What type of electronic components are being counterfeited?

According to the UKEA Anti-Counterfeiting Forum the following list demonstrates, not only the wide range of components that are known to be subject to counterfeiting, but also that the counterfeiting of relatively low unit cost components is considered to be profitable. Although, the majority of industry activity appears to be focused on the counterfeiting of semiconductors, other component types are also subject to counterfeiting.

• Amplifiers
• Batteries
• Capacitors (ceramic chip, electrolytic, tantalum)
• Circuit breakers
• Comparators
• Connectors
• CPUs
• Diodes
• DRAMs and DRAM modules
• Ferrites
• Filters
• Inductors
• Lead-free solder
• Linear ICs
• Mil spec semiconductors
• MOSFETS
• NVSRAM modules
• Opto couplers
• Programmable logic devices
• Power and power management devices
• Potentiometers
• Printed circuit boards
• Resistors
• Radio Frequency ICs
• Software
• Thermistors
• Transistors 

Please note this is not a comprehensive list and it has been drawn from several sources – new component types, not listed here, are being added to the counterfeiters’ list on a regular basis at http://www.anticounterfeitingforum.org.uk/counterfeiting.aspx#what

New United States Anti-Counterfeit Legislation Has Impact on Global Suppliers

The new United States legislation to combat suspected counterfeit electronic components from entering the department of defence supply chain is going to have a global impact for many companies in many countries according to a new report released by IHS.

Overseas companies have supplied the department of defence contractors with billions of dollars worth of materials and equipment. The table from IHS below represents the highest ranking global regions by sales revenue to the US government.

“There’s a perception that U.S. regulations such as 2012 NDAA, Section. 818. Detection and Avoidance of Counterfeit Electronic Parts, is only an issue for American companies, and that they don’t impact firms in Europe, the Middle East and elsewhere,” says Greg Jaknunas, the senior product manager for supply chain solutions at IHS. “However, the impact is beginning to be felt worldwide, as many international companies and global manufacturing facilities can directly participate in the defense supply chain and begin to see customer requests for counterfeit detection and avoidance measures that are flowed down through the supply chain.”

“The 2012 NDAA requirements will get pulled through the global supply chain,” Jaknunas continues “Owing to the complex nature of the supply chain, it will become an international concern. In a way, this is similar to the EU’s restriction of hazardous substances (RoHS) environmental directive, which called for the elimination of six hazardous materials in electronic components and systems, most notably lead. While RoHS requirements appeared to be European in nature, they had a ripple effect worldwide as suppliers all over the world changed their products in order to continue to do business in the key EU markets.”

The original IHS press release can be found here.

Counterfeit Risk & New Defence Regulations

IHS's most recent webcast was focused on the National Defence Authorisation Act for Fiscal Year 2012, specifically section 818 which deals with the detection and avoidance of counterfeit electronic parts.

Webcast speakers included, ERAI Vice president, Kristal Snider and Rick Pierson, senior analyst at IHS. The act, which was signed into affect by President Obama on January 1^st details the new penalties for non-compliance of the act. A brief overview of which is shown below.

There is wide debate at the moment regarding the definition of terms such as “trusted suppliers.” Kristal Snider of the ERAI says, “Some people think that the term 'trusted suppliers' only applies to OCM's (original component manufacturers) & authorised distributors.”

On the subject of who is responsible for this, Snider continues, “The government is blaming the contractors, the contractors are blaming the sub-contractors, the sub-contractors are blaming their distributors and the distributors are blaming their suppliers and so forth. Its like everyone in the supply chain is standing there with their hands in the air saying it wasn't me.”

According to IHS data:

• Semiconductor pricing is on the rise.
• While broad based price increases are not uncommon in the semiconductor industry, most electronic components are entering a phase of some sort of price increase.
• This pricing situation should continue throughout 2012.
• When pricing trends upward, lead times tend to extend as well moving beyond normal levels.
• This type of price and availability environment is the perfect environment for counterfeit components to thrive.

Only time will tell if the new measures set down by the US government will have a positive impact on counterfeiting incidents. At Cyclops Electronics we have always been pro-active in the fight against counterfeiting and unreliable suppliers. For instance in September 2011 we released an “8 step guide to buying components with confidence and avoiding counterfeits” that can help mitigate the risks involved when buying components. More information can also be seen on our quality procedures video where we demonstrate some of the tests from the guide.