Avoiding Counterfeit Components
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1 Avoiding Counterfeit Components DMSMS & Standardization 2009 Orlando, Florida September 21-24, 2009 Presented by Marty Lanning, XTREME Semiconductor
2 Company Information A Texas Company founded in January 2004 Founders: Paul Hilfer and Marty Lanning Web Site Leander, TX
3 Who is XTREME Semiconductor? A Solutions Company, Providing Support for Obsolete, Legacy, and End-Of-Life Semiconductor Products. Manufacturer of Legacy Mil/Aero Products MIL-PRF QML Q Certified Custom Packaging, Source Control Drawings Independent Distributor offering Certified End-Of-Life Product Reference Standards MIL-STD-883 IDEA-STD-1010A CCAP101 SAE AS5553
4 Avoiding Counterfeit Components What is a Counterfeit Semiconductor? Why is there an Industry problem with Counterfeit Semiconductors and where are they coming from?
5 Avoiding Counterfeit Components Definition: Counterfeit Semiconductor: The Intentional Misrepresentation or Alteration of a Product with the Intent to Defraud or Deceive the Purchaser. Common Examples: Re-marking, Re-branding, Re-furbishing Substituting Substandard or Inferior Product as Original Passing One Manufactures Product Off as Another Previously Used or Salvaged Product Sold as New
6 Avoiding Counterfeit Components Problems Facing the Industry today: Ongoing Demands for Obsolete Product Minimal Support for Obsolete Products from the Original OCM Few Quality Aftermarket Suppliers Industry Accepted Quality Standards and Procedures are not Implemented by many of the Brokers and Independent Distributors Servicing this Market Steady Stream of Counterfeit Products Entering the Market Primarily from China
7 Sources of Counterfeit Components U.S. Department of Commerce Data Preliminary Data (as of March 4, 2009)
8 Avoiding Counterfeit Components So, How Do You Avoid Getting Stung by Counterfeit Components?
9 Avoiding Counterfeit Components Option 1: Buy from an Authorized or Franchised Distributor when Inventory Exists Lowest Risk Traceability (C of C) back to the OCM Option 2: Buy RE-MANUFACTURED OR VALIDATED product from a Trusted Aftermarket Source Lower Risk Solution Some offer a Product Warranty Option 3: Purchase from Brokerage or Non- Franchised Suppliers: Highest Overall Risk and Cost No Traceability (C of C) and No Product Warranty
10 Avoiding Counterfeit Components Broker Market Overview Not All Brokers & Independent Distributors are the Same Many have minimal Quality Systems and no ESD Controls Some have No Experience in the Semiconductor Market The Internet has Created Virtual Companies Product Quality is Compromised Traceability back to the Original OCM is unavailable Limited or No Product Warranty No Product Support Buying Obsolete Products Requires More Support, Not Less
11 Avoiding Counterfeit Components What is the True Cost of Receiving a Counterfeit Product? Some of the Cost to Consider are: Incoming Inspection Problem Solving and Disposition Administrative Efforts to Process Returns Processing Multiple Purchase Orders to Replace Material Lost Production Time and Revenue Damage to Companies Quality Reputation
12 Avoiding Counterfeit Components In the Big Picture, Counterfeit Semiconductors Threatens Us All Levels: National Security at all Levels Defense and Aerospace Industry National Power Grid Web and World-Wide Communication Systems Banks and Financial Institutions USA High Tech Industries
13 Avoiding Counterfeit Components Industry Impact of Counterfeiting Problem is Industry-Wide; Global and Growing Loss of Legitimate Sales Estimated > $100 Billion Value of Counterfeit Components > $1-10 Billion 750,000 Jobs Lost Most Cases are not Documented.Just Too Many Electronics Retailers Association International (ERAI) Receives up to 200 Complaints a Month.Identified 2578 Brokers Selling Counterfeit Components If counterfeiting was stopped today, it will take years to purge the Supply Chain of these products.
14 Avoiding Counterfeit Components What is Lot Validation and Why is it Important? Confirming the Lot Number and Lot Date Code with OCM or other Known Good Sources Visually Inspect for Re-marked, Used or Re-furbished Material Confirmation of the Die Identification (Mask ID) X-Ray to Confirm Lot Consistency Test to Validate the Original OCM Product Specification Mitigates the Risk of Buying Counterfeit Material
15 Avoiding Counterfeit Components U.S. Department of Commerce Data Preliminary Data (as of March 4, 2009)
16 Avoiding Counterfeit Components Reported Counterfeit Incidents:
17 XTREME Solutions XTREME Semiconductor Certified EOL Product Warranted to be Authentic OCM Product Visual & Mark Permanency: Anomaly Inspection 100% up to 100pcs, RTS Sample Die ID: Die and Mask ID Verification One (1) piece minimum from each lot Date Code or Lot Electrical Test: 25 C Limited DC/ Limited Functional Testing 100% up to 100pcs X-Ray Inspection: Verifies Lot for Consistency 100% up to 100pcs XRF RoHS Testing: Lead Free Verification Sample Inspection (When Required) Customized Test solutions: XTREME can provide customized Lot Validation Plans to meet unique customer needs or specific product applications. Warranty: Will Perform to Manufacturers Data Sheet One (1) Year from the date of shipment. Mirrors the Original OCM Warranty
18 XTREME Solutions XTREME Semi Certified EOL Product Process Development Considerations: Must be a Cost Effective Solution Assumption: Product is Valid OCM Material Process Objective is to Authenticate Real OCM Material Look for Anomalies that invalidate the Primary Assumption Process to be effective in Authenticating Most IC s and Discrete Components
19 XTREME Solutions Criteria for Sourcing Obsolete Product Avoid Brokers/Distributors Sourcing in China Utilize Brokers/Independent Distributions who are Active Members of IDEA or ERAI or ISO Certified Contact Authorized Distribution: Rochester Electronics Look for Stocking Distributors: Use sites such as Stockingdistributors.com or Parthunter.com Do Research Prior to Buying Request pictures, lot date information, lot numbers Determine EOL date of product prior to purchase
20 XTREME Solutions Inspection Results of Brokerage Material: 2008/ % of all lots inspected by XTREME were rejected Includes bent leads, damaged or Incorrect material Seventy-Seven (77) lots/devices types were rejected as counterfeit material % of lots presented to XTREME from Brokers are rejected prior to purchase. Rejection criteria: Visual Anomalies Lot Date Code Issues Refurbished or Poor Condition
21 Validation Process: Example of Re-Marking Sanding & painting the surface of the device is a common technique used by Counterfeiters to alter the marking or misrepresent the product.
22 Validation Process: Example of Re-Marking Obvious Sign of remarking using a process called Black Topping
23 Validation Process: Example of Re-Marking SMD P/N does not match the manufacture s P/N (120ns vs 90ns) and the Date Code is two years past the EOL production date for this product.
24 Validation Process: Example of Re-Marking Notice the Difference in the Logos? The Date Code Format? No ESD Indicators? Shiny Black Finish.Should say Careful Fresh Paint
25 Validation Process: Example of Re-Marking High Magnification Shows Sanding Marks found under Black Topping
26 Validation Process: Example of Re-Marking This Material has been remarked and several lots of material combined into one. Notice that both products have the same lot number and product marking, but have two different packages styles.
27 Validation Process: Example of Used Material This type of Contamination Indicates that the Material may be Used or Pulled from a board
28 Validation Process: Example of Used Material Visual indicators of material that has been used and refurbished. PCB Solder Marks Scratches around Mounting holes
29 Validation Process: Example of NEW Material We analyze the component surface and leads to look for evidence of the device being re-surfaced or retinned.
30 Validation Process: Benefits to Using of X-Ray X-Ray Can Be Used to Validate Lot Consistency and is a Non-Destructive Test
31 Validation Process X-Ray can be used to identify counterfeit material in a lot of mixed material Same product marking, two different die inside
32 Validation Process: Uses for X-Ray Using X-Ray we were able to detect two different die types and lead frames used in the same lot of material. Upon further investigation we also identified two different die revisions. Micron S06A Revision Micron S12D Revision
33 Validation Process: Example of Die Identification Validation of the Mask and Die ID is key to determining the authenticity of a device.
34 Validation Process: Example of Die Identification This information is validated on every lot of XTREME Certified EOL Product.
35 Certified EOL Product What you can expect from XTREME Semiconductor Certified EOL Product? Original OCM Material, no Counterfeits Certificate of Compliance (C of C) Test Data: Die Photos, X-Ray s, Elect. Test Summary Warranty: One-Year from the Date of Shipment 100% Satisfaction
36 Certified EOL Product Eliminates the Risk Let Us Answer Your Questions. Come see us at Booth 318
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