Small Components With Outsized Supply Chain Risks

As electronic components get more connected, inverters have become a target for bad actors in the supply chain.

Key Highlights

  • Inverters convert DC to AC power, enabling renewable energy use and motor control in industrial settings.
  • They are critical control points in power systems, managing equipment speed, torque, and power flow for efficiency.
  • Modern inverters are connected to networks, making them vulnerable to cyberattacks that can disrupt operations or compromise safety.
  • Cybersecurity concerns have led to regulatory actions, including bans on foreign-made inverter approvals to protect national security.
  • Ensuring inverter security involves addressing vulnerabilities in remote monitoring, software updates, and supply chain integrity.

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Electronic devices that convert direct current (DC) into alternating current (AC), inverters play an important role in industrial electronics manufacturing because they make electricity usable by the equipment that runs factories, warehouses and other industrial facilities.

Even as industrial technology becomes more automated, connected and sophisticated, manufacturers need inverters that control motors, manage power from renewable sources and keep production equipment operating at the right speed and output.

The inverter’s staying power comes down to a basic electrical mismatch: solar panels and batteries generate or store electricity as direct current, while most industrial equipment and the electrical grid run on alternating current. Inverters bridge that gap. In motor control applications, they also adjust the frequency and voltage supplied to a motor, allowing operators to change its speed rather than running it at full output all the time.

In industrial operations, inverters handle functions like these:

  • On a conveyor line, an inverter controls speed and torque so products travel at the rate required by the operation. 
  • In pumping and ventilation systems, it adjusts motor output as demand changes, reducing electricity use and wear on the equipment. 
  • Solar arrays and battery storage installations use inverters to convert stored or generated DC electricity into AC power that a plant or the grid can use. 

The devices are also built into compressors, mixers, mills and extruders, which means a shortage or sourcing restriction can reach far beyond the clean-power sector and into everyday industrial production.

Small, Mighty and Vulnerable

Inverters are used at a critical control point in industrial power systems, which makes them an attractive target for bad actors. Many modern units can also be monitored, updated and controlled remotely. That connectivity gives cyberattackers a possible route into the equipment and systems connected to them.

As the control points or “brains” in a solar PV, wind or battery energy storage system (BESS) installation, inverters optimize power flow, monitor performance, ensure grid safety and coordinate with the batteries and loads that are connected to them, like electric car chargers, air conditioners and heat pumps. According to the International Energy Agency (IEA), modern inverters are usually connected to the internet and other networks, making them controllable remotely and therefore potentially vulnerable to cyberattacks.

“If a cyberattacker gains access, they can potentially control and alter the operation of the equipment the inverter is connected to,” a team of senior IEA technology and supply chain experts writes in Inverter supply chains and cybersecurity. “Cyberattacks can either target an asset directly by exploiting weak points in its online connection, password protection or remote-control system; or they can arise from threats in the supply chain if ‘back doors’ (unauthorized access channels built into devices) are established during the manufacturing process.”

Software updates can create another vulnerability area. For example, the IEA says malicious software can be included in an update supplied by the manufacturer, giving an attacker access after the inverter is already installed. Depending on the equipment affected and the scale of the attack, the consequences could range from a localized disruption to a lengthy blackout.

Pushing Inverter Security into the Spotlight

The IEA isn’t the only organization raising concerns about inverter cybersecurity. On July 28, the Federal Communications Commission (FCC) announced an immediate ban on approvals for new foreign-made inverter products, citing “unacceptable risks” to national security. The ban applies to all countries, making it a broad restriction on foreign-made products.

ING Research says the decision could further disrupt solar and battery supply chains, with ripple effects for the fast-growing data center industry. Already-approved inverter models are exempt, so developers can continue importing products that have an FCC ID. That should limit immediate disruptions. Over time, however, the restrictions could complicate sourcing.

“Concerns around inverters are increasingly focused on cybersecurity,” ING explains. “Many modern inverters have remote monitoring and control capabilities, creating potential vulnerabilities. If compromised, they could be manipulated or shut down remotely, disrupting power assets and, in extreme cases, affecting grid stability.”

About the Author

Avery Larkin

Contributing Editor

Avery Larkin is a freelance writer that covers trends in logistics, transportation and supply chain strategy. With a keen eye on emerging technologies and operational efficiencies, Larkin delivers practical insights for supply chain professionals navigating today’s evolving landscape.

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