Recent deadly explosions of pagers and walkie-talkies used by members of Hezbollah in Lebanon have left 37 individuals dead and around 3,000 more injured. While details remain uncertain about the exact causes leading up to the explosions, the conversion of everyday devices into miniature explosives has resulted in anxiety about the looming prospect of “supply chain warfare.”

This example of the weaponization of the supply chain highlights the importance of supply chain trust. But even less dramatic examples show that building a trusted and secure end-to-end electronics ecosystem is a national security priority.

For example, when it comes to semiconductor manufacturing, the U.S. accounts for only around 12% of the world’s manufacturing capacity (a decrease from 37% in 1990), while 75% of semiconductor manufacturing is done in Asia. Semiconductors are important because they are the brains powering many of the devices that we use on a daily basis, like our computers, washing machines and many other items. Around 40% of the total cost of a new car is due to the various electronics integrated within it. Emerging artificial intelligence applications use specialized and powerful chips called graphics processing units (GPUs) that are currently in high demand. While the U.S. only makes 12% of the world’s semiconductors, it consumes around 25%, resulting in an imbalance between supply and demand.

Such an imbalance is problematic. The highly complex electronics supply chain makes traceability difficult, and presents plenty of opportunities for malicious tampering of components and assemblies along the way. One issue is counterfeit electronic components, which, once within the supply chain, can be difficult to identify. Tampering is also a potential problem, such as in the case of a tiny chip, approximately the size of a grain of rice, covertly inserted into server motherboards that allowed for unauthorized access. Hardware security is an increasingly important aspect of cybersecurity, and electronics can be the target of malicious actors looking to disable systems and steal data.

Recognizing that foreign dependence on semiconductors is risky from both an economic and national security perspective, the bipartisan CHIPS and Science Act was passed in 2022, with $52 billion in incentives for domestic chip manufacturing and research. Of the that amount, $39 billion was included for grants to enhance domestic manufacturing. So far, agreements with numerous companies have been announced to expand domestic capacity. Secretary of Commerce Gina Raimondo recently announced that the U.S. is on track to account for 20% of the world’s production of leading-edge chips by 2030, reducing dependence on other nations for supply.

Beyond semiconductors, there are other electronic components that make up the wider electronics ecosystem. One example is the printed circuit board, or PCB, a critical component that connects all of the other components together within a device. According to the Printed Circuit Board Association of America, the U.S. produces only 4% of the world’s PCBs, while China makes 54%. As with semiconductors, the lack of domestically sourced PCBs impacts the security and resilience of the supply chain.

A secure and trusted supply of chips is needed to ensure that the products and systems using them are also secure. This requires working with trusted partners and developing mechanisms for enhanced supply chain visibility and traceability. It also requires a comprehensive, end-to-end view of the supply chain, from raw materials all the way to finished products. Data analytics to support long-term forecasting and inventory planning can play an important role as well.  

Efforts related to onshoring and strengthening domestic manufacturing were a topic of discussion in the recent debate between Vice President Harris and former President Trump, and will continue to be of importance regardless of which candidate wins in November. A secure and trusted electronics supply chain is essential to build confidence in the products we use and to maintain the prosperity and security of the country. 

Zachary A. Collier is an assistant professor of management at Radford University, and a visiting scholar at the Center for Hardware and Embedded Systems Security and Trust (CHEST).