The Number of Counterfeit Components is Rising Exponentially

The number of counterfeit components entering into the supply chain is rising exponentially and as the numbers increase so does the sophistication of the counterfeiters as they produce better fakes. Military, Space and Generic Semiconductor OEMs are now procuring obsolete devices via the open market and are now facing the problem of how to effectively and efficiently detect the counterfeit components. These companies now need to put processes in place to ensure counterfeit devices do not make it into their production lines. These devices can range from already defective units being sold as good, reworked defective units and their packaging being re-marked/ re-labeled as different units, to packages not even containing die. Concerns by various Aerospace and Defence Contractors have led to many directives regarding inspection and quality control for IC component manufacturers. One result of this concern is programs by the US Department of Defense titled “Trusted ICs” and “Trusted Foundries” programs, which focus on the goal of trusting, but verifying sources and components.

What are counterfeit components?

Counterfeit: made in imitation so as to be passed off fraudulently or deceptively as genuine. The manufacture of counterfeit (or fake) components is an illegal process that emerged due to the transferable value of electronics parts. Any company in the world requiring components to manufacture Printed Circuit Boards (PCBs) is at risk and many have already received batches of “bad” devices. Counterfeiting is achieved through various processes. Devices known as “pulls” are removed from scrap boards (which have been discarded) in a process that is highly unsafe. Following minor repairs, these devices are branded with relevant information (including a manufacturer’s logo) and passed on to an unsuspecting buyer as genuine. Another technique is to actually produce components using the normal manufacturing capabilities in “ghost shifts” which take place outside of standard hours. However, the chips created that way include many manufacturing faults and some may not even contain a silicon die. Unfortunately, it is not possible to differentiate counterfeit components until they are placed on a PCB and the production team runs the first tests on the complete assembly. This leads to the costly process of identifying the component(s) at fault and then removing them from all boards in production. In some cases, complete batches of finished products need to be recalled to the factory. In the last five years, reports of counterfeit components have increased exponentially. In 2008, export of fake ICs accounted for more than 8% of global merchandise trade which is equivalent to lost sales of $6 Billion.

The Problem:

Counterfeit electronic components are not a new phenomenon, but China’s new export laws have resulted in an explosion of counterfeit parts hitting the electronics market worldwide. Counterfeiting of semiconductors has been on the rise, potentially impacting the reliability of a wide variety of electronics systems used by consumers, business, and governments. The SIA Anti-Counterfeiting Task Force (ACTF), established in June 2006, has been working on a variety of fronts to stop counterfeits from entering the marketplace. The most common counterfeiting problem is remarked product. The counterfeiter scrapes off the mark from the package and puts on a new mark – perhaps a different brand, speed or a different part number – and passes the semiconductor off to an unwary buyer. In some cases, such as an empty semiconductor package containing no chip inside, the system would fail before it left the factory. In cases where the wrong chip was inserted in systems that were designed for a chip of a different speed or warranted to operate at a wider temperature range, the failure may not occur until the system is deployed.

How large is the problem?

It is an Industry-wide, global problem. Since 1982, the global trade in illegitimate goods has increased from $5.5 billion to approximately $600 billion annually. Approximately 5%-7% of the world trade is in counterfeit goods. Counterfeiting and piracy cost the U.S. economy between $200-$250 billion per year, and has contributed to the loss of approximately 750,000 American jobs. Source: FBI estimates. Current value of counterfeit components is between $1 and $10 billion annually. Most counterfeit cases are not documented – volume too large. U.S. companies suffer $9 billion in trade losses due to international copyright piracy. Counterfeiting poses a threat to global health and safety. Counterfeiting poses a threat to global health and safety. (Source:IACC, FBI)

The Solution:

A Counterfeit IC Detector is a product designed to provide a means for IC purchasers to verify that the components they are purchasing are actually the components they have ordered and not remarked components in a similar package. Intended to be sold to electronics manufacturing companies for use in their goods inwards departments for sample testing. Other customers may also include electronics components suppliers who will introduce SENTRY as part of their quality assurance program. The product will be very simple to use and enable any goods inward operator to work with the equipment. It will use complex Pin-Print Test Analysis that will all take place in the background and the operator will only see a simple “Good Device”, “Blank Device” or “Fail Device” message.

The ABI Electronics’ Sentry Counterfeit IC Detector is the solution!

Coming in a desktop case with separate interchangeable PCBs for accepting the ICs under test, ABI Electronics’ SENTRY counterfeit IC detector tests integrated circuits in DIL, SOIC, PLCC, QFP, and BGA packaging. The device uses Pin-Print test analysis that takes place in the background, and shows a “Good Device”, “Blank Device”, or “Fail Device” message. The instrument is controlled by a PC via USB using custom designed software, and has its own power supply with on/off switch and status LEDs. The product contains 128 channels, which can be extended to 256 channels by purchasing 64 additional channel modules. The unit can print out detailed results reports of tested ICs, which can be saved to provide trace-ability as part of your quality assurance program. (Phil Vogel - BDM)