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.
