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SMT007-Oct2024

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50 SMT007 MAGAZINE I OCTOBER 2024 • Use of cutting-edge technologies: Coun- terfeiters leverage advanced technologies like artificial intelligence (AI), 5G, and quantum computing to produce highly accurate replicas that challenge conven- tional detection methods. The Role of State-Owned Enterprises Chinese state-owned enterprises (SOEs) have been implicated in producing cloned counterfeit electronic parts, particularly complex semicon- ductor chips like fine-pitch grid arrays (FPGAs) and microcontrollers. ese components are essential in high-stakes applications, including medical, military, and aerospace systems. e cloning process oen involves reverse engineering authentic products and, in some cases, intellectual property the. SOEs possess advanced manufacturing technologies that allow them to produce high-quality counterfeit com- ponents, making it challenging to distinguish between genuine and cloned parts. e involve- ment of SOEs is particularly concerning due to their access to advanced manufacturing technol- ogies and potential for large-scale operations. Examples of Chinese SOEs • China Electronics Corporation: A major player in the electronics sector, involved in the production and distribution of electronic components. • China Aerospace Science and Technol- ogy Corporation: Engaged in aerospace and defense, with capabilities that could extend to advanced manufacturing technologies. Large-scale Counterfeiting Operations e 2012 Senate Armed Services Commit- tee investigation described seeing whole fac- tories in China with 10,000 to 15,000 people set up for the purpose of counterfeiting. Fur- thermore, it is well known that clones of com- plex FPGAs currently exist and are manufac- tured by Chinese state-owned companies. is suggests industrial-scale operations that could potentially involve China SOEs, rais- ing significant concerns about the quality and reliability of electronic components in critical systems. Figure 2: X-ray fluorescence illustration.

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