Counterfeit components cost more than US dollars, SIA testifies
The more than $7.5 billion counterfeiting costs US-based semiconductor companies each year is not the biggest loss, according to recent Senate testimony by Brian Toohey, president of the SIA.
Suzanne Deffree, Managing Editor, Online -- EDN, December 1, 2011
US semiconductor companies
face more than
$7.5 billion in counterfeiting
costs each year, but that
loss is not the biggest that this
illegal practice forces, according
to recent Senate testimony
by Brian Toohey (photo), president
of the SIA (Semiconductor
Industry Association).
Toohey aims to aid the Senate’s
investigation into counterfeit
electronic parts in the
DOD (Department of Defense)
supply chain.Counterfeit versions of electronics and semiconductors are well-known threats in the electronics supply chain, and they put the health and safety of both the military and civilians at risk. That threat is growing, the SIA says, especially as microelectronics are finding use in an increasing number of mission-critical applications, such as lifesaving medical devices; automotive-safety systems; airplanes; and the tools, systems, and communications equipment that the US military relies on. “The catastrophic-failure risk inherently found in counterfeit semiconductors places our citizens and military personnel in unreasonable peril,” said Toohey, testifying on behalf of the industry before the Senate Armed Services Committee in November. “A counterfeit semiconductor is a ticking time bomb.”
Speaking about the economic
impact of counterfeit
parts on the electronics supply
chain, Toohey added, “Counterfeiters
violate American
companies’ intellectual-property
rights and cost Americans
jobs. We estimate that counterfeiting
costs US-based semiconductor
companies more
than $7.5 billion each year.”The SIA recommended to
the committee a multipronged approach to effectively curtail
counterfeit electronics. First,
the government should support
and continue partnerships
among the industry, the DOD,
and the DOJ (Department of
Justice) to develop a more
robust and effective authentication
system. The government
should also strengthen
procurement procedures at the
DOD for mission-critical components,
including purchasing
exclusively from authorized
distributors, and ensure that
the industry can fully partner
with CBP (Customs and Border
Patrol) officials to stop suspected
counterfeits at the border
by ending CBP’s redaction
policy. In addition, the government
should aggressively prosecute
counterfeit traffickers
and provide stronger enforcement
of intellectual-property
rights internationally.
“Our industry takes this threat very seriously, and we are committed to doing everything within our power to work with the DOD and other government agencies to stop counterfeits from entering the US and our military and civilian supply chains,” said Toohey. You can view Toohey’s full testimony here.
Talkback
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I think it is easy to sell any thing once you are ERAI member. Terry Lively or probably Kristal Snider from ERAI called us several times to become member, But unfortunately we don't sell fake parts and do not want to share our profit with them. Why do we need protection when we are selling 100% genuine parts.
Though I thank them for offering us membership..
We all know who ERAI is and who is getting benefited out of it.
BROKER - 2011-12-12 14:24:14 PST -
As long as American brokers attached /associated with ERAI with their counterpart Chinese suppliers for fat profit, this menace is not going to stop. American has more than 500 ERAI members who are freely giving a helping hand to corruption in supply chain while procuring from Chinese flea market. Unfortunately there are over 300 Chinese ERAI members are also part of this easy honey and butter trade which fetches multi fold profit. Pirated and counterfeit parts by then would have changed many hands, with plenty of commission and escrow fees to Kristal Snider, Mark Snider , Anne Leise Heinichen, Damir Akhoundov, Terry M. lively who are running this china-america trade network from Naples Florida.
Joe Maxwell - 2011-9-12 12:41:07 PST -
As long as American brokers attached /associated with ERAI with their counterpart Chinese suppliers for fat profit, this menace is not going to stop. American has more than 500 ERAI members who are freely giving a helping hand to corruption in supply chain while procuring from Chinese flea market. Unfortunately there are over 300 Chinese ERAI members are also part of this easy honey and butter trade which fetches multi fold profit. Pirated and counterfeit parts by then would have changed many hands, with plenty of commission and escrow fees to Kristal Snider, Mark Snider , Anne Leise Heinichen, Damir Akhoundov, Terry M. lively who are running this china-america trade network from Naples Florida.
Joe Maxwell - 2011-9-12 12:38:26 PST -
Jeremy - If you are just checking web domains and using personal references to judge broker quality, that is not enough. That says nothing about judging the actual parts. The only things most brokers do today to judge counterfeit are visual only. They do not test the parts on a tester for AC performance and other comprehensive tests. At best, brokers subcontract real tester-based testing and purposely minimize the extent of that testing to keep costs low. Talk to the test houses directly and you will see. Clicking around on web pages isn't going to get AUTHORIZED product. Pick up the phone and talk to an AUTHORIZED source FIRST. While they may not have parts readily on the shelf, they may have AUTHORIZED die/wafer inventory to get you the real part. AUTHORIZED sources have the ability to talk directly to the OEM and may get parts that were previously believed to be obsolete. A web site part search won't tell you that. Until you have exhausted all authorized sources, the job is not done.
Dan Deisz - 2011-7-12 07:34:20 PST -
Guys you are right !, what I was meaning was exactly that !.Brokers are like 2nd hand car dealers !, they are not liked but necessary !, and all you do is qualify them to the max and if the deal is too good ..... then it is !!!. Purchasing officers tend to be people who have little experience and soemtimes absolutely NO KNOWLEDGE of what they are buying and the consequences of their actions !. Alot of these parts are 10+ old and only available through brokers, the customer needs to use a broker who has been either recommended or qualified not just googled!. And alot of the times this can be done with not using gmail/hotmail email accoutns and also checking the web registration details to see where the web site contacts are !! (godaddy !!). Hope this helps !. Rochester is good but only for a SELECT few parts and if they do not have wait for the MOQ and setupfee costs to make it unviable !!.
Jeremy.
Jeremy Panton - 2011-6-12 17:28:51 PST
