Front End | Electronic Components Supply Network
electronic components are usually made available at prices signifi cantly higher than market pricing, driven by product scarcity when the IP holder for whatever reason, is unable to meet the current market demand. Until quite recently the Chinese counterfeit electronic components industry was led by “mom & pop” operations that typically targeted military and aerospace customers who require highly specialist components in very small volumes. But the last twenty years or so have seen a massive rise in ‘Professional Commercial’ counterfeiting operations in China. It’s estimated that the country is responsible for producing >99 per cent of the counterfeit electronic components available to the market today.
Often initially established by Western- based technologists who simply needed a high-volume sub-contract manufacturing source in a signifi cantly lower labour cost area compared to the EU or USA., commercial counterfeiting companies in China are typically large and highly organised and give employment to hundreds of highly trained personnel across many technology disciplines. They are remarkably pro-active, and the type of counterfeit electronic components
they make available to the market at any point in time tends to be closely linked to supply and demand cycles in the global semiconductor market. Their output is usually remarkably good, passing demanding OEM test procedures and operating to data sheet specifi cations for the predicted lifetime of the end equipment.
All counterfeit electronic products impinge on the Intellectual Property rights of the organisations that designed them and negatively impact their revenue streams, and therefore on their ability to re-invest. The burden of stopping the proliferation of counterfeit electronic components largely falls on the original IP owner, but all companies in the supply network have a part to play. Bad and good counterfeit electronic components can cause the original components manufacturer - and the OEMs that use them in their end-product - untold reputational damage. All counterfeit operations are driven by demand: Eliminate that “demand pull” and their market all but evaporates. But this will only be achieved once all responsible purchasing organisations in the electronic components supply network - when made an offer that sounds just too good from outside of
their trusted supply network – just say: “No.”
Further information CIE readers who would like to learn more about counterfeit avoidance may wish to review the information held by the Anti-Counterfeiting Forum www.
anticounterfeitingforum.org.uk or attend the SMTA – “Counterfeit Electronics and Material Symposium” at
https://smta.org/events/EventDetails. aspx?id=1665471&group=
For information
Adam Fletcher is chairman of the Electronic Components Supply Network (ecsn), a business association established in 1970 that today offers support to all organisations with an interest in electronic components throughout their entire lifecycle. He is also chairman of the International Distribution of Electronics Association (IDEA), an association of individual country electronic components associations whose objective is to arrive at and share industry best practice.
“…Promoti ng Positi ve Collaborati on Throughout the Electronic Components Supply Network to Benefi t Members and the Economy…”
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