Static electricity, also known as electrostatic discharge (ESD), is an electrical charge at rest, it builds and looks for somewhere to go. The discharge can cause two types of damage: catastrophic failure and upset failure.

Breaking or making contact between two materials can create a difference of electrical potential that can cause an ESD event. Similarly, electrostatic induction can also generate static electricity in a material by bringing an electrically charged object near it. This causes the electrical charges to be redistributed in the material, resulting in one side having an excess of either positive (+) or negative (−) charges.

“Electrostatic induction, also known as "electrostatic influence" or simply "influence" in Europe and Latin America, is a redistribution of electric charge in an object, caused by the influence of nearby charges,” Wikipedia explains.

In simple words, static electricity is the imbalance of charges. The main component affected by these devious charges are semiconductors. Static electricity causes damage to sensitive electronic components, so if one brings it near electronics, there will be failure.

A catastrophic failure of an electronic component can be the least costly type of ESD damage as it may be detected and repaired at an early manufacturing stage. Latent damage caused by ESD is potentially costlier since damage occurs that cannot be felt, seen or detected through normal inspection procedures. Latent defects can be very expensive as the product passes all inspection steps and the product is completed and shipped. Latent defects can severely impact the reputation of a company’s product. Intermittent failures after shipping a product can be frustrating, particularly when the customer returns a product, reporting a problem which the factory again fails to detect. It consequently passes inspection and the product is returned to the customer with the problem unresolved.

It is critical to be aware of the most sensitive items being handled in your factory. As electronic technology advances, electronic circuitry gets progressively smaller. As the size of components is reduced, so is the microscopic spacing of insulators and circuits within them, increasing their sensitivity to ESD. The need for proper ESD protection increases every day.