How Chip Counterfeits Are Getting More Sophisticated

Despite the quality assurance and rigor of semiconductor standards, the industry is still prone to counterfeiting, which can only have detrimental effects the longer it continues.

There are various elements that should provoke electronics buyers and manufacturers to dig deeper into the procurement process to uncover any potential blemishes in products they wish to purchase. With shortages afoot in some areas of the PCB market and abundances in others, the fast-paced nature of procurement can lead companies astray in difficult times, and the focus should be placed on quality assurance measures. 

The industry’s outlook on counterfeit products is promising, especially with cases falling significantly over the past few years. In 2019 there were 963 cases of parts counterfeiting reported, while in 2020, there were 504. This is said to be related to the coronavirus pandemic, which hindered counterfeit efforts among Chinese companies, but it still remains a problem today.

What Is a Counterfeit Chip?

Counterfeit chips can be made in three different ways: by altering existing units from reputable manufacturers, acquiring second hand parts from electronic waste (e-waste) or remanufacturing parts that have failed rigorous testing. 

• Parts Alteration: Legal complications arise as companies simply take new components and sell them as their own. Manufacturers sand, re-mark, or ‘blacktop’ chips in order to apply new information, such as date codes. Alternations of this nature are much more difficult to detect and can require ongoing specialist support to ensure that components adhere to IDEA-ICE-3000 counterfeit guidelines.
• Electronic Waste: While this may seem like a useful process to combat declines in semiconductor supply, there is an inherent risk to buyers when purchasing chips of this nature—most likely unknown to them if suppliers of these counterfeit parts will package these as legitimate products. 
• Remanufacturing: Parts removed from existing circuit boards can be taken one step further, which is where we begin to see heightened risks. Some components in the market today are repurposed from electronic waste processes by simply re-marking them as new chips. It can be incredibly difficult to detect whether these parts are legitimate or even function as new parts would. 

How Did Counterfeiting Become a Problem in the PCB Industry?

Simply opportunistic, chip counterfeiting—along with many other PCB components—has been a problem for almost a decade. As the electronics industry continues to grow rapidly, parts counterfeiting is a multi-billion dollar (or perhaps trillion-dollar) industry headache that impacts even the most sophisticated production lines. 

The counterfeit issue has attracted the attention of the National Aeronautics and Space Administration (NASA) for some time as the organization dates the problem back even further. The Office of Technology Evaluation at the US Department of Commerce (USDC) recorded 3,868 incidents in 2005. 

The USDC breaks this down further—data which is shared in NASA’s report, showing 71 companies in its survey had experienced cases of counterfeit microprocessors, 52 had acquired tampered memory units, and 47 had seen both standard and specialist logic circuits affected.

The bottom line is performance and safety of electronics is compromised if components are not assessed to the proper standards. 

The danger to manufacturers in terms of performance is the potential heat and mechanical damage already suffered by reused chips. When it comes to safety, counterfeit components float under the compliance radar—a nightmare for both businesses and regulating bodies that devise the quality standards to be met. 

To understand the scale of the issue, the AS6496 standard was created in August 2014, yet parts seem to slip through the cracks. Recognizing this will allow organizations and authorities to emphasize the various means of catching imposters.

How Do You Spot a Counterfeit Chip?

The true nature of the problem is that it cannot be tackled holistically. As companies become more ruthless with their efforts to squeeze revenue from these parts, the onus is on buyers to know their purchases inside and out. There are various means of semiconductor inspection, but with counterfeiters becoming more sophisticated, parts can still fly under the radar—especially in companies with limited resources to invest in quality assurance measures. 

With some changes invisible to the naked eye, the first stage is perhaps obsolete in the wake of late, but there are solutions that companies can integrate into their processes to ensure they hold suppliers accountable.

• Visual Inspection: The information scored into a chip can be the first telltale sign of counterfeiting. While this is perhaps the most common stage in product development and quality control, it has become increasingly difficult to diagnose repurposing and re-marking. A few things to note are the date stamps, logo, and overall printing quality.
• Scanning acoustic microscope (SAM): A non-destructive testing (NDT) technology used to spot defects. When parts have been repurposed from electronic waste, this method is capable of detecting any cracks, voids, and other imperfections in microelectronic packages. The use of SAM can benefit electronics manufacturers further as a sophisticated tool for quality control.
• X-Ray Tomography: Another means of NDT is X-Ray Tomography, which essentially shows the user the true design of the entire component. 

Tackling the Problem of Counterfeit Semiconductors

The World Semiconductor Council (WSC) is highly aware of the problems caused by counterfeit chips and, as such, has formed its own task force to educate and support organizations with anti-counterfeit activities. 

According to the WSC whitepaper, "Winning the Battle Against Counterfeit Semiconductor Products," many cases of chip counterfeiting are seen in open market purchases, whereby companies acquire parts from unauthorized distributors. The most critical piece of advice from the WSC is to purchase from authorized suppliers. 

Firstly, procuring components from authorized suppliers is the safest way to secure necessary items, but as mentioned in a previous article, shortages and other supply chain challenges force some manufacturers to look beyond the primary chip makers in the industry. Unauthorized distributors come with their own merits, such as small order quantities and shorter lead times, but also present the risk of counterfeit products. 

A quick search through Octopart’s product search helps companies understand where their products are coming from—whether they are authorized or unauthorized sellers. 

Final Thoughts

It is unlikely that the semiconductor could rid itself of counterfeit products, but there are some measures to be considered as this becomes a more intricate problem. 

Firstly, suppliers. Understanding where the parts come from, first and foremost, will reduce the risks for manufacturers. Whether they are authorized or unauthorized will likely determine their intentions to cut corners and repurpose products. 

Secondly, component quality assurance is crucial, and technology is the best solution for NDT. Leveraging SAM and X-Ray testing allows manufacturers to see inside of packaging and catch counterfeit products that have been removed from electronic waste. Visual testing is vital, but only covers a fraction of the analysis. Working with specialist organizations on this will alleviate disruptions to the production line and offer the greatest chances of catching counterfeit parts. 

Finally, managing supplier expectations. Recognizing the dangers to both the supplier and customer in the exchange of counterfeit parts and being open about testing could help whittle down the list of potential providers. It is a long-term strategy and may have been challenged amid supply chain challenges, but transparency is a core element of negotiation that could discourage counterfeiters.