How can distributors strengthen their testing processes as the risk of counterfeit goods rises?

By removing the external package from the semiconductor and exposing the semiconductor wafer or die, brand logos, trademarks and laser die etching can be examined microscopically to determine authenticity.

When the supply of electronic devices is tight, the risk of purchasing counterfeit components always increases. According to ERAI, which collects counterfeit data, between 2021 and 2022 - the peak of an unprecedented shortage of semiconductors - reports of suspect or substandard parts increased by 35 percent.

Remarkably, global semiconductor sales are flat over the same period.

In fact, counterfeit components are ubiquitous in the electronics supply chain. One of the most common scams is the relabeling (or "blacking out") of ordinary or even sub-standard components as higher-priced, more reliable devices. Although the parts are genuine, they may fail in high-voltage environments.

Analog ICs, programmable logic ICs and microprocessor ICs are the most common targets for counterfeiters.

During chip shortages, the need for component testing increases significantly, despite costs of up to $2,000 and delays in the process. Testing is often outsourced and can damage sample equipment. So for a portion of the distribution market, testing capabilities make them a trusted source of supply.

Independent, non-authorized distributors source component manufacturers, OEMs, EMS suppliers and other organizations selling excess inventory from the open market. Components that cannot be traced back to the factory; arrive in open or damaged packaging, or are heavily discounted may be counterfeit. Strict quality control (QC) has become a top priority for top independent distributors.

However, as the shortage continued, testing created a backlog of orders. Last year, independent distributor Fusion Worldwide acquired a Singapore-based testing facility. Another independent company, Sourceability, has built testing labs at each of its four global warehouses. sourceability CEO and founder Jens Gamperl says testing has been the standard operating procedure since the company's inception in 2015.

"The trend is shifting to independent distributors, who are often confused with traders," he noted. "They are clearly two different things."

"Brokers are opportunistic organizations that buy low and sell high during supply disruptions and are known to set up store, take orders; then disappear after payment. They are a common source of counterfeit parts." ERAI found a spike in reports of suspect capacitors over a five-year period, including severe shortages.

Trust but verify

One of the biggest challenges on the open market, based on the source of the components, is that the parts are genuine but are being relabeled as something else.

"Counterfeit products come from different sources, and what we occasionally see is that the manufacturer doesn't believe the product meets their level of quality, and they send it to a destruction facility and lose the shipment along the way."

Even products that can be traced back to the manufacturer can be verified by brand, part number, packaging, date code and size.

performed on components purchased from authorized distributors who come directly from the component factories. Opened packages, resealed packages, cut tape or 3rd party packaging are checked for sourceability. Acceptable quality level sample checks are performed on quantities received, using a variety of microscopy options to verify conformance.

"For shipments we can't trace back, we always perform specialized equipment checks," which come from independent distributors, contract manufacturers/other surplus channels and traders. Durability testing of markings on parts - with destructive solvent tests (heated solvents) to detect epoxy-based black skins.

The equipment is also analyzed by X-ray fluorescence (XRF), tested for solderability and chemically opened.

"This usually means we have to remove the package, go deep into the chip and look at the wiring by X-ray." By removing the external package from the semiconductor and exposing the semiconductor wafer or die, brand logos, trademarks and laser die etching can be examined microscopically to determine authenticity.

These tests can damage samples, but some customers in the automotive or defense industries will not accept shipments without seeing the test results first.