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thiagorulez
Most of these fakes are poorly refurbished products pulled from places like ...
Netteligent
Apple selling its well known apps, musics, videos for less than $5 or much less. ...
Ferreting out the fakes in the chip supply chain
Bruce Rayner
8/15/2011 9:01 AM EDT
How do you tell if a component is authentic?
Eyeballing the chip is a start, but it won’t be enough. These days, you’ll need a digital camera, a laboratory-grade high-powered microscope, a binocular stereo-zoom reflected-light microscope and, to be on the safe side, an X-ray inspection system. You’ll also need to be trained in the fine art of decapping semiconductor packages, both mechanically and chemically.
As the criminals become more sophisticated, catching bogus parts is becoming increasingly difficult and costly. But catch them you must, especially if your company makes equipment for the auto, aerospace, medical or military markets, where bad parts could mean lost lives. Indeed, if you skimp on due diligence or “knowingly” buy counterfeit parts, you may be held liable.
Conviction for an individual carries a fine of up to $2 million, prison time of up to 10 years or both.
The sheer number of counterfeit parts entering the supply chain is rising at an alarming rate. For example, in June, $852,000-worth of counterfeit SanDisk portable memory chips were discovered and seized by federal agents at the Port of Long Beach/Los Angeles, according to the Los Angeles Times. Agents from U.S. Customs and Border Protection (CBP) found the chips hidden inside 1,932 karaoke machines shipped from China.
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In Guiyu, China, some residents scrape out a living dipping pc boards in open vats of acid to harvest parts and materials. |
Counterfeit computer hardware, including chips, was one of the top commodities seized in 2010 by U.S. Immigration and Customs Enforcement (ICE). Seizures in the category were up fivefold over 2009, ICE reported.
Between 2007 and 2010, ICE collaborated with CBP on more than 1,300 seizures involving a total of 5.6 million counterfeit semiconductor devices. The fake parts bore the trademarks of 87 Asian, European and North American semiconductor companies. More than 50 of the seized counterfeit shipments contained devices that were falsely marked as military- or aerospace-grade.
A 2010 U.S. Department of Commerce study of counterfeit electronics in the defense industry corroborated the trend. Based on responses from original component manufacturers(OCMs), the Commerce study found an increase of more than 150 percent in counterfeit parts in military and government applications between 2005 and 2008.
Next: National security threat
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Cliff Keller
8/15/2011 3:55 PM EDT
I disagree with the tone of this article. It is actually very easy to avoid counterfeit and reused devices. Just buy the devices directly from the supplier or through franchised distributors. The problems come from buying through "gray market" sources to save a little money.
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maryl
8/15/2011 8:09 PM EDT
It is not always a matter of money. Sometimes the "gray market" is the only choice if you are supporting designs that require obsolete components when there are issues redesigning the product to use newer parts. I believe the article mentions this in relation to the military and aerospace industries.
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Etmax
8/15/2011 8:18 PM EDT
I'm sorry Cliff, but the author did cover what you said elaborating on how the parts make their way into the "official" channels. Yes most of it is grey market, but there are exceptions. Consider also that the semi companies now manufacture in china and distribute to the world from there. What makes you think that a country that puts melamine in baby milk resulting in kidney damage won't add a duds to the mix?
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ibm221
8/16/2011 3:32 AM EDT
this is devil, dude, and it's everywhere.
US president could also lie about his everything.
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pdudley
8/19/2011 2:25 PM EDT
That is like Miss America wanting "Peace on Earth" ....it's a real nice thought - but totally unrealistic!
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Zappers
8/16/2011 9:11 AM EDT
It is not only US where counterfeit portable memory chips are sold but all over the world. Memory Chips (especially upgraded ones which are originally 512Mb are sold as 2GB) are sold one third of the price of original 2GB memory Chips. I am almost postive that Asia consumes probably equally or even much more of these counterfeits than USA today!!!
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DrQuine
8/16/2011 10:00 AM EDT
A really effective means to secure the supply chain would have wide application across many industries. The same problem affects the pharmaceutical business where counterfeit pills sometimes manage to cross into the "legitimate" distribution channels.
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Dan.Deisz_#2
8/16/2011 11:03 AM EDT
Buy from Authorized Distributors first and then go to independents if there is no Authorized solution anywhere. Franchised does not mean Authorized necessarily. If buyers consistently want to buy based primarily on price or who they have worked with in the past, regardless if they are authorized, counterfeit will continue to grow. Rochester Electronics has over 500,000 obsolete device types. This obsolete product story along with many other Authorized providers/solutions means most of the obsolete market is covered very well. No excuses not to buy Authorized when that solution is available in my opinion.
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prabhakar_deosthali
8/17/2011 2:48 AM EDT
Buy from the supplier who is ready to take back his supplies if the parts are found to be fake. As long as this guarantee is given by the supplier, you don't have to worry if the supplier is an authorized distributor or an independent one
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Dan.Deisz_#2
8/17/2011 7:32 AM EDT
Except this requires YOU to figure out if you have a problem. You have to take on the burden of proof and risk to your product and schedules. Authorized sources with fully authorized product ensure no counterfeit.
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agk
8/17/2011 3:40 AM EDT
A difficult area to make counterfeits. Once at my work place we found that QC rejected whole lot of elctronic isolators as it was not meeting the production specifications. The samples were brought to us. We could not find any difference in the product when compared with the previous lot. but still they were failing. That was tested stage by stage and we found that an op amp was not performing as it should. Few samples were brought from the stocks in our stores. Examined under magnifier and found to be a fake one. While seeing the purchase records it was supplied by a dealer who is not an authorised for that brand. The part was again purchased from an authorised seller and all the isolators reworked with this part. Then it passed in the QC.
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McGookin
8/24/2011 1:29 PM EDT
I'm tasked with investigating just such situations for the FBI. I would love to receive tips like this at Cory.mcgookin@ic.fbi.gov
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AMPT/OEM-Sales
8/17/2011 10:15 AM EDT
Or partner with a reliable Independent Distributor like Advanced MP Technology which has all of the precautionary measures (laboratory-grade high-powered microscope, an X-ray inspection system, decapping capabilities, strict ISO 9001: 2008 & ISO AS9120:2009-A QC Procedures) in accordence with each of our individual customers stringent shipping and receiving requirments to ensure the authenticity of the product. www.linkedin.com/in/mikestifter
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RogerD_#2
8/17/2011 11:28 AM EDT
How much longer are we going to tolerate the inaction of the Chinese government to halt counterfeiting of all types - from ICs to Apple Stores?!?!?!? The Chinese authorities only give lip-service to the world's complaints about rampant counterfeiting, while at the same time allowing it with a wink and a nod - it's all about money folks, money=power, and the Chinese government is bound and determined to become the most powerful entity on the planet by whatever means necessary. You think China really cares about counterfeiting as long as it brings in profits to their country?? Don't be naive! China is the problem - and nobody is taking decisive action to stop them!
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Saturation
8/17/2011 3:11 PM EDT
A scary part is, and reiterated in this article, even if you buy from authorized distributors you can still get counterfeit instead. It seems in-house testing is the most foolproof way to spot them, and if they meet design specification, it won't matter if its counterfeit.
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mountaincore
8/17/2011 3:49 PM EDT
Accept that is rewards bad behavior.
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Dan.Deisz_#2
8/17/2011 6:26 PM EDT
Through most Authorized Distributors like my company (Rochester Electronics), it is not possible to get counterfeit. No returns and no grey market, only OCM product. In-house testing doesn't guarantee no counterfeit, this too is a huge variable. Buy Authorized is if available is still your best first step.
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McGookin
8/24/2011 1:32 PM EDT
It still matters. Buying counterfeit only helps the bad actors succeed and continue their ways. Ultimately it will matter a lot when lives are lost. Have a tip - email me - cory.mcgookin@ic.fbi.gov
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Cliff Keller
8/17/2011 3:39 PM EDT
Yes, you could even get bad parts direct from the Manufacturer. But, in the supply chain buying direct or through the franchised distributors drastically cuts the chances of getting bogus parts. Franchised distributors will be terminated by the supplier if they sell "gray market" devices, and that is too big a penalty for them to risk.
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elctrnx_lyf
8/18/2011 10:53 AM EDT
The recycling of electronic products is probably one reason for the fake components to enter the market. The only way to make sure that no fake components is to buy from authorized suppliers.
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Patk0317
8/18/2011 2:19 PM EDT
Gray market parts are more common during a downturn when companies who bought parts above board are forced to get rid of excess inventory that the supplier refuses to take back. The parts are probably perfectly good, but the manufacturer won't support them if they can show that those date codes were sold to company A and some other company is coming to them for tech support. Counterfeit parts are always an issue but again, date codes may prove they are counterfeit.
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Mike.Dillon
8/19/2011 4:18 PM EDT
The issue facing the DOD (and others) is that there is no traceable supply chain for parts that have been out of production for years.
The gray market is the only game, you hope there is unused inventory sitting on the shelf somewhere, but since all that was written off and surplussed (to get it off the books) a long time ago from the traditional supply chain, hard to tell what you get, testing does not help, since you don't have any idea of the production process, how do you do a statistical analysis ?
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TFCSD
8/25/2011 10:11 PM EDT
Back in the old days, older electronics disposal was so dispersed that reclaiming useable amounts of items to turn into counterfeits was unprofitable. Now everybody in a "green" effort are shipping everything to a few concentrated recyclers and vola! We have counterfeits galore.
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Netteligent
9/12/2011 4:25 PM EDT
Apple selling its well known apps, musics, videos for less than $5 or much less. The more populars, it costs much less.
You can rent or stream high quality videos from Hulu, Wal-Mart, Amazon, NetFlix for less than $15/mo with little annoying advertisements.
Industries listening to lawyers and spending billion of dollars on Digital Right Managements and fighting with copyrights.
Cutting down all the unnecessary "middlemen" and pass on saving to customers directly. Only values added providers will survive and grow.
Suddenly, all the "counterfeits" and "copyrights" in Entertainment Industry disappears.
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thiagorulez
5/13/2013 12:56 PM EDT
Most of these fakes are poorly refurbished products pulled from places like electronics disposal in Chicago, or wherever, and spotting them is really not that hard. As suggested, don't be cheap. If you must have the tech, pay for it.
http://www.acmeelectronicsrecycling.com/services/electronics-recycling
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