Blog
Comment
Redding McLemore
Though it is not always possible, purchasing from an authorized distributor ...
DR IC
Silicon Expert has a very nice database of datasheets but I don't think I am ...
Industry considers counterfeit risk analysis tool
Sylvie Barak
2/17/2012 6:34 PM EST
MOUNTAIN VIEW, Calif.--Obsolescence, market shortages and price hikes are the key motivational factors for counterfeiters to target a part and make a quick buck, according to data compiled by electronic components database firm SiliconExpert Technologies.
Obsolete parts create a secondary market of brokers and independent distributors who are more than happy to source from any outlet they can, said Vineet Chaudhary product marketing manager at SiliconExpert, listing a host of other factors the firm believed created opportunities for counterfeiters to circumvent existing supply chain standards.
Tragic events like last year’s Japanese earthquake, or the more recent Thai floods often create opportunity for unscrupulous counterfeiters, looking to get rich quick as legitimate part prices soar.
Indeed, in order to cash in on price hikes and market shortages, counterfeiters are seemingly willing to endanger lives, with shoddy parts ending up in anything from vital medical equipment to mission critical military gear, across the globe.
This kind of negligent behavior may not be purposefully malicious, but the dire consequences put counterfeiters in the same category as malicious individuals who would otherwise be imprisoned for endangering human lives.
The horror stories are numerous; from soldiers experiencing weapons failure in the field, to medical equipment malfunction and aircraft failure. All in the name of easy profit.
Some products are easier to fake than others, said Chaudhary, noting that MosFETs, flash memory, FPGAs and microcontrollers were all often reproduced by counterfeiters, sometimes with alarming degrees of accuracy.
Meanwhile, certain manufacturers are known to be more prone to product forgeries, increasing their risk level in a bill of materials (BOM) assessment.
While the risks from counterfeiting are significant, however, it’s simply unfeasible for OEMs / EMSs to test every single part prior to manufacturing. Indeed, most of the current ways of attempting to mitigate counterfeit issues in the electronics industry are reactionary, rather than proactive.
The proactive stance is where SiliconExpert feels it can add value, with the recent launch of the firm’s counterfeit risk analysis algorithm, which aims to predict the likelihood of a part being targeted by counterfeiters. Much of the algorithm is based on historical data points from previously flagged faked components and can be used across several million parts.
The algorithm includes anything from whether a manufacturer has been badly affected by counterfeits in the past, to reported instances of fakes, ease of replication, and percentage of risk based on market conditions and price hikes. All of this combines to offer manufacturers a percentage of likelihood about how vulnerable their BOM or supply chain might be.
Obsolete parts create a secondary market of brokers and independent distributors who are more than happy to source from any outlet they can, said Vineet Chaudhary product marketing manager at SiliconExpert, listing a host of other factors the firm believed created opportunities for counterfeiters to circumvent existing supply chain standards.
Tragic events like last year’s Japanese earthquake, or the more recent Thai floods often create opportunity for unscrupulous counterfeiters, looking to get rich quick as legitimate part prices soar.
Indeed, in order to cash in on price hikes and market shortages, counterfeiters are seemingly willing to endanger lives, with shoddy parts ending up in anything from vital medical equipment to mission critical military gear, across the globe.
This kind of negligent behavior may not be purposefully malicious, but the dire consequences put counterfeiters in the same category as malicious individuals who would otherwise be imprisoned for endangering human lives.
The horror stories are numerous; from soldiers experiencing weapons failure in the field, to medical equipment malfunction and aircraft failure. All in the name of easy profit.
Some products are easier to fake than others, said Chaudhary, noting that MosFETs, flash memory, FPGAs and microcontrollers were all often reproduced by counterfeiters, sometimes with alarming degrees of accuracy.
Meanwhile, certain manufacturers are known to be more prone to product forgeries, increasing their risk level in a bill of materials (BOM) assessment.
While the risks from counterfeiting are significant, however, it’s simply unfeasible for OEMs / EMSs to test every single part prior to manufacturing. Indeed, most of the current ways of attempting to mitigate counterfeit issues in the electronics industry are reactionary, rather than proactive.
The proactive stance is where SiliconExpert feels it can add value, with the recent launch of the firm’s counterfeit risk analysis algorithm, which aims to predict the likelihood of a part being targeted by counterfeiters. Much of the algorithm is based on historical data points from previously flagged faked components and can be used across several million parts.
The algorithm includes anything from whether a manufacturer has been badly affected by counterfeits in the past, to reported instances of fakes, ease of replication, and percentage of risk based on market conditions and price hikes. All of this combines to offer manufacturers a percentage of likelihood about how vulnerable their BOM or supply chain might be.
|
|
|
|
|
Navigate to related information
Netteligent
2/21/2012 3:59 PM EST
Like drug war, we will never win counterfeit war unless we root out the evil, once for all.
Sign in to Reply
przemek
2/21/2012 7:04 PM EST
Your point being of course that one can't root out evil completely, therefore absolutist attempts (war on drugs, poverty, counterfeit parts) are doomed to failure. We can only manage the risk.
Sign in to Reply
KB3001
2/22/2012 5:39 AM EST
Absolutely, it's about managing the risk. I worry more about human errors than the technology, to be honest. You can invest millions/billions in secure infrastrcutures but it takes just a silly mistake by one of your employees to expose your whole infrastructure.
Sign in to Reply
SylvieBarak
2/21/2012 8:35 PM EST
I actually think you guys are being a bit too pessimistic. Hopefully! Perhaps with better electronic tagging systems or some sort of (I was going to say biometric... but that makes no sense...so perhaps chemical or electronic) verification method, we will be able to stem counterfeiting significantly. I doubt that counterfeit electronics dealers are willing to put in the effort if the rewards are not as high.
Sign in to Reply
Kwade
2/22/2012 9:11 AM EST
In this day and age of using Independent Distributors for obsolete, allocated, hard to find, end of life technology, who (at the supplier level) does not take the extra steps of having the "subject items" tested to the fullest extent? I have been in this industry for over 18 years. Are we here to make a profit? Absolutely, profit is not a dirty word, however, our organization, like many other "worthy independent suppliers' take every step necessary to A. use extreme caution of who we procure our material from and B. have every item tested for form, fit, and function before it is shipped to the OEM/CEM. Independent Distributors play a major role within the supply chain of almost every manufacturer that exists. So, in the end and in order to eliminate counterfeit product from penetrating any given supply chain, it comes down to the supply chain managers, planners, and buyers partnering with reputable and solid organizations who follow a very strict standard.
Sign in to Reply
Joe Wilger
2/22/2012 10:29 AM EST
Interesting article.
Just for fun, I looked up the part shown in the screen shot, OP249AZ/883.
The counterfeit risk has increased from 65% to 85% in the 5 days since this article was posted.
Make of that what you will.
Joe
Sign in to Reply
SylvieBarak
2/22/2012 11:25 AM EST
so you're blaming me, is that it, Joe? ;)
You know, I actually wonder whether it's counterfeiting that's increasing dramatically or our awareness of it. Could be a bit of both.
Sign in to Reply
Netteligent
2/23/2012 3:30 AM EST
Unlike Vineet Chaudhary product marketing manager at SiliconExpert, I can effectively point out exactly where the counterfeit products come from and who are running these huge operation.
You have the power, connections and wills. All you have to do is putting them out of business for a very long time at a minimal fees.
Sign in to Reply
dylan.mcgrath
2/23/2012 2:59 PM EST
@Netteligent- do tell. Who and where are the counterfeit products coming from?
Sign in to Reply
DR IC
2/23/2012 6:59 PM EST
Silicon Expert has a very nice database of datasheets but I don't think I am convinced on this system. Generating a BOM based on the risk of the components being used? It's nice in theory but will never work.
Netteligent, if you have such knowledge regarding these huge operations it is your duty to tell the authorities otherwise you are just as bad.
The best way to stay counterfeit free is to know your supplier. Physically visit your independent distributors, limit the amount which you use, make sure they're ISO 9001:2008 certified and review their inspection process.
Sign in to Reply
Redding McLemore
2/27/2012 4:17 PM EST
Though it is not always possible, purchasing from an authorized distributor removes a lot of risk. Short of that, more flexibility on the component engineering side for old programs can save a lot of heartache down the line. It is expenisve to re-spin a board, but a lot less than the pain of a counterfeit!
Sign in to Reply