We have been members of ERAI since 1998 because we want to protect our customers, and the wider market, from counterfeit electronic components. Their report for 2024 gives an accurate summary of the current situation regarding counterfeits.

Key insights and industry trends

In its 2024 Annual Report ERAI presents a comprehensive overview of enduring trends in the reporting of suspected counterfeit and non-conforming electronic parts, noting both stability and emerging patterns deserving careful attention.

An overall increase in reports of counterfeit components

In 2024, ERAI recorded 1,055 suspect counterfeit and non-conforming parts, marking a 25% year-on-year increase and representing the highest total since 2015. However, this notable rise results from two primary factors: a global surge in semiconductor sales (from US $526 billion in 2023 to US $588 billion in 2024), and a single batch of 248 counterfeit fan assemblies reported in May 2024 by the U.S. Government. When excluding this batch, the underlying increase in reports is a modest 3%, consistent with growth trends observed in recent years.

The types of components targeted by counterfeiters

The top reported category for 2024 was labelled “Other”, primarily due to the bulk report of fan assemblies. Excluding that anomaly, the distribution of suspected counterfeit parts aligns with historical pattern: Analog ICs, Microprocessor ICs, Memory ICs, and Programmable Logic ICs remain the most frequently reported categories. The reporting of suspect capacitors continued to decline dramatically—from 165 units in 2019 to just 6 in 2024.

The brands most frequently targeted

A previously lesser-reported brand, 3ON Systems, rose to prominence in 2024, but this was again due to the 248 fan assemblies. Excluding this batch, the traditional brands most frequently targeted remained consistent with prior years. Interestingly, components branded by Xilinx, historically the most targeted brand, fell to fifth place in 2024, indicating a shift in counterfeiters’ focus. 21% of all brands reported in 2024 were new to the ERAI database, and 29.4% of parts were associated with brands that had never been reported before, suggesting counterfeiters are increasingly broadening their target pool.

Are obsolete parts the main target?

There is a common and longstanding assumption that obsolete components are the most vulnerable to counterfeiting. In 2024, while obsolete parts accounted for 42.75% of reports, active parts, including those readily available via authorised channels, accounted for 27.2%. Readily available active parts were reported twice as often as active parts with long lead times, implying that widespread availability may not significantly deter counterfeit activity.

Are the same parts repeatedly targeted?

The vast majority  of parts reported in 2024 were new to the ERAI database. Only 8.4% were previously reported once, and 6.27% were reported multiple times. This persistent pattern highlights that novel part types continue to be introduced into the counterfeit supply chain.

Where reports come from

Reports came almost evenly from U.S. (51%) and international entities (49.7%), signalling a truly global detection effort. Third-party test laboratories accounted for the largest share of reporting at 37.35%, followed by independent distributors at 31.85%. OEMs, OCMs, and CMs contributed just 5.78% to the total, indicating that manufacturer participation in detection remains comparatively low. Notably, the U.S. Government’s reported counterfeit fan assemblies made up 23.51% of the total reports.

The key takeaways

  • The number of counterfeit and non-conforming parts reported continues to rise, although much of the 2024 spike is due to a single large batch.
  • Counterfeiters persist in targeting both active and obsolete components, challenging assumptions about part vulnerability.
  • There is a diversifying range of brands being affected, with new brand targets emerging.
  • The problem remains mostly dynamic, with most parts are reported for the first time, illustrating the evolving nature of counterfeit threats.
  • Reporting efforts are global and rely heavily on third-party labs and independent distributors, with limited data sharing from manufacturers.

The consequences for buyers of electronic components

ERAI reiterates the importance of continuous vigilance, encouraging all industry organisations to report suspect parts to strengthen collective awareness across the electronic supply chain.

These findings underscore the persistent risks associated with counterfeit electronic components, even those available through authorised channels. Buying the obsolete components you need through us gives a high level of protection from counterfeits.  You can see current stock holdings for the parts you need here.