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AERIRobert Hammond, President
© 2012 AER, Inc.
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Counterfeit Electronic Components in the Medical Equipment Supply Chain
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The ProblemThe e-waste of the world is being shipped in masses to developing countries. The labor market is so inexpensive that the scrap can be disassembled and refurbished for a very low price. Then it is redistributed through organized crime.
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The Defense Industrial Base Assessment on Counterfeit Electronics prepared by the U.S. Department of Commerce showed that the amount of counterfeit incidents more than doubled from 2005 to 2008. The respondents cited they encountered 3,369 in 2005 to 8,664 in 2008. This survey only shows the tip of the iceberg.
In February of 2008 Reuters reported that United States and European Union officials, in a joint operation, seized over 360,000 counterfeit items. The products consisted of integrated circuits and computer components worth an estimated $1.3 billion. Officials stated that the traffickers and counterfeiters have become much more sophisticated.
On October 8th, 2009, broker MVP Micro (aka RH Distributors, Red Hat Distributors, Labra Electronics) was indicted on 11 counts related to selling and creating counterfeit electronic components in Southern California. Some of the components were sold directly to the NAVY and other high reliability manufacturing companies.
On September 14th 2010, broker VisionTech’s owner and an employee were indicted in connection with sales of counterfeit electronic components destined to the U.S. military and other industries. It was a 10 count indictment including conspiracy, trafficking in counterfeit goods, and mail fraud. The indictment alleges they imported counterfeit integrated circuits from China and Hong Kong and sold them to the U.S. Navy, defense contractors and others, marketing some of these products as“military-grade.”
In 2011 the US Senate Armed Forces Committee began an investigation into the counterfeit electronic component problem. An examination of DOD supply chain transactions in 2009 and 2010 revealed 1,800 cases of suspect counterfeit electronic parts representing more than one million individual parts.
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Counterfeiting is Widespread
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September 2012 AERI Detections
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How They Do ItThe pictures below show how the laborers remove the parts from boards and sort them by size, type of chip and maker. It is a very dirty business.
1. Re-labeling to Unify Date and lot code, manufacturer or part number. Most common method at this time.
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6 Methods of Creating a Counterfeit
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2. Repackaging of die from another package. Decapsulation, bond wire plucking, die removal, and repackaging.
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6 Methods of Creating a Counterfeit
3. Scrap salvaging by component manufacturer employees and e-waste companies. Large scale cases documented by AMD, STMicro, 3M and Seagate.
4. Overruns by employees during off hours. Parts not properly tested.
5. False documentation to represent parts as higher grade or compliancy to RoHS standards.
6. Illegal manufacturing of copies. Most common in low cost passive products.
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6 Methods of Creating a Counterfeit
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Part Search Engines/Real Inventory?
In this example, the suppliers with the desirable quantities are known to sell poor quality and/or counterfeit components. Note: This is a military part number and there are many Chinese distributors that display large quantities available.
Perform a thorough background check on all new suppliers.
1) Application of an extensive supplier approval form and process.
2) Verification of address – confirm location is a legitimate place of business.
3) Investigation of industry related memberships and/or quality certifications
4) Check at least 3 references – determine number and size of transactions and evaluate legitimacy of references given.
Eliminate all non-franchised distributors in China from AVL. The Chinese government controls the franchise channel leaving the open market with all of the low quality and used parts.
Request verbally and in writing that suppliers do not supply parts from China.
Track and eliminate suppliers who provide counterfeit components.
Check known part history with each new customer requirement for it’s counterfeit status on the ERAI counterfeit database.
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I.D. Purchasing Steps
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I.D. Purchasing Steps
Track all supplier history and use a rating system whichencourages purchasing from the best suppliers.
Quality control technicians must be thoroughly trained in counterfeit
detection. There are numerous conferences, publications and now,
the ability to be trained and certified to the IDEA-STD-1010-A
standard through the IDEA-ICE-3000 exam process.
Onsite use of microscopy, X-ray, XRF,
de-capsulation, curve trace, solderability
testing, and moisture baking
during the QC process.
Forged relationships with test
facilities for full electrical testing
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Quality Control
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Tools for Detecting Counterfeits
1. Access to all datasheets (obsolete)2. MIL-STD-883 Method 2015 solution 3. Acetone4. Razor blade for scraping surfaces5. Micrometer6. Microscope with built in camera7. Bar code reader with simple software8. De-capsulation device9. Curve Tracer10. X-Ray equipment
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Detection using Mold Cavities
Examining the indents is one of the most important techniques in detecting counterfeit components. The counterfeiters have a very difficult time keeping the indents clean and consistent during their refinishing process. When sanding off the part number the depth changes. Blacktopping the parts often fills the cavities. The undersides should be alike.
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Countries of Origin
Most parts, which are large enough to write a country of origin, display where it was manufactured somewhere on the part. It is commonly placed in the indents, but it can be written anywhere on the part. We have questioned the component manufacturers and all of them say that a part with the same lot code as another cannot be manufactured in different countries.
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Texture
Plastic Electronic Components are typically made with a mix of fine glass and plastic. The surface of the molded package is textured when it is removed from the mold. The counterfeiters have come up with a very good mixture to create a similar surface on top of the original surface. With the naked eye it is almost impossible to determine the difference between the original surface and a fake surface. By taking a close look through the microscope there are many signs that can help you determine the authenticity of a component.
Resurfaced with Natural with Sandblasted orbubbly texture gritty texture Acid Etched
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Texture Examples
Often if you look at the edge of the parts you can see the change in texture from the blacktopping. The top of the part, where it has been blacktopped, is shiny and the side of the part has a duller finish.
The natural plastic and glass mixture does not come off of the surface with acetone.
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Acetone/Blacktopping
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The counterfeiters are getting more sophisticated every day. Due to an increase in returns they have now come up with blacktopping materials that withstandacetone. A sure test is to scrape the bottom of the part to see if it behaves the same way as the top when scraped. The same part’s underside plastic (to the right) just received scratches. There was no flaking like the top which was blacktopped.
Top Bottom
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Razor Blade/Blacktopping
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Decapsulation
Decapsulation is a very valuable tool for parts you are having difficulty determining authenticity. After performing all of the simple non destructive tests the part may be opened and the die can be verified. This does not guarantee all of the parts in the lot are the same, but it is a useful tool and is much cheaper than electrical testing.
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X-ray is very helpful in combination with decapsulation. Once a part is opened up and the die is verified the balance of the parts can be inspected using x-ray to confirm that the die is consistent throughout the lot. In this case the parts all had the same markings and lot code on the outside of the package, but inside there were obvious anomalies.
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X-Ray
Limitations of physical characteristic testing;
Parts may be re-manufactured or factory rejects in, what appears to be,authentic packaging
No conclusive identification information on the die once decapsulated
Therefore some electrical analysis is helpful in determining authenticity. Although full datasheet testing is highly recommended for high reliability applications, a simple curve trace on each lead is a very effective way to begin an electrical examination of the parts. A “known good” component is required.
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Curve Trace
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Counterfeiting is widespread
Audit your current supplier’s facility and counterfeit avoidance strategy
Increase your counterfeit detection capabilities
Electrically test all parts for high reliability applications if not purchased from Authorized Distribution
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Conclusion
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Qualifications
18 years in business
AS9120 Certified
ISO 9001:2000 Certified
ESD/ANSI S20-20.1999 Certified
IDEA Founding Member
ERAI 13 Year Member
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