While reforms of defense supply chains have helped, the problem persists. In 2019 a California-based electronics executive was convicted for selling counterfeit semiconductor chips with fake branding that ended up in U.S. military systems, including a classified weapons system. The counterfeits were pulled from electronic waste (e-waste) – used or discarded chips – then altered by Chinese counterfeiters to appear like new semiconductors and sold to defense contractors.
Beyond security issues, there are broader risks for Americans. According to the Institute of Electrical and Electronic Engineers, counterfeits "threaten not only military systems but also commercial transportation systems, medical devices and systems, and the computers and networks that run today’s financial markets and communications systems."