ERAI’s 2025 Annual Report provides valuable insight into the continuing problem of counterfeit and nonconforming electronic components. Although the total number of parts reported fell during the year, the findings show that counterfeit components remain a significant global supply chain risk. ERAI received reports concerning 748 parts in 2025, a decrease of 29.1% compared with 2024. However, the previous year’s total included a single batch of 248 parts reported by the US Government. When this exceptional batch is excluded, the year-on-year reduction was only 7.4%.
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An excess stock valuation project for a UK original equipment manufacturer (OEM) involved some striking figures:
- 5,775,157 electronic components
- More than 600 different manufacturer part numbers
- Millions of items requiring identification, verification and valuation
The OEM could have managed the project internally. Many businesses attempt to do exactly that. However, once the time required to identify, count, verify, value and document millions of components is considered, this approach rarely makes commercial sense.
At Auckland International, we specialise in helping businesses realise the value tied up in excess and redundant electronic component stock. A recent project provided an excellent example of just how significant that value can be.
During a recent visit to China, Trevor Tucker of Auckland International travelled to the Shenzhen headquarters of SJK, one of our manufacturing partners, to discuss current projects, future opportunities and the continued development of our working relationship.
Electronic component obsolescence is often viewed simply as a purchasing problem. A component reaches the end of its manufacturing life, the purchasing department struggles to find stock, and production is delayed until replacements can be sourced. In reality, the cost of obsolete electronic components extends far beyond the purchase price. The wider financial impact on a business can be significant, affecting production, engineering, customer relationships and long-term profitability.
Understanding these hidden costs can help businesses take a more strategic approach to managing component obsolescence.