What is the Threat of Counterfeit Components?

The introduction of standardised currency, in the form of coins made from precious metals, immediately brought with it the problem of counterfeiting. Initially, the value of a coin was based on its physical properties, as opposed to its transferable value.

This led people to skim fragments off coins, which lowered both the physical and transferable value. By applying a serrated edge to a coin, however, it became obvious if any of the metal had been ‘misappropriated’, thereby protecting the coin’s integrity.

Today, more sophisticated techniques are required because anything that carries a transferable value is a potential target for counterfeiters. But as the techniques to foil the counterfeiters have developed, so too has their sophistication in overcoming them.

An inherent feature of counterfeit goods is their lack of quality, something that is hard to forge without incurring costs. This is no more apparent than with electronic components, and numerous counterfeit components avoidance workshops are now delivered at industry events to illustrate this point.

The hard truth
But is all this exposure merely fuelling unfounded concerns? Unfortunately, it is not. In China you can almost certainly find any electronic component you want, but it is almost equally certain it will not be genuine. These counterfeits come from a variety of sources, often recycled under less than clean room conditions.

Indeed, in some parts of the developing world it is possible to see people sitting in the street, using nothing more sophisticated than a simple camping stove to reflow the solder joints on a board and then dislodge components by hitting the board against the ground.

Retrieving parts
Components removed from boards in this way are generically termed ‘pulls’, irrespective of the process used to harvest them. Whatever process is used, it will rarely include any ESD protection, but that hardly seems important considering that the parts retrieved are typically only sorted according to the package type.

Following some superficial repair they will be branded with the (ir)relevant information according to the order being filled. As long as the packaging and part number correspond, it is difficult to identify such counterfeit devices until they are placed in a board.

For example, a batch of 400 devices tested recently by us showed that, despite all being branded as being manufactured by a big name supplier, only 5% were genuine parts.

Components that are ‘pulled’ from boards is one example of counterfeiting, others are even more subtle. Regions of low economic development around the globe offer an opportunity to the counterfeiter in the form of ‘ghost shifts’, which are normally operated outside the core hours of remote manufacturing or processing plants. Here all the technology, materials and manufacturing capabilities needed to produce what would essentially be genuine components are at hand.

However, another recent inspection of what were supposed to be quad voltage comparators manufactured by a well-known supplier revealed numerous manufacturing faults and some parts did not even contain a silicon die.

Unfortunately, it is not uncommon for shipments of wafers to be stolen while in transit between processing plants. Although they are likely to be used to manufacture ‘genuine’ parts, the strict quality regimes used by the industry are less likely to be adhered to and as a result they will invariably be rendered substandard.

All the examples given above are real and have been experienced by Alter Technology UK (previously IGG Component Technology). However, to suggest that all OEMs should test all electronic components entering their supply chain is not an answer to the problem.

Counterfeit components can enter the supply chain through either franchised distributors or non-franchised brokers. The key is in recognising that when the source of components changes, so too does the potential risk from counterfeits.

This is most likely to occur when demand for a component increases, perhaps due to a drop in supply. In this case, you can take a phased approach to detecting whether or not you have counterfeit electronic components in the supply chain.

In the first instance, we secure a batch of components using a secure payment transaction service, such as ESCROW. Having secured the batch, the next step is to evaluate the components, a process that is discussed and agreed with the OEM, depending on various parameters including the application, but the actual tests carried out are always comprehensive.

If the results show the parts to be counterfeit, the OEM has avoided a potentially expensive product recall. Even if they are found to be genuine, the peace of mind that knowledge brings is worth the cost of testing.

Whenever doubt exists over the providence and integrity of supply, we believe we have a safe, pragmatic and cost effective method for detecting counterfeit components.

Electronics Weekly, a sister publication of EM Asia