News


From the editor's desk: Fake chips aren’t going away

16 August 2017 News

Anyone who’s designed and tested electronic circuits will tell you, having a circuit that doesn’t work is not the worst that can happen; it’s the intermittent faults that really hurt. For a product that’s gone into full production, having those products begin to fail in the field is about the worst outcome the manufacturer can face, necessitating repairs, recalls and possibly even redesigns. All of these problems, and many others besides, can be caused by fake or counterfeit electronic components.

It’s important to have a clear definition of what exactly makes a fake component fake, and the US Department of Commerce provides a definition of a counterfeit electronic part as “one that is not genuine because it: is an unauthorised copy; does not conform to original OCM (original component manufacturer) design, model or performance standards; is not produced by the OCM or is produced by unauthorised contractors; is an off-specification, defective, or used OCM product sold as ‘new’ or working; or has incorrect or false markings or documentation, or both.”

You may imagine these counterfeit chips being manufactured using cobbled together or out-of-date manufacturing equipment in a factory off some back alley in Shanghai and loaded into the back of an unmarked truck in the dead of night, but there are in fact several ways for them to find their way into the supply chain. While many are indeed made on illegal production lines, they are not always of such poor quality as to fail immediately, or at all, but substandard or non-existent cleanliness, packaging and testing means they almost never meet the guaranteed specifications of the ‘real McCoy’.

Other ways for them to be dispersed is by being salvaged from electronic waste, cleaned up and sold on the grey market. Buyers in particular risk of this tactic are those looking to obtain obsolete parts that are critical to their product’s design. Your best bet is always to buy from the original component manufacturer or one of their authorised distributors/resellers. Some companies even buy up stock of soon-to-be-obsolete parts and stockpile them, providing a legitimate supply source far beyond their obsolescence date.

There have also been claims of manufacturing rejects being packaged, marked and interjected into the supply chain as fully tested devices, by someone with access to the production facility. Amazon had a scare recently with stories of fake AMD processors showing up for sale, supposedly originating from a case of a customer who returned one as faulty, in its original and apparently unopened packaging, only to be resold to an unsuspecting buyer.

It’s not only unscrupulous or desperate electronics manufacturers who fall victim to counterfeit components. Last year three Chinese men pleaded guilty to conspiring to buy genuine field-programmable gate arrays (FPGAs) stolen from a US Navy base and replacing them with fake versions. An undercover agent foiled the plot before the duds could find their way into critical weapons systems.

The problem of counterfeit components has reached such proportions that the Silicon Industry Association (SIA) in the USA has set up an anti-counterfeiting task force which works continuously to curtail the supply and demand for these illegal products and to educate customers on how to avoid purchasing counterfeits. The association produced a 28-page white paper in 2013 which described the size of the problem and methods to mitigate the dangers. While it goes into much detail, the upshot of that white paper amounts to what should be considered common sense:

“As compared to the authorised market, the open market, including independent distributors, brokers, and Internet-based component exchanges, has far fewer controls over proper handling, storage and transportation of components, and often lacks component traceability to the manufacturer. This lack of controls and traceability, along with the frequency and ease at which components move through this non-authorised supply chain make the open market an easy target for counterfeiters to infiltrate to sell their illegal products that often have poor reliability. Semiconductor products purchased on the open market may be cheaper in the short-term than those bought from authorised sources, but they can be far more expensive in the long-term if they are counterfeit and/or were improperly handled and stored, thus potentially resulting in major rework costs and high warranty or liability claims.”

Postscript:

Have you ever been the victim of counterfeit components, or do you know of anyone who has? Send me your story – anonymously if you wish – to [email protected]

Brett van den Bosch

Editor



Credit(s)



Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Altron celebrates 60th birthday with a call to rebuild Johannesburg
Altron Arrow News
Altron is celebrating its 60th birthday by honouring Johannesburg’s heritage and encouraging business, government and civil society to come together and respond to our President’s call to rebuild Johannesburg.

Read more...
From the editor's desk: Groq – the future of AI processing?
Technews Publishing AI & ML
The introduction of Groq’s ASIC-based approach to AI inferencing marks a significant shift in the landscape of LLMs.

Read more...
Electronic News Digest
News
A brief synopsis of current global news relating to the electronic engineering fields with regards to company finances, general company news, and engineering technologies.

Read more...
Jemstech to produce PCB assemblies for Kamstrup
Jemstech News
Jemstech is pleased to announce that they have successfully concluded a supplier agreement with Kamstrup A/S in Denmark, a leading supplier of intelligent metering solutions in the global market.

Read more...
New appointments at Hiconnex
Hiconnex News
Hiconnex, a leading provider of electronic components and solutions, has announced key appointments to support its continued growth and commitments to its clients.

Read more...
FoundriesFactory service more affordable for smaller OEMs
News
Foundries.io has announced a new, tiered pricing scheme which reduces the cost of its highly regarded FoundriesFactory service for OEMs in the development phase of a new edge AI or Linux OS-based product.

Read more...
DMASS 2024 results
News
The semiconductor business faced a severe downturn, with a 31,9% decrease compared to 2023 and a 30,3% drop in Q4 2024 compared to the same period last year.

Read more...
Using satellite comms to end copper theft
News
According to Transnet COO Solly Letsoalo, the scourge of copper theft could be a thing of the past by eliminating the use of copper cabling and switching to a satellite communication system.

Read more...
Strategic merger: Etion Create and Nanoteq
Etion Create News
Reunert has announced the successful merger of two business units within the Applied Electronics Segment, namely Etion Create and Nanoteq, effective 1 October 2024.

Read more...
Securex South Africa 2025
Specialised Exhibitions News
Securex South Africa 2025 is co-located with A-OSH EXPO, Facilities Management Expo, and Firexpo to provide a time-saver for visitors looking for holistic solutions for their facilities.

Read more...