Flip Electronics highlights the danger of counterfeit components and introduces readers to its new e-book: Counteracting Counterfeiting: The Value of Authorized Distribution.
Counterfeiting components is big business and a leading threat to supply chain integrity. With almost one trillion semiconductors sold annually—100-plus chips for every person on earth—the temptation is irresistible for those with the means and inclination to take advantage of a $611 billion market.
Buyers have a daunting task ensuring components are the real deal. Counterfeiters can be sophisticated, putting parts on the market that are almost indistinguishable from the real thing, including fake documentation. They can also be industrious: diverting supply chains; mimicking intellectual property; and spinning a living wage out of discarded devices.
Shady fabs run extra shifts, siphoning off excess components to the grey market. No one is safe, not those on technology’s cutting edge or those trying to find a reliable source for end-of-life or obsolete components. ERAI found 62 per cent of parts reported as counterfeit in 2022 were classified as ‘active’ while just 33 per cent were classified as ‘obsolete’ or ‘not for new design’.
While there are tools and technologies to help identify and eliminate fake components before they’re incorporated into finished products, the best offense is a good defense—deal directly with original equipment manufacturers or their authorized and franchised distributors. It’s the only sure way to know components meet rigorous performance/quality standards set by their manufacturers. However, given the number of counterfeits in the market—10 billion on a given day, by some estimates—even the most diligent among us must remain hypervigilant.
To help electronics companies and their customers identify and mitigate the risk of counterfeits in their supply chain, Flip Electronics published its latest e-book—Counteracting Counterfeiting: The Value of Authorized Distribution—which illuminates the scope of the problem, with insights into:
- Which components are most vulnerable
- How complex global supply chains impact tracking and authentication
- Sophisticated (and not so sophisticated) tools and technologies counterfeiters use
- Temptations and pitfalls of sourcing from the grey market
- Real-world consequences of building vulnerabilities into products
- Prevalent trends in counterfeiting—and what to do
- Address obsolescence effectively before and after component end-of-life