The Rising Problem of Counterfeit Components

Published:2011/7/21 1:59:00 Author:Phyllis From:SeekIC

According to a survey published by the US Department of Commercial and commissioned by the US Naval Air Systems Commands, more than 50 percent of surveyed electronics distributors had encountered counterfeit components. Among them, 10 percent of the companies were franchised.

The survey questioned companies from five segments in the supply chain. They are the component manufacturers, distributors, pcb assemblers, contractors, and defence agencies. 39 percent of the surveyed companies had experienced counterfeit electronics during the period from 2005 to 2008. And the number of counterfeit incidents increased from 3868 to 9356 during that period.

Counterfeit components, literally, means components whose identity or pedigree has been deliberately altered or misrepresented by their suppliers. There is no system in dealing with such problems. The weaknesses in the recordkeeping, reporting practices, inventory management, procurement procedures, inspection and testing protocols, and communication within and across all industry and government organizations make counterfeit worse. Although most of the counterfeit components were found in non franchised distributors, those with franchises couldn’t be ruled out either.

The problem will be one of the biggest issues for distribution in the following years. This is not only an issue for any single company, but also an issue for the whore electronics industry. The first precedent was made by the move to low cost offshore production. As a result, counterfeit components followed. This move offshore allowed counterfeit components enter the supply chain. One way is through companies buying back surplus stock.

Fake military components are generally easy to spot as they are often built in batches. The threat of counterfeit components is a major business issue. If companies want to maintain the confidence of customers, the process involves a series of overheads.

Companies can use known good markings from their principals to identify components and photographing devices. The size of today’s chips means marking is a serious problem since most products don’t have enough room for and markings.

An important thing of protecting from counterfeiting is to buy from franchised distributors only. However, even well respected brokers are buying parts that have change hands five or six times. Counterfeiting is a bigger problem in the wider market. The trouble is these products are often so good and can pass electrical test. The related integrated circuit is EPCS4SI8N.

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