus, funding and investment to support a reliable and resilient domestic PCB manufacturing industry. The CHIPS Act’s investment in semiconductors is necessary, but chips don’t function on their own—they require a robust domestic PCB ecosystem to bring them to life.

Over the years, PCB procurement has migrated into a transaction process, with buyers seeking the lowest-cost option. This shift means PCBs are viewed as a commodity, even though each one is uniquely designed and manufactured. Supply chain managers and engineers are often unaware of the true risks involved, as well as the capacity constraints that exist within the U.S. to produce PCBs domestically. This mindset needs to change, and the first step is reassessing how PCBs are perceived within the supply chain.

Supply chain and risk managers must take a closer look at where their PCBs are being manufactured. All too often, companies work through brokers, electronics manufacturing services (EMS), or PCB assembly contract manufacturers (CMs) without truly understanding the origin of their boards. These PCBs frequently are manufactured overseas in dozens of countries which would give us pause if not for the low cost. We need to acknowledge the inherent, dangerous risks associated with unvetted overseas suppliers. It’s not just about getting the lowest price—it’s about ensuring that the PCBs in our electronic products are secure, reliable and manufactured under stringent quality controls.

While government support is crucial to help the U.S. PCB industry regain its pre-2000 manufacturing size, the most immediate and effective way to inject funding into this sector is to create a solid business case that drives demand for domestic PCBs. U.S.-based companies that moved their production overseas must recognize that the price they’re paying for cheaper PCBs comes with hidden risks that could have far-reaching consequences. The security of the electronics supply chain is more critical than ever in today’s interconnected world.

Protecting America’s Technological Backbone

The introduction of the Supporting American Printed Circuit Boards (SAPCB) Act in 2022, proposing $3 billion to stimulate PCB production, was a promising step. However, two years later, little progress has been made. This legislation is vital to creating a reliable, secure domestic supply chain that not only serves our defense needs, but also protects critical civilian infrastructure.

It’s more urgent than ever to communicate to lawmakers and industry leaders that a comprehensive and integrated microelectronics supply chain—one that includes PCBs—is essential for maintaining our technological edge and national security. This goes beyond just military applications; it’s about protecting our infrastructure, our communities and our everyday lives.

The solution starts with us, with every decision we make about where and how we source these critical components. Let’s make those decisions count.