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The Global Chip Shortage is Creating a New Problem: More Fake Components (zdnet.com) 72

Industry analysts believe that the global chip shortage is creating the perfect environment for counterfeit semiconductors to enter the market. From a report: With demand looking unlikely to calm down, analyst firm Gartner estimates that the semiconductor shortage will last well into 2022, and has warned equipment manufacturers that wafer orders could come with up to 12 months of lead time in the coming months. For some companies, this will mean finding an alternative way of stocking up on chips or shutting down production lines. In other words, the current times are opening up a golden opportunity for electronic component counterfeiters and fraudsters to step in. "If next week, you need to get 5,000 parts or your line will shut down, you will be in a situation of distress purchase and you will put your guard down," Diganta Das, a researcher in counterfeit electronics at the Center for Advanced Life Cycle Engineering (CALCE), tells ZDNet. "You won't keep to your rules of verifying the vendor or going through test processes. This is likely to become a big problem."

As part of his research, Das regularly monitors counterfeit reporting databases like ERAI, and although it is too early to notice a surge, he is confident that the number of reports will start growing in the next six months as companies realize they have been sold illegal parts. The problem, of course, is unlikely to affect tech giants whose reliance on semiconductors is such that they have implemented robust supply chains, and will typically only purchase components directly from chip manufacturers. Those at risk rather include low-volume manufacturers whose supply chain for semiconductors is less established -- but it could include companies in sectors that are as critical as defense, healthcare and even automotive.

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The Global Chip Shortage is Creating a New Problem: More Fake Components

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  • by Antique Geekmeister ( 740220 ) on Thursday June 17, 2021 @02:47AM (#61495474)

    I've been handed systems with fake chips as well, that were apparently originally real components but had not passed quality control. Has that increased lately?

    • Most likely, I doubt someone has a shop set up making fake ryzens, radeon or gforce chips. That would be quite an achievement. Probably dumpster diving, taking large batches of rejected chips and selling them under no name brands.
      • by AmiMoJo ( 196126 ) on Thursday June 17, 2021 @05:58AM (#61495720) Homepage Journal

        It won't be Ryzens, they are too valuable. AMD will take the ones with defects, disable the defective parts and sell them as a cheaper SKU. That's all the different SKUs are in many cases, one chip has some bad cache so they disabled half of it and sold it as a low tier part, another runs great at 5GHz so they sold it as an AF edition.

        Where you get remarked parts causing problems is things like EEPROMs with some failed cells. It might not be apparent unless you do a 100% memory test, which takes time during production. Even if all the cells are okay it might have failed in other subtle ways, like drawing excessive current during writes or they detected some die defect that means it will work for a while but not get anywhere near it's 100k erase/write cycle specification.

        Another one is marking inferior parts as more expensive ones. Say you have a voltage reference rated for 0.1%, it could be a 0.5% one re-marked and the only way you would know is if you measured it after installation on the PCB, or detected measurement errors in operation. If you already had 10k PCBs with the re-marked parts at that point you might try to find a firmware fix with calibration step, rather than reworking every board.

        • I can't help but be reminded of the counterfeit Japanese capacitors that hit the market back in the mid 2000's. I was working in my university's IT department and we kept having Dell desktops go bad, randomly shutting down with temperature alerts despite being fairly cool. Eventually I noticed the caps were popped. Dell had bought a huge number of counterfeit parts.
          • by AmiMoJo ( 196126 ) on Thursday June 17, 2021 @09:31AM (#61496122) Homepage Journal

            That's actually a myth. There was a report in a British newspaper about it, but it's not true. The problem was not counterfeiting or stolen formulas, it was just the supply of raw materials being sub-standard.

            Dell had a lot of problems back then, e.g. the fault Nvidia chipsets that tended to die after about 12 months. HP was even more badly effected since almost all of their machines had Nvidia chipsets.

            • It's not necessarily a myth, some researchers at UMaryland analysed the failed capacitors and found they lacked passivation compounds, which matches the "incompletely-copied formula" story. The passivators are quite cheap so it wasn't corner-cutting, it was not knowing that they needed to be present at all. So the exact details may not be all correct, but the general story checks out.
          • by jjbenz ( 581536 )
            I remember having a bunch of Dell with swollen capacitors. I think they were optiplex 280 or optiplex 270 models.
            • Yeah, those were the ones! I forget which we were deploying (70 or 80), but the failure rate was ridiculous. Counterfeit capacitors with contaminated electrolytic goo.
    • by tlhIngan ( 30335 ) <slashdot.worf@net> on Thursday June 17, 2021 @05:51AM (#61495710)

      Fake parts come in several varieties.

      First are rejects - parts that didn't pass their tests are discarded, but instead of being crushed and recycled, they're harvested. Most rejects aren't rejected because they don't work, they usually just barely work. Example, they may work just fine at room temperature, but fail once it gets hot.

      Second are functionally identical parts - these are usually turnkey parts. You may remember fake FTDI USB to serial adapter chips a few years ago. These are functionally identical - the fake chips are a completely different architecture internally but work the same when hooked to a USB and serial port.

      Third are outright substitutions - for chips where a part may function similarly to another part, the parts are re-marked. Example, transistors - two transistors may have similar specifications, but different part numbers. But maybe a parameter keeps one from being an easy substitute to the other. Nonetheless, unscrupulous dealers will use one and pretend it's the other.

      And then there are outright fakes. Take one popular chip, find one with similar packaging and then alter it so it looks like the popular chip. No surprise, these chips don't work - because they're the wrong chip. They just look like the one in demand. The hope here is to sell it to some collector who may not actually use the chip, or for someone stocking up their parts bin and may never actually get around to using it for years.

      • The last one is a distinct problem but it has been growing in the DIY PC space. There have been some well reported instances of supply chain tampering where shipments of CPUs will have the real ones stolen and replaced. Sometimes the thief's will put in effort and relabel an older chip and swap them. Sometimes they will just toss in a print out of a picture of the chip taped to a weight. They just need it to make it to retail so they can't be caught.

      • by AmiMoJo ( 196126 )

        Substitutions are an interesting one.

        Taking FTDI as an example, a lot of companies have switched to using cheaper parts from other companies that are more or less functionally identical. Years ago drivers were an issue, the FTDI ones had a few advantages over the standard Windows CDC driver, but not these days.

        So why bother substituting if they are functionally identical and work fine? A lot of it was down to the perception that these new Chinese brands must be crap, so pay 5x more for an FTDI part. Now tha

        • "Functionally identical" is a very, very dangerous phrase, popular among purchasing agents who skimp on specs and lead to enormous issues down the line. One of my favorites from long ago in my career was when somebody had taken out all the ceramic capacitors scattered all around the board and put in one larger tantalum capacitor at the bottom of the board on the new design. To salvage the boards, someone on site had to pull the new boards, manually solder in ceramic capacitors across the same leads on the n

    • Well, let's say you are outside the legal jurisdiction of a customer. Just take the money and ship a box full of sand. Or if you're subtle, just ship normal chips that aren't in low supply instead. Then spend the money. You don't actually ever need to send a part that pretends to work, or chips that failed QA, etc. For the ultimate in criminality demand payment in bitcoin.

  • by Anonymous Coward on Thursday June 17, 2021 @03:51AM (#61495560)
    I work for a company that makes test jigs (bed of nails testers) and we had a product line running for the last two years.. the factory started reporting failures on the test jig.. after a whole bunch of testing and poking around we found a Fet that had all the right markings but just didn’t perform the same as it used too.. after replacing the Fet from a working board the problem went away.. taking a Fet off another board and tested the crap out of it, we discovered that the gate capacitance is much mush higher than the spec says. The source drain capacitance was also wrong.. searching through our logs we see the factory changed reels in may.. right about the same time the problems started.. photos of the reels show no differences and the chips are identical result 3000 fake fets have made it into our product line :( Let’s just say the boss is not too happy Posting anonymously to Protect the guilty!!
    • This kind of thing happened to NASA as well: https://www.cnet.com/news/nasa... [cnet.com]
    • This has been going on for a long time for people trying to fix older audio equipment. Some of the out of production transistors, particularly power FETS that are no longer made. People will advertise on EBAY that they have a batch from yore and when people put them into the amp, poof. The parts are usually just some other part that they either repackage or relabel. What sounds different here is that you are buying from a reputable source that is getting fake parts. I can see how it can happen though. I bou
      • by EvilSS ( 557649 )
        It's a problem in the retro computing community too. Lots of fake vintage chips out there. It's such a niche market I'm honestly surprised they bother but they are all over the place.
    • I had a batch failure like this. We were making miniature radio transmitters, and generally got very consistent results on RF output. Then on one batch, almost all transmitters failed, due to low RF. Turns out the current gain of the RF transistor was lower than normal on this batch. Unfortunately for me, the defective transistors were still just within stated specs. I scrapped the whole batch, and bought a new reel of transistors from a different manufacturer, and everything was fine again. I had always su

  • by gweihir ( 88907 ) on Thursday June 17, 2021 @04:07AM (#61495586)

    Some can be counterfeit, others really cannot. For example, an MCU can basically only be copied and it requires an unscrupulous Fab for that to work. The component will simply not work if it is not a precise copy of the original design and that will be immediately obvious. Power semiconductors, on the other hand, can be replaced with ones that have worse specs for reduced lifetime and reliability.

    • by spth ( 5126797 ) on Thursday June 17, 2021 @04:59AM (#61495654)

      Counterfeitung is a big problem for STM32 MCUs.

      Often, the fake is actually an STM32 clone (they tend to be fully compatible for the core, but have differences in the peripherals), that had its markings sanded off and reprinted to look like an STM32. Sometimes is is actually a lower-end STM32 with markings changed

      While the problem has been around of a while [hackaday.com], it has gotten worse lately, to the point where some report that it has become virtually impossible to get an original.

      • I doubt that someone is cloning an entire MCU, that would be difficult and costly (you would have to have a team of silicon experts, photograph the MCU, slice off the silicon layer by layer to figure out how it was contructed and then label millions of transistors) . Much easier to repaint.

        • by spth ( 5126797 )

          People clone STM32 MCUs.

          The CS32F103 is a Chinese clone of the STM32F103. AFAIK the main differences are the marking and that the CS32F103 fixed some of the errata still present in the original.

          The GD32F103 is another Chinese clone of the STM32F103. AFAIK the main differences are the markings ands that it supports higher clock speeds and has higher power consumption than the original.

          As long as they do have the correct markings, those are examples of rather good clones. But there are others.

    • That isn't correct at all. MCUs are often counterfeited. They typically use other cheaper MCUs to do the heavy lifting and fake the model code. You as the programmer are none the wiser until your device doesn't work. You can even attach a debugger and see that you're correctly writing registers but for some strange reason function X just isn't working. Yeah function X isn't present and that register you're writing is doing something else entirely.

      Digital components are faked all the time. The most classic e

      • UARTS and eeproms have been my favorite vectors and worst enemies. Having operated a multi node BBS from the 2600baud to 56k I have experienced everything imaginable for work around. It got so bad they said screw it and moved to lame ass winmodems. Reserving the higher quantity UARTS for more important jobs like switched 56k and high end serial communications. If you have never used Kermit to upload a modern Cisco IOS you haven't lived. It is so important to me that I actually keep a couple of very old sy
      • by gweihir ( 88907 )

        You did not understand my statement. The problem with, for example, fake power transistors is that they work for a time. A MCU will fail immediately.

        • That is also completely untrue.
          Both fake transistors and fake MCUs can work completely fine, or can fail early. The only thing that really is common among all fakes is the inability to meet their exact specs, and that is common to MCUs and transistors.

          • by gweihir ( 88907 )

            You still do not understand what I am talking about. Well, no matter. You have demonstrated cluelessness in the past.

    • I’m pretty sure Disney would argue that the MCU is counterfeited any time a new torrent is posted for a Marvel movie.

    • I used to design Gamma Detectors, using PMT's.
      We used Zener Diodes in the circuitry, and suddenly They started failing by the systemfull.
      It came down to a Zener diode that cost less than $00033., that's $33 per 10,000. :)
      A rectifier diode just happened to break over at 200v, and they used those, remarked to our part.
      Not being zeners, they failed rapidly. Different internals, not suited for the purpose, so they failed fast. :)

      I did learn something from it: Zeners and rectifier diodes have opposite temperatur

      • by gweihir ( 88907 )

        Fascinating. Some people are just completely broken and will do massive damage for a tiny profit.

        • Once you have a working product, there will be a team or project involved in cost reduction. It doesn't matter that you sell the software for $1 million, they will demand that the profit margin improve on the devices by 5 cents. Sometimes it seems like the cost savings doesn't even cover the cost of all the labor expended to do the cost savings.

          So, sell a game console that comes with a free copy of Tetris. Someone will try to remove that Tetris because it's costing thousands of dollars a year in revenue.

  • Are they still around? There are still people who believe they don't simply make everything up?

    • Everything is made up, including the words you use. The question is if someone agrees with it, and the basis for saying the things you do. Now I assume since you're taking the moral high ground you can point to a study on the accuracy of Gartner's claims over time showing that they "make everything up"? Though considering you can't even spell the company name...

  • Sabra Price is Right

    Chris Farley: It's just that I've never heard of the Pinnacle corporation before.

    Tom Hanks: Is Sony guts, is same thing.

  • This isn't a new, this has been going on for years. Even chips for classic computers are being counterfeited because they're not produced anymore or are impossible to get. Try buying a real SID chip for a C64, there's a 75% or higher chance that you're going to get a reject chip with fake dates silkscreened on it that is only partially functional. Heck, even buying something as common as a Z80 is risky these days. I never buy chips that ship form China, the risk is too great. Unfortunately the supply o
  • As a hardware hacker that started in the analog days I predict massive damages. It is Dallas Semiconductor, echo star and Murdoch daja vu days lol.
  • Having spent one career working for a (then) major semiconductor company, I learned that our semiconductor libraries and processes were so poorly documented and designed that we got a fair amount of variation sometimes even over one wafer. This was for our analog RF/IF parts (cellular handset front ends, PA chains, and I/Q mixer, oscillator, and baseband blocks), where small changes can have large impacts to performance. Die were screened on wafer to see how good/no-so-good/bad they were, then diced and pac

    • I am actually surprised how inept and disorganized many hardware engineers can be. People in software may bemoan that they're just wannabe engineers, but usually they will actually have a process in place for software design and maintenance. For example, software people know enough to use a code repository and why it's important; whereas I have seen many hardware engineers writing VHDL code and not understanding the need to have a repo for it, or what branches are for.

  • One of my customers made electric car door locks. Small electric motors drove the mechanism. These were basically the same kind of motors used in toys, but adequate for purpose, as long as they maintained a consistent performance. One time, a batch of motors arrived from China, and they just did not have the oomph like the old ones. This caused major ructions. There was no chance of passing off the defective locks. I was told that a whole container load of motors was quarantined. The problem then was provi

  • Back in the late '90s, there were stories very similar to this. People shipping "chips" that were just plastic. When someone proved that there wasn't any silicon in them by melting one, the supplier said that they had voided the warranty by applying the heat to the chip. What's old is new again.

  • ...back in the 2000's I went around and purchased up old electronics stores going out of business. I scored millions of components from their basements for pocket change.

    I guess that stock must be worth a fortune now - not a single counterfeit in that collection, just NOS components from factories and stores going bust.

  • We may be a third world country, but we do have the best scientists, and we do have efficient hardware. Just one answer 4 yall: Optical Microscopes with Nano Resolution Now get all the schoolboy kids back to the lab, let the adults take over, and think of something else.
  • I know of a manufacturer who had some products made overseas for the first time.

    All good until they started failing after 6 months - well over 50%. Unfortunately the product was installed in facilities all over the place and the manufacturer had a guarantee in place meaning they would cough up for the replacement cost INCLUDING removing and re-installing a new one [it was built into the high retail price as part of the offering but they didn't expect 50%].

    That was a very expensive lesson. Turned out the man

Love may laugh at locksmiths, but he has a profound respect for money bags. -- Sidney Paternoster, "The Folly of the Wise"

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