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The Top 5 Most Counterfeited Chip Types According to IHS

By - Source: IHS | B 17 comments

Market research firm IHS has released a list of the most likely chips to be pirated.

According to the company, analog ICs account for 25.2 percent of reported incidents of counterfeit semiconductors, followed by microprocessor ICS with 13.4 percent, memory ICs with 13.1 percent, programmable logic ICs with 8.3 percent and transistors with 7.6 percent. The annual "risk" of counterfeit products in these segments is about $169 billion, IHS estimates.

In a vertical analysis, counterfeit analog ICs are most likely to be found in wireless (29 percent of all counterfeit analog ICs), consumer (21 percent) and compute (14 percent) applications. Counterfeit microprocessors and memory ICs end up commonly in computers (85 percent and 53 percent share, respectively).

“There has been a great deal of focus on the issue of counterfeit parts in the defense industry, but the majority of reported counterfeit incidents are for commercial components which have broad use across both military and commercial applications,” said Rory King, director, supply chain product marketing at IHS. “Take analog ICs, for example. One out of every four counterfeit parts reported are for analog ICs—components which are used in everything from industrial and automotive situations to wireless devices, computers, or consumer electronics. A single counterfeit could impact end products in any of these markets and the potential problem is pervasive, amounting to billions of dollars of global product revenue subject to risk.”

IHS warned that counterfeit products represent a significant risk for the user. “A faulty counterfeit analog IC can cause problems ranging from a mundane dropped phone call to a serious tragedy in the aviation, medical, military, nuclear or automotive areas,” King noted. “Furthermore, the excessive cost of rework, repair, and customer returns for component failures is significant."

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Top Comments
  • 23 Hide
    bjaminnyc , April 5, 2012 1:16 PM
    Sorry I'm late boss, for some reason my alarm clock only off goes off when Yao Ming makes a free throw.
  • 18 Hide
    saxplayingcompnerd , April 5, 2012 4:23 PM
    YO TOMS, YOUR PHOTO ZOOM SUCKS MASSIVE BALLS.
  • 15 Hide
    freggo , April 5, 2012 2:34 PM
    It's like buying a Rolex from a guy in a back alley. You get what you pay for.
    Remember, if it sounds too good to be true it prob. comes with a nasty catch.

Other Comments
  • 14 Hide
    Murissokah , April 5, 2012 12:22 PM
    Wonder where those come from...
  • 13 Hide
    willard , April 5, 2012 12:43 PM
    MurissokahWonder where those come from...

    Typically China. A few years back the Air Force bought a ton of chips which turned out to be counterfeits from China.
  • 2 Hide
    mitunchidamparam , April 5, 2012 12:47 PM
    china those guys are bad
  • 23 Hide
    bjaminnyc , April 5, 2012 1:16 PM
    Sorry I'm late boss, for some reason my alarm clock only off goes off when Yao Ming makes a free throw.
  • 8 Hide
    iamtheking123 , April 5, 2012 2:08 PM
    Quote:
    Wonder where those come from...

    They come from "kitchen table" chip brokers who get them from China. Then the pentagon/contractors purchase from them because of federal rules encouraging "cheap and disadvantaged" suppliers ie people in their basements ordering their "stock" from ebay. Controls are already in place to ensure tracking of components from the factory through the distribution chain to the end user. It's only when companies take shortcuts that counterfeits slip in.
  • 15 Hide
    freggo , April 5, 2012 2:34 PM
    It's like buying a Rolex from a guy in a back alley. You get what you pay for.
    Remember, if it sounds too good to be true it prob. comes with a nasty catch.

  • 3 Hide
    Anonymous , April 5, 2012 2:58 PM
    more likely some insiders in fabs either get their hands on reject die or extra wafers slipped into the run and unaccounted for.
  • 4 Hide
    iceman1992 , April 5, 2012 3:25 PM
    chinese copycats
  • 18 Hide
    saxplayingcompnerd , April 5, 2012 4:23 PM
    YO TOMS, YOUR PHOTO ZOOM SUCKS MASSIVE BALLS.
  • -1 Hide
    blazorthon , April 5, 2012 5:28 PM
    What, you mean that $1000 LGA 775 SB-E i7-3960X I bought on Ebay isn't really a six core performance monster?
  • 2 Hide
    punahou1 , April 5, 2012 5:36 PM
    Wasn't Mexico a culprit just a few years back?
  • 3 Hide
    eddieroolz , April 5, 2012 5:45 PM
    These chips come from a lot of places but I think China is a bit player in this.
  • 0 Hide
    TwoDigital , April 5, 2012 6:57 PM
    I was hoping "potato" was on the list. I can't remember the last time I bought a chip from a guy who had seen 'em fall out of a truck and was selling them out of his trunk.
  • 3 Hide
    A Bad Day , April 5, 2012 9:10 PM
    "Uh Bob, the 1,000 chips we need to buy are priced at $10 per chip, but there's a cheaper source for only $7."

    "BUY IT NOW!"


    Such event turns into a false economy situation when the chips start failing left and right.
  • 0 Hide
    Sonny73N , April 6, 2012 10:17 AM
    What?! Didn't you people know that nowadays everything is made by China? Duh!
  • 0 Hide
    neon neophyte , November 7, 2012 8:55 PM
    many of this chips are probably made in what is known as a "midnight run." good chance there is no difference between the counterfeits and the originals. They are produced at the same facilities in off hours. Sometimes the materials that are used are questionable though.