Counterfeit Components

Avoiding Counterfeit Products

The influx of counterfeit semiconductor product entering the supply chain through the "broker market" has created a serious risk to the quality and reliability of products and systems manufactured by companies who purchase these products. Counterfeit semiconductor products, largely coming from China, have made their way into almost every segment of the industry, from high reliability products used by the military, to commercial grade consumer products. Products sold through the broker market no longer carry the Original Component Manufacturers (OCM) warranty. Nor do they have a Certification of Conformance (C of C), an industry recognized document of "authenticity", providing traceability back to the OCM. Companies buying products without a C of C, providing traceability back to the original OCM, run a high risk of receiving counterfeit products in today's market.

XTREME Semiconductor, a company recognized for its creative solutions to industry problems, has developed a process called Certified End-of-Life (EOL) Product. This process helps customers mitigate the risks associated with receiving counterfeit semiconductor products. All Certified EOL Product go through a multi-faceted product validation plan prior to actually accepting the product from the broker.

The price associated with combating this industry problem may be considered by some to be high, but the price of inaction can be catastrophic. Companies buying product in the broker market risk bearing the financial burden of receiving counterfeit product, which can amount to many times the original purchase price. Without taking action to mitigate their risk, they are jeopardizing their own quality reputation should any counterfeit product make its way into their finished assemblies or systems.

XTREME Semiconductor collects data on all lots processed through their Certified EOL Product process. The data confirms that the process works in identifying and weeding out counterfeit product. During 2007 and 2008, XTREME Semiconductor identified and rejected Sixty-nine (69) lots of material as counterfeit. On average, 30-35 percent of the lots processed through the Certified EOL Product process were rejected. An additional 10-20 percent of the lots were rejected during the quoting process, where photos of product markings are examined for authenticity and a visual inspection is performed. Typical reasons for a lot rejection is visual anomalies, date code issues or because the product is determined to be used or refurbished. Doing your research prior to making any purchase from the broker market is a must. Always request pictures, confirm lot date code and product marking information and, if possible, try to determine the End-of Life (EOL) date of product prior to making your purchase". Gathering this information prior to making your purchase can save you time and money.

Download our 24-page PDF presentation on our counterfeit component consulting services.

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