EE Times Under The Hood - October 8, 2007 - (Page 58) under the hood: SEMICONDUCTORS www.eetimes.com • www.techonline.com Counterfeit parts, real trouble emiconductor Insights helps other companies protect their intellectual property and document-infringement rights. But we have found—as countless designers have discovered—that counterfeit parts can really put a damper on our business. Indeed, we’ve been seeing more counterfeit devices coming in over the past few years, which could indicate an alarming trend. BY GREGORY A. QUIRK S The counterfeit device had the correct part number on the package but a Samsung die inside.You can see the actual IM Flash Technologies device package markings on the second device. The Samsung die can be see in the third image. In the business of analyzing devices, Semiconductor Insights (SI) purchases thousands of components each year. Sometimes they are bought directly from the manufacturer, sometimes through well-established channels; often they are purchased from other countries, including China. In the past year, SI has seen an increase in the number of counterfeit parts from China. Semiconductor sales are projected to reach $252 billion in 2007, according to the Semiconductor Industry Association. As consumer interest in electronics grows, so too does the volume of counterfeit devices. In consumer electronics, cost is king. Suppliers dealing with counterfeit components are willing to offer them at prices that are lower than legitimate competitors can match. The low prices are very appealing to OEMs, particularly smaller companies that don’t have an agreement The counterfeit device had the correct part number on the package but multiple different dice inside, as can be seen in the various X-rays. with the manufacturer itself. The drawback is that the parts may not function as well as they should. Unfortunately, selling counterfeit parts is relatively easy. Someone buys a bunch of parts. They find out what the customer needs, etch off the current markings, and then restamp the ONLINE • OnDemand seminar: www.techonline. com/underthehood, article ID: 201201791. • After this article first appeared, SI was asked why companies would risk inserting counterfeits into their supply chain. See response at the end of the online version (www.techonline.com/underthehood). 58 Electronic Engineering Times, TechOnline | October 8, 2007 http://www.eetimes.com http://www.techonline.com http://www.techonline.com/product/underthehood/201310284
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