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07 July 2021
The Global Chip Shortage Has Created a New Problem: Counterfeits
The global chip shortage is officially wreaking havoc.
The world's biggest carmakers, including Toyota and Volkswagen, have had to slow down vehicle production, and Samsung - who make their own chips - has had to delay the launch of several smartphones due to be released in 2021.
These are but a few examples of thousands of cases where the global chip shortage is wreaking havoc with manufacturers.
But that’s not all - the global chip shortage is creating a new problem: counterfeit components.
The issue is simple: chip manufacturers can’t make enough chips which has given counterfeiters a golden opportunity to plug the gap.
A counterfeit part is an unauthorised copy, imitation, substitute, or modification of an original component.
Counterfeit components are illegal and should not be used under any circumstances, but counterfeiters don’t care. They defraud you and hope you don’t notice. And if you do, there is virtually no chance of getting your money back.
With no accountability, counterfeiters are having a field day.
A sophisticated criminal enterprise
The counterfeit electronic components industry is a multi-million pound industry. It has become sophisticated and impossible to shut down.
Criminals are taking advantage of weakened supply chains, inadequate quality control processes and inadequate reporting to flood the market with illegal components. They are praying on weaknesses and desperation to profit.
Counterfeit chips can look like the real thing, but worse still is they can also perform similarly during basic benchmarks and tests. This allows the most sophisticated components to penetrate manufacturing lines.
The risks of using counterfeit components include:
- Financial loss
- Reputational damage
- Loss of customers
- Refunds and regulatory fines
- Bribery from criminals
- Poor and dangerous product performance
How we can help you avoid counterfeits
We provide industry-leading chip testing to catch counterfeit goods. We have ISO 9001:2015 certification and ESD qualified staff. We have several anti-counterfeiting technologies available including a SENTRY machine, die testing and decapsulation testing.
We specialise in the procurement and delivery of electronic components for a wide variety of industries from the world's leading manufacturers.
If you work with us as your electronic components distributor, you can avoid the issue of counterfeit chips and components for good. We have standard anti-counterfeiting policies and all the components we supply have a guarantee.
If you are still exploring your options, here’s some general advice:
- If it is too good to be true, it probably is
- Make sure any guarantee is worth the paper it is printed on
- Look for ISO 9001:2015 certification
- Demand testing prior to all deliveries
- Only work with suppliers who have an anti-counterfeiting policy
- Beware of spoof companies that pretend to be someone they are not
- Consider staff training to identify when something isn’t right with suppliers
If you are concerned about counterfeit components in your supply chain we are happy to provide advice. Call us on 01904 415 415 for a chat with our experts. The chip shortage does not have to affect your supply chain with our help.
