Counterfeit electronic components

Counterfeit electronic components are electronic parts that are misrepresented as to their origins or quality. Counterfeiting of electronic components can be an infringement of the legitimate producer's trademark rights. Since counterfeit parts often have inferior specifications and quality, they may represent a hazard if incorporated into critical systems such as aircraft navigation, life support, military equipment, or space vehicles.

The marketing of electronic components has been commoditized, making it easier for the counterfeiter to introduce substandard and counterfeit devices into the supply chain.

According to a January 2010 study by the US Department of Commerce, Bureau of Industry and Security the number of counterfeit incidents reported grew from 3,868 in 2005 to 9,356 in 2008. Respondents to the survey cited the two most common types of counterfeit components were blatant fakes and used product re-marked as higher grade. This survey had 387 respondents representing all facets of the electronic component supply chain. All facets of the supply chain reported instances of counterfeit product. The World Semiconductor Trade Statistics estimates the global TAM for semiconductors will be in excess of $200 billion, thus the 387 respondents provide quantitative results for only a small portion of the total market.

This increase in instances of counterfeit products entering the supply chain has been made possible by fundamental changes to the supply chain for electronic components as characterized by the following:

These counterfeiting techniques are in constant improvement.

By utilizing multiple different types of incoming inspection most counterfeit components can be discovered.

As the instances of counterfeit and substandard products continue to increase, industry is beginning to address these issues through development and implementation of industry standards. As the majority of the counterfeit components were entering the supply chain though unknowing, unsophisticated, and unaware Independent Distributors (Component Brokers).

Continued work on awareness and industry standards continued with the formation of the G-19 Counterfeit Electronic Components Committee with representatives from all components of the supply chain. In April 2009 SAE International released AS5553 Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition.

SAE International (SAE), has implemented new standards to prevent the dangers associated with the growing threat of counterfeiting, as have other Independent Distributors. Smith & Associates now has a certified anti-counterfeiting lab to help monitor for non-conforming parts. AS6081 was issued in November 2012 and was adopted by the DOD. This standard provides uniform requirements, practices, and methods to mitigate the risks of purchasing and supplying fraudulent or counterfeit electronic parts for distributors. This standard requires organizations involved with the purchase, acceptance, and distribution of such parts to have a quality management system in place, to communicate and document contract provisions that establish purchasing controls, and to retain appropriate records for supply chain traceability. In addition, AS6081 requires the purchased products to be verified through external visual inspections and radiological examinations.

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