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Honest Components Inc has been recognized by Semiconductor Review Magazine as “Top 10 Electronic Component Distributors - 2024” based on our proprietary methodology, reflecting its position in the industry. This profile has been developed by the Semiconductor Review research and editorial team based on insights from an interview with Jackie Schwab, President.
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The military estimates that up to 15 percent of all spare and replacement parts for its weapons, vehicles and other equipment are counterfeit, making their equipment vulnerable to malfunctions. A high number of components can be easily replicated or modified which leads to the need for even more sophisticated testing to detect counterfeits.
New and original microchips are becoming harder to find, especially ‘end-of-life’ or obsolete components with many components now being sourced from China. Chip recycling is big business in China. Annually it is a multi-billion-dollar industry and is closely guarded. A small Chinese microchip recycling house could generate over $1 million each year. The majority of these recycled boards are from the USA and Russia. At these Chinese recycling operations, boards are often stored outside in the open-air causing water damage, with absolutely no ESD protection.
The alteration of electronic components is done through sanding and re-marking, blacktopping and re-marking, or similar methods of concealing the original manufacturer. Other strategies involve device substitution and die salvaging, where cheaper or used components are passed off as new or more expensive ones. They may actually be commercial grade passed off as industrial or military grade. Manufacturing rejects may also be repurposed and sold as new, and component leads may be re-attached to give the illusion of a new, unused product. Packaging can also be relabelled.
Inadequate inspection in the open market leaves room for an estimated $75 billion a year of counterfeit semiconductors ending up in $167 billion worth of electronics.
Because of the quality and sophistication of many of today’s counterfeit parts, they can often pass inspection protocols such as external and internal visual, dimensional, marking permanency and even electrical testing. Because such components can be easily cloned or altered, more sophisticated testing to detect counterfeit components is therefore necessary.
You may have come across distributors with their own test lab claiming that their capabilities are reliable enough to avoid counterfeit material to pass through. More likely than not, the price you pay for the components is suspiciously dirt-cheap.
However, it is a conflict of interest to test the parts that you also sell. They can easily alter the testing results in order to make the components appear genuine.
It’s quite vicious because sometimes CMs and OEMs don’t even know that some of their components were not genuine, and performances could be decreased due to older versions hidden in the batch.
It is crucial to only use independent 3rd party test labs, and that they are certified to AS6081 test methods including functional electrical testing. If your current distributor will not allow an independent 3rd party test lab to test the parts, stay away from that distributor.
As the electronics industry grows, the risk of counterfeits increases. Over the next five years, the global EMS industry is expected to grow to $856 billion, driven by increased demand for self-driving cars, medical devices, space exploration and defense spending. This growth will lead to more demand for integrated circuits in critical electronics. Many independent test labs are now using AI technology to mitigate counterfeiting risks.
For example, Visual Inspection AI can simultaneously inspect dozens of individual components on high volume printed circuit boards to detect missing, misplaced, or damaged components, and soldering issues. AI systems can utilize data from SMT machines, and spot counterfeit and defective components in real time during the electronic component assembly process. Additionally, AI provides manufacturers with a verifiable record of meticulous component checks, potentially saving them from costly product recalls in case of field failures.
Honest Components recently traveled to Asia and the U.K. to meet with valued suppliers and #1 trusted laboratory, Global ETS (GETS), a 3rd party, independent AS6081/ISO17025 military/aerospace-certified lab. Our supplier collaboration allows us to improve our business performance, customer satisfaction and reduce costs, while at the same time enhancing positive relationships with supply chain partners.
Further, because authenticity is Honest Components’ top priority, HCI bears the full cost of testing every order at Global ETS. Testing standards can include AS6081, AS6496, AS6171, AS6174, AS5553, MIL-STD-750, MIL-STD-883 or IDEA-STD-1010. Our customers always receive the Full Test Report and Honest Components’ COC before the parts ship.
About Honest Components
Honest Components uses AS6081 & ISO/IEC 17025 Accredited test labs. The company is ISO 9001:2015 and AS9120B Certified and WOSB (Woman-Owned Small Business) Certified by the SBA (Small Business Administration). They are also a GIDEP member and registered with ITAR. Every order they fulfil is meticulously tested at a 3rd-party, independent AS6081 and ISO/IEC 17025 accredited test lab. This military/aerospace-grade certification ensures the authenticity, reliability, and performance of every component customers receive.