Combating the Threat of Counterfeit Electronic Components

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1 Combating the Threat of Counterfeit Electronic Components Jason Jowers Director of Quality and Operations Velocity Electronics 1

2 Agenda The Threat Counterfeit Avoidance Counterfeit Detection 2

3 Velocity Electronics Independent distributor of board-level electronic components Founded in 1999 Headquartered in Austin, Texas 90+ employees in the U.S., Singapore, the U.K., France, Mexico, Colombia, China, Malaysia, and Hong Kong AS9120, ISO 9001, and ANSI/ESD S20.20 certified Member of IDEA and ERAI 3

4 The Threat 4

5 Counterfeit Component A copy or a substitute without legal right or authority to do so or one whose material, performance, or characteristics are knowingly misrepresented by a supplier 1 Examples Remarked components (e.g. part number) Defective components meant for scrap Re-reeled/re-labeled components 1 AS5553 5

6 What is the Threat? Counterfeiting is increasing in volume 1 Counterfeiters are motivated by high profits obtained by selling fraudulent components Billions of dollars of counterfeit components enter the supply chain each year 2 1 AS Bogus: Electronic Manufacturing and Consumers Confront a Rising Tide of Counterfeit Electronics 6

7 What is the Threat? No longer counterfeiting primarily integrated circuits, now counterfeiting discrete and passive components more often Counterfeiters are utilizing more sophisticated techniques that are harder to detect 7

8 What is the Threat? Even the franchised distributor supply chain has become contaminated with counterfeits 1 Franchised distributors purchase components from independent distributors Returns to franchised distributors may contain counterfeit components 2 1 Purchasing.com, 06/14/07 2 Robin Gray, Executive VP of NEDA (Purchasing.com, 06/14/07) 8

9 Counterfeiting Process Remark integrated circuits 1. Remove the original marking (usually by sanding or blacktopping) 2. Apply a fake texture if necessary 3. Apply fake markings 4. Possibly add a coating to protect the fake markings and texture Remark and/or re-label passive components Put a marking on an originally unmarked secondtier discrete component Sell defective components meant for scrap 9

10 Counterfeiting Process 10

11 Counterfeiting Process 11

12 Counterfeiting Process 12

13 Counterfeiting Process 13

14 Counterfeiting Process 14

15 Counterfeiting Process 15

16 Counterfeiting Process 16

17 Counterfeit Avoidance 17

18 Counterfeit Avoidance Without excellent supplier selection, purchasing controls, and supplier management; even the best inspection program will fail 18

19 Vendor Selection and Management Develop an approved vendor list Conduct on-site audits of suppliers during and after the selection process Use data-driven objective vendor ratings based on metrics such as quality performance and timeliness 19

20 Types of Independent Distributors 1. Run of the mill independent distributors (brokers) Limited or no inspection capabilities Very few, if any, internal controls 2. Quality independent distributors Effective counterfeit avoidance and detection program (effective controls, IDEA-ICE-3000 certified inspectors, necessary equipment and training) ISO 9001 and/or AS9120 certified ANSI/ESD S20.20 certified Member of IDEA; member in good standing with ERAI 20

21 Purchasing Considerations Do not focus only on the initial cost of product must consider the total cost of procurement and ownership Also consider the costs of receiving counterfeit components Failure analysis Rework Down-time 21

22 Counterfeit Detection 22

23 Inspection Protocol Utilize a statistically-valid sampling plan Take samples from random packages and random locations within the packages Use IDEA-ICE-3000 certified inspectors and QC managers Use the same inspection method regardless of vendor type (OCM, authorized distributor, independent distributor, OEM/CEM excess) 23

24 Inspection Protocol Dimensions and other physical characteristics Microscopy Marking permanency test Acetone wipe test Heated solvent test Decapsulation Real-time X-ray Curve tracer LCR meter 24

25 Dimensions / Physical Characteristics Purpose Identify remarked components Resources Method Calipers Microscope with 40x-200x magnification Access to manufacturer s datasheet Compare dimensions and other physical characteristics (e.g. number of leads) to the manufacturer s specifications 25

26 Microscopy Inspection Purpose Identify refurbished and remarked components Resources Method Microscope with 40x-200x magnification Access to known-good components or photographs of known-good components Look for signs of remarking and refurbishing (takes a good amount of training to do this properly) Compare visual indicators to known-good components 26

27 Microscopy Inspection Leads Out of Alignment 27

28 Microscopy Inspection New Used 28

29 Microscopy Inspection Burn Holes 29

30 Marking Permanency Test Purpose Identify remarked components Resources Method MIL-STD-883H Method 2015 solution (25% isopropyl alcohol, 75% mineral spirits) Wipe the components with the solution to determine if they have substandard markings 30

31 Marking Permanency Test 31

32 Acetone Wipe Test Purpose Identify remarked components Resources Method Acetone Wipe the components with acetone to determine if they have had a fake coating applied to them Note that some counterfeiters are using a new coating that is not removed by acetone 32

33 Acetone Wipe Test 33

34 Heated Solvent Test Purpose Identify components resurfaced with the acetone resistant coating Resources Method DynaSolve 750 Heat DynaSolve 750 to 105 o C Immerse a portion of the component in the heated solution for 45 minutes Examine component to see if the coating was removed 34

35 Decapsulation Purpose Identify remarked components Resources Method Decapsulation device Microscope with 800x+ magnification and high resolution camera Photographs of known-good die markings Compare the die markings to known-good die markings 35

36 Decapsulation 36

37 Real-Time X-Ray X Imaging Purpose Identify remarked components Resources Method Real-time X-ray machine X-ray images of known-good components Compare die shape/size and wire bond configurations to a known-good component and to other samples within the lot 37

38 Real-Time X-Ray X Imaging Glenbrook Technologies JewelBox-70T 38

39 Decapsulation and X-Ray X Example Three Components With Identical Markings 39

40 Decapsulation and X-Ray X Example Small Die Large Die Medium Die 40

41 Decapsulation and X-Ray X Example Small Die Medium Die Large Die 41

42 X-Ray Spectrometry Purpose Identify refurbished and/or remarked components Resources Method Bench-top X-ray fluorescence spectrometer (not a hand-held or modified hand-held device) Manufacturer s datasheet Compare elemental analysis to datasheet 42

43 X-Ray Spectrometry Fischerscope XDAL Fischerscope XAN

44 X-Ray Spectrometry Report 44

45 Passive Components Purpose Identify remarked or relabeled inductors, capacitors, resistors Resources LCR meter Microscope with 40x-200x magnification and highresolution digital camera Real-time X-ray machine Calibrated digital caliper Manufacturer s datasheet 45

46 Passive Components Method Use LCR meter to compare inductance, capacitance, and resistance to datasheet specifications Use real-time X-ray to compare internal construction to known-good sample and to other samples in the lot Look for evidence of being remarked Compare dimensions to datasheet specifications Compare visual appearance to a known-good 46

47 Passive Components Inspect diminutive passive components with high-powered magnification to identify differences in construction and color Example: Chip inductors Left: Fake Murata component (actually Panasonic) from supplier Right: Known-good Murata component from manufacturer Component size relative to tip of a pen 47

48 Passive Components Single Anode Capacitor Multi Anode Capacitor 48

49 Passive Components Different Internal Construction Than Known-Good Component 49

50 Jason Jowers Director of Quality and Operations Velocity Electronics (x237) 50

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