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%.

The fall also occurred despite a 25.57% increase in global semiconductor sales. ERAI suggests that this difference may partly reflect the rapid growth in demand for complex, high-value components used in artificial intelligence infrastructure, which can be more difficult to counterfeit.

Which Components Were Most Frequently Reported?

Programmable logic integrated circuits were the most frequently reported component type, accounting for more than 15% of the total. Analogue ICs, microprocessors and memory ICs also represented a substantial proportion of the suspect and nonconforming parts reported during the year.

Of all the parts reported:

  • 55.34% were classified as suspect counterfeit
  • 31% were classified as nonconforming
  • 13.5% were classified as both nonconforming and suspect counterfeit

This means that 68.84% had some form of suspect-counterfeit classification.

Electrical Testing Alone May Not Be Enough

One of the report’s most important findings concerns component testing. Around 24% of the parts classified as suspect counterfeit passed electrical testing.

This demonstrates why electrical testing should not necessarily be used in isolation. Counterfeit components may function correctly during an initial test but still have false markings, concealed alterations, incorrect specifications or a shorter operational life than genuine components.

ERAI recommends a more comprehensive approach for components intended for high-risk applications, particularly when they have been sourced from the open market without full traceability. Depending on the component and the associated risk, this may combine electrical testing with visual inspection, X-ray examination and other appropriate methods.

Counterfeiting Is Not Limited to Obsolete Components

Obsolete parts continued to be the most commonly counterfeited, representing 60.02% of reported components. However, active components accounted for 36.15% of reports.

This challenges the assumption that counterfeiters concentrate exclusively on obsolete or especially difficult-to-find parts. Even components that remain available through authorised distribution channels may be targeted.

The range of manufacturers affected is also expanding. During 2025, 23.37% of the brands appearing in reports were new to ERAI’s annual data. This indicates that buyers cannot assume that components from smaller or less frequently targeted manufacturers present little risk.

Furthermore, 81.1% of the parts reported in 2025 were new occurrences. A part that has not previously appeared in ERAI’s records should not, therefore, automatically be considered low risk.

A Global Supply Chain Problem

More than 61% of the reports received during 2025 came from organisations outside the United States, demonstrating the international scale of the problem.

Independent distributors submitted 48.26% of reports, while third-party testing laboratories accounted for a further 32.17%. Contract manufacturers, original component manufacturers and original equipment manufacturers provided the remainder.

The findings demonstrate the value of organisations sharing information. Every credible report adds to the industry’s collective knowledge and may help another business avoid purchasing counterfeit or nonconforming components.

What Does ERAI Do?

Founded in 1995, ERAI collects and shares information about counterfeit and nonconforming electronic components and organisations associated with supply chain problems. Its resources help members investigate parts and suppliers, identify previously reported risks and make better-informed purchasing decisions.

Its information is supplied by organisations including independent distributors, manufacturers and specialist testing laboratories. By bringing this intelligence together, ERAI gives its members greater visibility of risks that may otherwise be difficult to identify.

Why Auckland International’s ERAI Membership Matters

Auckland International has been an ERAI member since 1998. This long-standing membership forms an important part of our approach to quality assurance and supply chain risk management.

When sourcing obsolete and hard-to-find electronic components, buyers may need to look beyond authorised distribution channels. ERAI’s industry intelligence helps us evaluate potential risks associated with components and suppliers before purchasing decisions are made.

Membership does not replace careful supplier selection, traceability checks, inspection or testing. Instead, it provides an additional source of information that strengthens these processes. For our customers, this means that components are sourced by a company with access to established industry intelligence and more than 25 years of active involvement with ERAI.