This article reveals the scale of semiconductor counterfeiting, identifies counterfeit forms and recommends solutions to protect product performance, customer safety and brand reputation.
Counterfeit semiconductors pose a persistent threat to the safety and reliability of electronic equipment, particularly during allocation or when scarce or discontinued parts may be in short supply.
Sourcing components through unauthorized independent channels for faster delivery or lower costs introduces the risk of counterfeits, potential damage to customer-end equipment and compromises end-user safety, ultimately endangering customer reputation. This has been repeatedly demonstrated in incidents where counterfeit devices resulted in severe fines for companies and responsible employees.
The 2024 ERAI report showed a 25 per cent year-over-year increase in suspected counterfeit and non-conforming parts, the highest number reported by ERAI since 2015. In 2022, the global economic impact of counterfeit goods, including semiconductors, was estimated to reach $1.9 trillion.
The consequences of allowing substandard or counterfeit products to enter the supply chain include:
● Reduced production yields and increased rework
● The introduction of malware or changes that enable third parties to access the software
● Increased in-service failures and reduced reliability
● Heightened risks and financial liability associated with catastrophic system failure
● Potential reputational damage
What is a counterfeit semiconductor product?
● Non-functional or scrap product, which is re-marked as good and resold
● Substandard functional product that is re-marked and sold as a full-grade product at an increased price
● Recycled and recovered components that are sold as new
● False testing and traceability documentation that hides a component’s actual specification or history
Counterfeits are often harvested from electronic waste using crude and poorly controlled processes. In semiconductors, this results in higher failure rates than genuine products. Some counterfeit semiconductors fail immediately upon electrical test or first use, while others will fail after extended periods of field application.
Additional testing can never fully eliminate the risks associated with counterfeits and third-party testing processes cannot guarantee the quality of devices. The limitations of third-party processes make customers susceptible to added scrap, rework, in-service unreliability and litigation.
However, counterfeit semiconductor risks can be mitigated by adhering to basic sourcing principles. Fully authorized partners exist to support customers’ obsolete semiconductor needs, in some cases, 30 years after the original discontinuation.
Policies to avoid counterfeit products:
● Only purchase products from the original component manufacturer (OCM) or their authorized distributors and licensed manufacturers
● Purchase from an authorized supplier with full warranties for performance, quality and reliability
● Ensure your supplier complies with the industry standard AS6496 for handling and preservation, with quality certifications as appropriate for selling a final component
● Implement a self-audit process to analyze suspicious or poor-quality purchases, then take robust corrective actions
● Choose a testing program that uses the original component manufacturer’s (OCM) test program
● Partner with a licensed semiconductor manufacturer
Authorized aftermarket suppliers and manufacturers, such as Rochester Electronics, as named by the United States Department of Defense (DFARS), provide 100 per cent guaranteed, counterfeit-free sources for active and obsolete semiconductors.
Finished devices stored and supplied by authorized sources are guaranteed to come only from the OCM and to have been stored in accordance with the OCM’s recommendations. These products offer a 100 per cent conformance guarantee.
As a licensed manufacturer, Rochester Electronics can offer ongoing production of obsolete devices. Built from known-good die, these products are tested using the OCM’s test procedures and, in many cases, the original test equipment. Devices are guaranteed to be 100 per cent compliant with the original specifications.
All resulting products are 100 per cent certified, licensed, guaranteed and sold with full approval under the original manufacturer’s part number.
