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Reports of Counterfeit Parts Increase 4X Since 2009

According to IHS, the global supply chain reported 1,363 verified counterfeit-part cases in 2011, up from just from 324 in 2009. It was the first time that more than 1,000 incidents were recorded in a single year. Over the past ten years, counterfeiting has increased by a factor of 700.

According to IHS, the bulk of these fake products were reported by military and aerospace electronics firms in the U.S.

"The counterfeit issue is serious, it’s growing and it’s a major problem for electronics makers - especially military and aerospace companies," said Rory King, a director for IHS' supply chain product marketing.

"The problem has grown increasingly hard to ignore, as reports of counterfeits have risen exponentially and most companies lack the awareness and capability to effectively detect and mitigate the growing problem. Now that United States legislation will hold defense suppliers accountable for counterfeit issues, access to these incident data becomes a critical decision-support capability for business systems."

The market research firm said that the fact that military and aerospace industries are especially affected means these fake parts are putting human lives at risk. Counterfeit parts are typically produced with "cheap substitutes or salvaged waste components that fail to meet strict military and aerospace specifications," IHS said. There is also speculation that some counterfeit devices could be carrying Trojans, which creates a national security problem.

Avoiding exposure to counterfeit products is a massive task, but the 2012 U.S. National Defense Authorization Act (NDAA) was signed into law on December 31, 2011, which requires members of the defense supply chain implement certain counterfeit mitigation procedures in place.

According to IHS, 0.5 to 5 percent of the parts purchased for a military/defense program may be counterfeit parts.

  • LORD_ORION
    I wonder where these counterfeit parts are produced.
    Reply
  • Lutfij
    def not in (mainland) china
    Reply
  • digiex
    Where else,

    clue...

    ...they have a wall that can be seen in space.
    Reply
  • chomlee
    Is it me or does this article seem to be a little vague in the details. What parts are being counterfieted? Who's doing the counterfieting? What problems is it creating? I hate to be one of those critics but because there are no details/examples, I just dont understand the issue.
    Reply
  • tical2399
    chomleeIs it me or does this article seem to be a little vague in the details. What parts are being counterfieted? Who's doing the counterfieting? What problems is it creating? I hate to be one of those critics but because there are no details/examples, I just dont understand the issue.
    Agreed, this article basically says nothing at all.
    Reply
  • epdm2be
    The car industry has been using 'counterfieting parts' for ages. They're called replica's. It's sometimes your only option to revive that classic car that's been broken down. As the original manufacturer forces you to buy new stuff every year and hence stop to make replacement parts for that beloved oldtimer that can't part with.

    Now I wouldn't want to sit in a plane botched together by cheap cwappy countewfeit pawts. Take Off, might get a new meaning :-)
    Reply
  • jabliese
    Totally different problem, epdm2be. Think bad capacitors.
    Reply
  • three0duster
    I'd be willing to bet it deals with electronics. They (I wonder where) make some very convincing counterfeit parts. They work very similar up until longevity or quality are needed.
    Reply
  • wiyosaya
    chomleeIs it me or does this article seem to be a little vague in the details. What parts are being counterfieted? Who's doing the counterfieting? What problems is it creating? I hate to be one of those critics but because there are no details/examples, I just dont understand the issue.It would certainly be nice to know this so that people like us Tom's readers could be on the lookout.

    This sort of thing has not happened in years. In the early 90's (gosh, I feel like an old man :)), this was relatively rampant with CPUs. I forget what happened to stem the tide, however, the number of counterfeit CPUs on the market dropped significantly.
    Reply
  • wolfram23
    Just blame the pirates. It's always their fault.
    Reply