Anticounterfeiting
Curbing Semiconductor Counterfeiting
Counterfeiting of semiconductors has been on the rise, potentially impacting the reliability of a wide variety of electronics systems used by consumers, business, and governments. The SIA Anti-Counterfeiting Task Force (ACTF), established in June 2006, has been working on a variety of fronts stop counterfeits from entering the marketplace.
The most common counterfeiting problem is remarked product. The counterfeiter scraps off the mark from the package and puts on a new mark – perhaps a different brand, a faster speed, or a different part number – and passes the semiconductor off to an unwary buyer. In some cases, such as an empty semiconductor package containing no chip inside, the system would fail before it left the factory. In cases where the wrong chip was inserted in systems that were designed for a chip of a different speed or warranted to operate at a wider temperature range, the failure may not occur until the system is deployed.
SIA ACTF Activities
The SIA’s ACTF has developed a multifaceted program to deal with this challenge that includes work at the international and domestic levels.
WSC Recommendations
The SIA is part of the World Semiconductor Council that includes the industries from Europe, Japan, Korea, Chinese Taipei, and China. The WSC’s 2008 joint statement includes several paragraphs related to the counterfeiting issue:
”Counterfeit products are an increasing problem throughout the world and the semiconductor industry is no exception to this growing threat. Semiconductor product counterfeiting is a serious and growing risk for the world market. In a recent joint custom's operation 360 000 counterfeit ICs bearing over 40 different trademarks were seized at a handful of border controls over a three week time frame. The impact goes beyond IP or trademark infringement of semiconductor companies. Together with an increase in the number of semiconductors being used in an end-product, proliferation of counterfeit semiconductor product in today's market creates risks to the safety and health of the consumer.
“The WSC encourages [the Government Authorities Meeting on Semiconductors] GAMS Members to work with their countries’ semiconductor industry, traders and customers, associations, and government agencies to promote better communication in the fight against semiconductor counterfeiting. As the recent anti-counterfeiting initiative shows, coordination among semiconductor industries and GAMS Members can provide an effective first response to the global counterfeiting operations. WSC encourages this kind of inter-governmental coordination. The WSC is committed to strengthened IPR enforcement that results in increased protection of consumers around the world.”
The WSC recommendations are discussed every year by the WSC regions’ governments and authorities. This provides an opportunity for further discussion on the deleterious consequences of counterfeiting.
RECS
Since many of the counterfeits originate in China, the Chinese government must be part of the solution. China recognizes the dangers from counterfeiting. Counterfeit chips are more likely to find their way into electronic systems in China than in the U.S., so the costs from unreliable products are greater. The negative publicity surrounding lead in Chinese made toys makes it particularly important that China not also be perceived as the source of unreliable and dangerous electronics products.
China’s Ministry Information Industries, China Quality Management Association for the Electronics Industry, and the China Electronics Purchasing Association have launched a Reliable Electronic Component Supplier (RECS) program. This program will issue certificates to reliable suppliers. A number of SIA companies have joined RECS, but ultimately the program will only work if Chinese suppliers participate, and cost is currently a barrier.
Authentication Service Providers
SIA is working with the SEMI International Traceability Committee on a standard that would encourage the use of authentication service providers. Under this system, manufacturers would put an encrypted “license plate” on labels attached to each box or tube of chips. Any potential purchaser (broker, distributor, final customer) could use the internet to ask if others had asked about a box’s “license plate” number. If there were 100 inquiries, the purchaser may decide the box might be counterfeit and not buy the box.
Customs and Law Enforcement
The SIA worked with the U.S. Customs and Border Protection to raise awareness among customs officers and within the industry on the semiconductor counterfeiting problem. As a result, the U.S. and European customs authorities launched “Operation Infrastructure” late in 2007, resulting in the seizure of over 360,000 counterfeit ICs that were destined for U.S. and European markets.
Customer Education
Counterfeits can be avoided by purchasing directly from the manufacturer or from authorized distributors. SIA has worked with Rochester Electronics to issue a directory of authorized sources to assist customers who have concerns that counterfeits may otherwise enter their supply chain. See: http://www.authorizedcomponents.com/index.html
