Since 2009 the number of fake microchips being found in available hardware has tripled.
Most surprisingly most of these fake microprocessors are being found in military and aerospace aplications.
Officials warn that many lives are being put at risk by the counterfeit components because they are more likely to fail in high stess situations.
There were more than 1,363 fakes reported in 2011, according to reports.
Five of chips most widely counterfeited, included microprocessors, analogue integrated circuits and memory chips.
Analogue integrated circuits are widely used in domestic gadgets such as wireless routers, TVs and computers.
Electronics firms are coming under more pressure to watch out for fake components as governments move to enforce regulations to police component suppliers.