The IEEE published a report in December 2024 on counterfeit electronic components, which included a survey of industry experts.  87% of those surveyed said counterfeit components were a major or significant concern.

They also asked about the costs to a manufacturer of discovering that they had inadvertently used a counterfeit component in an electronic assembly.  88% of those surveyed said the cost would be in excess of $50,000.

Why the risk is growing

The report explains why the risk of counterfeit components is growing. The risk of counterfeit components increased sharply during the Covid-19 pandemic. Long lead times from manufacturers left many OEMs unable to ship high-value systems because they lacked low-cost components. To keep production moving, they turned to non-authorised resellers, who used their market knowledge to raise prices significantly. As shortages and prices rose, OEMs began redesigning products to remove hard-to-source components.

In response, some resellers, unable to sell their stock, responded by repackaging and remarking parts to resemble high-demand components. Today, millions of unwanted components are unused. Counterfeiters can buy them for a very low price.  After they convert them to look like an in-demand part they can sell them for a much higher price.

Protection against counterfeits

Buying components through Auckland International provides a high level of protection against counterfeits, for these reasons:

  • We have a worldwide network of established, reliable suppliers
  • We have years of experience.
  • We have been members of ERAI for more than 25 years. ERAI’s purpose is “to make the global electronic supply chain a safe business environment”. 

What is the IEEE?

The Institute of Electrical and Electronics Engineers (IEEE) is a global organisation dedicated to advancing technology for the benefit of humanity. It develops technical standards, supports research , and provides education, publications, and conferences.