electronic components

Why So Many Counterfeit Electronic Components in the Market?

Counterfeits nearly appear in almost every industry, so it’s common that counterfeit components flood in the electronics industry. Although governments, companies and other stakeholders have been trying to prevent counterfeits from entering the market by all means, they can still have access to the market, which probably lead to product performance problems even security issues.

According to the report, recycling e-waste as resource. There are about 2.6 million tons of electronic waste produced each year in China. In addition, each year about 600 million tons of electronic garbage emerge globally among which, 87% of electronic waste are shipped to Asia, and the 90% of electronic waste shipped to Asia are moved to China. So how will such a huge amount of e-waste be handled? Where will it go? Related medium exposed that few of components was completely destroyed but they will be reshaped and repackaged. Then it will go back to the e-waste market. As for the phenomenon, we usually take it for granted. But It does play a vital role in every electronic industry.

Shenzhen is the biggest electronic components trade market in Asia, but counterfeits have already covered all the corners of market. For example, In Huaqiang North Road commercial District, large electronic companies line up in the district, many of which mainly engaged in the refurbishment and disassembly of components! There was a time that fake electronics invade the production line of American aircraft, which caused international influence.

First of all, let’s have a general classification of the fake electronic components. We usually divide the electronic components into three parts: refurbished parts and bulk parts. Then bulk components are also applied into two situations. Some bulk components are not produced by official original factories but others by virtue of awareness of original manufacturers, namely fake components, which are called bulk or original components to cheat suppliers. Then the other bulk components are produced by original factories but unqualified. So they will handle them via other channels. Meanwhile retailers will import them as stock and supply them to the suppliers as original and bulk components. The refurbished parts indeed come from the original manufacturers. They can be also regarded as the obsolete parts, which are already end of life. Otherwise after a series of process such as polish, tinning, fixing pins and indents and so on, they seem to be new parts, which are thrown into the electronic components market again to continue market trade.

Why do so many counterfeits swarm into the electronic components industry? In the ever-accelerating age, the reasons can be vibrant.

Low risk , high profit

In 2007, the U.S. Federal Bureau of Investigation estimated that the distribution of counterfeit product was 900 percent more profitable than the distribution of cocaine. Anyway, We can infer that engagement in counterfeits trade is safer than serious crimes. Maybe you think I am kidding, but it is true! With narcotics smugglers facing mandatory sentences stretching into the decades, it comes as no surprise that criminal syndicates are attracted to selling counterfeit products, the penalty for which often amounts to just a few months behind bars. In the electronic components industry, It is more likely that huge quantity conduces to high revenue and high profit. Especially in the electronic industry, low cost with high technology dooms to fat benefits. Some agents and distributors take more advantages of fake components with lower cost. Driven by the fat profit, more and more suppliers spare no effort to squeeze into counterfeits industry, which makes the market more complicated. But we have to say that low risks and high profit primarilycontribute to the growth of counterfeits.

Ineffective legislation filters

The electronic components market is becoming more and more volatile to enter. But Counterfeiting of electronic components can infringe the legitimate producer’s trademark rights. As far as we know that the notoriously weak protections for intellectual property in China, It is said that most of electronics from China is not real. The senate armed services committee in May 2012 issued a report that more than 1 million pieces of counterfeit electronic parts from China not only “widely used in the United States military aircraft, but also were involved with the royal Australian air force plane .We don’t know what the details of the deal are, but it certainly reveals the terrible power of the black market in China’s electronic components. Not only in China, the global countries needs to laws to regulate the trade between different dealers.

Increasing quantity demand in the industry

Nowadays it is the era of technology, which drives innovation. It also urges that the developed equipment which is mostly consist of the electronic components need to invent and product. Who can capture the market will be the winner of the age. So more and more manufacturing has moved towards production methods which ultimately means that shortage occurs more frequently within the market, which leads to a higher risk of counterfeiting when parts are in greater demand because high demand promotes high-speed production and vibrant channels of materials to cater to the massive market. So some fraudulent sellers begin to engage in inappropriate operation in the components industry. So it is hard to guarantee the quality when the quantity reaches a certain degree. Meanwhile you long for a large number of quantity of components and you need to check them in detail.

Certainly, there are also other factors promoting fake components thriving such as development of counterfeiting technology, the abnormal market demand and so on. Facing the tough situation, how we can mitigate or avoid risks of counterfeits becomes another hot issue customers care most. You can import electronic technology which can help to tell the fake and the true and allows you to find the goods with decent price and high quality in a large number of sources. Then you can have a few of regular source, which have official certificates and authorization. Since the source, quality and reliability of counterfeit electrical parts are unknown, the potential health and safety risks due to fire, shock or explosion from their use in consumer electronics should not be neglected. The International Chamber of Commerce (ICCWBO) evaluates that 80% of consumers in the developed and developing world regularly purchase

products that include counterfeit parts but most of them are unaware that they are doing so or of the dangers that are involved.

No fake components Guarantee.

Allchips, a professional supply chain platform of electronic components, cooperated with 1000 original manufacturers and authorized agents.So they absolutely guarantee the genuine products. The platform combines big data and artificial intelligence technology , offering to calculate the cost, manage the risks, suggest the substitute materials and complete the electronic components supply service of the BOM. So Allchips becomes all-in-one procurement department of the hardware manufacturers, helping them to complete the manufacture plan, improve the efficiency and save the labour resource,time and the material cost. Allchips deserves your attention.

Leave a Reply