Tuesday, June 22, 2010

Counterfeit airplane electronics? Coming from Guess Where? Yeesh

Counterfeit electronics from China are flooding the global electronics supply chain -- you know it, I know it, the U.S. Department of Commerce knows it. It's a story we've seen in the electronics industry news again and again and again and again.

And so, again. This time, from Bloomberg Businessweek:


Chinese producers, with the aid of organized criminal networks, control the $8.2 billion European market for designer-clothes knockoffs, fake electronics and uninspected airplane parts, the United Nations says...“There are a dramatic number of counterfeits in manufacturing,” [Antonio Maria Costa, director of the UN Office on Drugs and Crime] said. “When we climb on a plane, there is a risk that some of parts have been pirated and therefore don’t meet specifications.”

Have we really have we come to such a pass? What is going on? The editors at the UK's Aviation-Database.com have a clue:

Obsolescence in electronic systems design has prompted a market in counterfeit electronic components which appear genuine, but which actually are substandard, altogether different, or in the worst cases, simply empty packages. Counterfeit integrated circuits (ICs), capacitors, amplifiers, batteries, connectors, power-management devices, and other electronic parts already are making their way into mission-critical military and aerospace systems, some of which depend on the utmost reliability.

Some of these electronic components simply begin life as manufacturing overruns. Some come from well-meaning manufacturers who believe they have equivalent parts. Others come from unscrupulous shops seeking to exploit a hot market and a trusting set of buyers.


So, what to do? As we've reported on this website, counterfeit avoidance demands 'zero tolerance' policies. Along those same lines, the folks over at the website of American Electronics Resource have posted a remarkable article featuring a series of detailed images, regarding detection of counterfeit electronic parts through a process of microscopic visual inspection.

And thankfully, manufacturers and distributors aren't on their own in combating this problem.As was reported this past March in IHS's Aviation and Defense Industry Trends newsletter, last year, SAE International released its first-ever standard designed to help companies ensure they are procuring and installing legitimate electronic parts rather than counterfeit ones.

The standard, "AS5553, Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition," was created at the behest of NASA, which is concerned about the rising number of counterfeit electronic parts in the supply chain. The document is aimed primarily at companies in the aerospace and defense industry, and has since been adopted by the U.S. Defense Department.

"The problem is, things like aircraft and certain spacecraft like the space shuttle have such long lives that the companies that originally manufactured the parts often go out of business or no longer make the parts," noted Bruce Mahone, director of Washington operations, aerospace, for SAE International. "So you can't buy directly from the manufacturer or from one of his authorized distributors. You end up going to a broker who basically buys up old parts."

We'll continue to cover this story at Interconnection World, and here's hoping the U.N. and the Federal Government will continue to do their jobs in an effort to rectify -- not to say eradicate -- the problem.

Meantime, if you happen to be sitting gateside, waiting to board your flight, and reading this...sorry about that.

7 comments:

  1. Time for China, Inc. to start paying tarrif and surcharge to U.S. Govt. to ship product in to the USA with China Govt. subsidized factories and poor ethics.

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  2. A broker does not buy up and stock old stock. A surplus dealer does. A broker acts as a middle man between a buyer and a seller, just like in real estate. Surplus dealers have and do offer a great service to the industry. The majority of surplus dealers pay close attention to what they buy and what they offer for sale, with very good quality assurance programs in place.

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  3. I design high-temperature electronics and must often use brokers to locate batches of obsolescent IC's. Our policy is to X-ray a sample before we accept the shipment (usually from Asia). We compare the radiograph to an archived image of a "known good" part. If the die size and the bond pads (on the die) do not match, then we reject the order. We will do 100% X-ray inspection on all the incoming parts if the order is accepted. We have found parts on the beginning and end of a reel to be legitimate, with the ones in the middle being bogus!

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  4. Unbelievable! That is as fascinating as it is horrifying...almost.

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  5. I have a non-renewed patent which solves most of these counterfeit sourcing problems using a special type of RFID tag -- patent 5,469,363.(vintage 1995) -- The RFID industry should jump on this as one component of handling this ever increasing criminal activity. Tom

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  6. Tom,

    Is this it?

    http://www.patents.com/Electronic-tag-source-certification-capability-5469363.html

    It sounds like it would work. Your comment led me to this article: http://www.sciencedaily.com/releases/2009/11/091118160627.htm

    Why hasn't RFID tagging technology been more widely used to combat electronics counterfeiting?

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  7. Our company also was burned by a broker. We did detailed first article testing, which passed, then the rest of the order turned out to be counterfeit. Since it took a long time for us to figure out which part was failing, by the time we got back to the broker it was "too late".

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