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Counterfeits in the Electrical and Electronic systems

Counterfeits in the Electrical and Electronic systems

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Counterfeiting in the Electrical and Electronic systems supply chain continues to be a major problem that affects all companies!

Sales of counterfeit electronic parts have increased dramatically in recent years. This increase has resulted in steep industry costs, including the costs of mitigating counterfeiting risks, replacing failed parts, lost sales, and diminished brands and business images.

A counterfeit electronic component is one whose material, performance, or characteristics are knowingly misrepresented by the vendor, supplier, distributor, or manufacturer.i Examples include:

  • Parts remarked to disguise parts differing from those offered by the original part manufacturer (i.e. original manufacturer, country of origin, specified performance)
  • Defective parts scrapped by the original part manufacture
  • Previously used parts salvaged from scrapped assemblies

Manufacturing and Sale counterfeit parts is a crime!

Beyond standardizing performance, military specifications specified the testing protocols underlying the data used in statistical analysis to define various levels of reliability. Any manufacturer who qualified to these specifications and maintained the continuing testing could supply parts against these specifications.

Manufacturing or selling counterfeit products are particularly serious crimes that endanger national security, result in property loss, and can even cause injury or death.

PURCHASING PRACTICES

The most effective approach to avoiding counterfeit electronic components is to purchase product directly from the original component manufacturer, or from a distributor, reseller or aftermarket supplier who is franchised or authorized by the original manufacturer.

  • Original manufacturer warrantee
  • Proper handling, storage and shipping procedures
  • Failure analysis and corrective action support
  • Certificates of conformance and acquisition traceability

Independent distributors, however, do not have such agreements with the original component manufacturer and, therefore, have limited means to ensure product integrity and traceability.

MITIGATION METHODS

The following mitigation methods can be applied to reduce the risk of receiving counterfeit electronic components

  • Traceability Documentation

Without certificates of conformance and acquisition traceability, the purchaser takes on unknown risks. In addition to the independent distributor’s own acquisition certification, the purchaser should seek certificates of conformance and
acquisition traceability provided by the original component manufacturer and previous distributors

  • Compliance Verification

Compliance verification methods have been used with varying levels of success.iv Visual inspection, performed by individuals familiar with device marking requirements, can detect anomalies. Electrical testing can help reveal suspect lots. Both destructive and non-destructive physical analysis can also reveal suspect counterfeits.

  • Independent Distributor Selection

Independent distributor selection should include an assessment of their ability to verify the authenticity of the products they offer, particularly through traceability documentation. Some independent distributors subscribe to self-policing organizations with business practice standards intended to avoid acquiring counterfeit goods.

  • Outsourcing Electronic Component Procurement

Some users outsource procurement to another entity, such as an Electronics Manufacturing Service (EMS) provider or Contract Manufacturer.

The selection of an EMS provider or Contract Manufacturer should include audits of their methods and purchasing records to ensure their procurement practices mitigate the risk of their acquiring counterfeit parts

CONCLUSION

The most effective approach to avoiding counterfeit electronic components is to purchase product directly from the original component manufacturer, or from a distributor, reseller or aftermarket supplier who is franchised or authorized by the original manufacturer.

A substantial number of products required to produce and support defense electronics, however, are no longer available from the original component manufacturer or through franchised or authorized suppliers.


MICROREL offers truly experienced Consulting services for EEE Parts Procurement selection of High-Reliability Electronic Components and RF Microwave following sectors:

  • MMIC – Monolithic Microwave IC Design (1-100GHz) from L-band to V-band both in GaAs and GaN technologies
  • Hybrids, Packaging & Assemblies
  • COTS & PEDs (Plastic) components for High Reliability applications
  • Custom screening (Environmental/ Mechanical & Endurance) test and inspections plans
  • Evaluation Plans and Manufacturers assessment for validations & characterizations suitability.

In details, the following topics are covered: