Component December 17, 2019
Counterfeit electronic components: their impact and how to minimize their affect

Counterfeit electronic components: their impact and how to minimize their affect

In every industry, you will find the plague of counterfeit products.  These products invariably infiltrate a marketplace and cause performance and security issues, but they also continually affect the economy.
Recent reports have revealed the following statistics:

  • Industrial and consumer businesses lose nearly $250B USD every year.
  • The automotive industry loses $3B USD in sales annually.
  • The semiconductor industry alone loses $75B USD in sales annually.

It’s no secret that most of these counterfeit parts are coming out of China, but why?  According to Recycling E-waste, there are around 2.6 million tons of electronic waste produced each year in China and around 600 million tons of e-waste produced globally.  87% of the waste is shipped to Asia, and 90% of that waste is shipped directly to China.  This leaves China with hundreds of millions of e-waste and very little regulation of how to handle it.

The U.S Federal Bureau of Investigation estimated that distributing counterfeit parts is 900% more profitable than distributing narcotics.  Knowing this, one might assume that the criminals are at risk of extreme penalties for distributing these parts but that is not the case.  If a conviction is reached, the punishment is typically only a monetary penalty and a few months in prison.  The minimal risk and high rewards involved in distributing illegitimate parts is exponentially driving the counterfeit industry.

At Aegis Components, our systems and processes allow us to ensure that quality is constant.  The first step in assuring quality product is a good vendor management system.  Each of our vendors have undergone a rigorous approval process and are constantly evaluated.  New suppliers are approved by management on a case by case basis and only after successful completion of our vendor application.  Secondly, we leverage a network of experienced, reliable and verified testing facilities to offer our customers an unbiased assessment.  We are sourcing specialists and leave the testing to professionals while we focus on helping you streamline your purchasing and creating secure procurement channels.

Performing supplier evaluations and testing our parts is a great start, but we believe quality assurance must be applied at every level of operations.  To consistently ensure component authenticity and maintain cost efficiency, we center our operations around diligence and attention to detail.  If you’re tired of unpredictability and you are looking for an honest, reliable supplier, we invite you to contact us.


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