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Beware counterfeit electronic components

7 April 2004 News

The incidence and detection of counterfeit electronic and semiconductor components has been on the rise over the last few years. Companies doing business with China seem especially prone to this problem, since, in part, China is far behind the curve on IP protection.

So says Design Chain Associates (DCA), a San Francisco-based consulting firm that helps electronics OEMs focus on supply chain robustness and mitigate risk. Component-level counterfeiting is not limited to any specific commodity, adds DCA. Some of the commonly reported counterfeited parts are the following: amplifiers; capacitors (electrolytic, tantalum, ceramic chip); comparators; connectors; DRAMs; MOSFETs; NVSRAM modules; optocouplers; PLDs; power and power management devices; PCBs; resistors; RF ICs; and trimmers.

The consulting firm offers a few pointers to help companies avoid, or at least minimise, their exposure to the dangers of counterfeit electronic (and other) components:

* Buy direct from manufacturers or authorised distributors only. If you must use independent distributors (aka 'brokers'), demand a paper or electronic trail identifying the source of the material you are buying. If you cannot get that, contact the original manufacturer and provide a photo of the part/label to them for confirmation that it is not counterfeit. Otherwise, visually inspect (under a low power optical microscope, and compare to a known good device from the same manufacturer), functionally test, and/or de-construct a sample of the part yourself or via a third party failure analysis firm to identify what it really is, and make your purchase contingent upon the outcome.

* You may further want to consider restricting your use of independent distributors to those who subscribe to self-policing organisations that have set business practice standards.

* Put in place business processes that reduce the likelihood of having to buy from brokers. Proactively manage your product lifecycle vs component lifecycle differences and align your design and supply chains.

* If your procurement is outsourced to another entity (for instance, an EMS provider or Contract Manufacturer), be sure to understand and validate their sources of supply. Audit their methodologies and purchasing records for the types of components you use.

* Bad parts are not always counterfeit; sometimes parts that have already been marked, but failed functional or other testing, or were otherwise damaged, and were meant to be scrapped show up and are sold as new. Sometimes old parts are remarked with a current date code. Make sure your component manufacturers have disposition methods that assure none of their scrap is brought to market by 'dumpster divers'.

DCA has direct experience with counterfeit parts and can help detect, prevent, and rectify counterfeit component problems.

For more information contact DCA, www.designchainassociates.com





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