Home page     Aout us   F.A.Q.   Careers   Contact us
Monthly Inspection Services
Professional IC Inspection And Testing
Purchasing Agent
Open China Office


Labels show the origins of US sourced e-Waste
(Taken from e-Waste located in Guiyu, China)


Incoming truckload of e-Waste for processing
(Photo taken in Nanhai, China)


'Disassembly' of e-Waste for further processing
(Outdoor factory located in Nanhai, China)


Factory worker crudely extracting pcb parts
(Photo taken by ChipChecker)


Sorting and batching the extracted, cleaned parts
(Photo taken by ChipChecker)


Re-packaged product in Shenzhen 'I.C. Mall'
(Photo taken by ChipChecker)

Images of Counterfeit Packaging and Labeling

Images of Bulk Components

Images of Used or Pulled Components

Understanding and dealing with the risks in China

Buying components from China is a very risky business. Anytime you source parts outside of franchised distribution, you risk receiving sub-standard parts from mainland China. ChipChecker assists you to purchase parts safely and directly from the China market.

The Dilemma

The majority of electronic products manufactured globally are made in China. The China market is awash in electronic components and you often find sources of parts there that can be found nowhere else.

The problem is how do you purchase the parts safely in a market notorious for fraud, counterfeit and other shady dealings?

Avoiding China Is Not An Option

Some companies take a 'no China parts' policy but this is futile. Parts may be sourced from anywhere in the world but still originate from the China market if they are not from a franchised distributor. The risk is always there that your supplier's supplier may have sourced them from China. You have no guarantee that somewhere back in the chain of supply the parts are not of mainland China origin.

The safest option in fact is to source from China yourself, using the services of ChipChecker.

Recycled and Counterfeit Parts

Every year, the U.S. alone dumps millions of tons of e-Waste - scrap electronic products. The majority is exported to mainland China, where recycling this waste is a large industry.

Plastics and metals are ground down and recycled. The components are removed, cleaned, repackaged and resold.

When you buy a taped reel of chips in China, it may be the original product. Often however, it is recycled parts, crudely removed from a scrap pcb, cleaned and repackaged.

Aside from being already used, the removal process usually involves heat and stress far in excess of the components' tolerances and never in an antistatic environment.

These recycled parts may look the real deal - but they are not.

Then you have straight out counterfeit. Integrated circuits use a variety of standard packages. Part numbers can be ground off of a ten cent part and replaced with a part number for a ten dollar part that comes in the same package.

By the time you put the parts into manufacturing and discover the problem the supplier is long gone.

Traditional Measures Don't Work

Most importing is done with the protection of a Letter of Credit. The L/C is paid against documents with no inspection required, so you have no safety there.

Some buyers insist on the supplier sending a photograph of the parts first. China fraudsters have excellent photo libraries and staff well trained in editing photos as required.

The only safeguard is to have a trained professional inspect the components you are buying BEFORE they are paid for. Nothing less will give you any margin of safety.

Effects on Business

Companies in the West have been bankrupted through the careless purchase of China parts. When a component fails in a manufactured product the manufacturer may need to issue a total recall. In addition they may be sued for consequential loss or other liability.

Yes, using ChipChecker adds a little to the cost of your parts.

So does insuring your business, having an airbag in your car, or maintenance in the aviation industry.

 

"The amount of e-Waste sent to China in one year could fill a one acre lot 674 feet high - more than twice the height of the Statue of Liberty and taller than Seattle's Space Needle..."
Carnegie Mellon University, U.S.A.

"Try to avoid buying from China, unless it is from a trusted source, it's our experience that this is where a lot of the counterfeit components originate from. In many cases payment is requested in advance. It is extremely difficult to get your money back if you have paid up front and unfortunately you will be stuck with the worthless counterfeit goods..."
Engineer Live Magazine

"There has been an incredible influx of counterfeit material from China to the point where counterfeit versions of virtually every electronic component are readily available... ...Out of certain areas in China, they're counterfeiting everything. If the price seems too good to be true, it usually is..."
Green Supply Line Magazine

"A marketing executive from a well-known semiconductor company was at a trade show in Beijing. A well-dressed woman approached him with a portfolio of labels. Each label was from a prominent component supplier. Her China-based company could make components - cheap - and label those components with the name of a major supplier..."
ESB Source

"Ample reports come out of trade shows in China where salesmen (and saleswomen) brazenly canvass the floor with a basket of goods and a handful of fake labels offering to sell as many of the counterfeit parts as the prospective buyer needs - branded with the genuine company's logo..."
RF Cafe Magazine

"Counterfeit components continue to be a problem. In some cases components being sold in China are just shells, or sometimes a part may not have the performance requirements that they are supposed to have. In other cases, a part carries the name of a leading manufacturer, but it is in fact a knockoff..."
Purchasing.com

"Last fall, AMD conducted some raids in Europe, where it had found that some of its microprocessors, which can sell for an average price of $100, were being remarked. That is, the low-speed, low-priced microprocessors were being re-labeled as high-speed, high-priced chips. The company found a connection to some resellers in Shenzhen, China, and sent an undercover agent to purchase some microprocessors at one of the shops. It analyzed the chips and found they were fakes..."
Electronics Supply & Manufacturing

"Every company has been burned by counterfeit components... ...If they tell you they haven't, they're probably lying..."
Electronic Design News

"There have been many instances of severe safety failures resulting in injury and even death because of counterfeit components in electrical goods. When this happens the damage to reputation is harmed in a way that is difficult to repair..."
4IPR Organization

 
ChipChecker Ltd., Level 30, Bank Of China Tower, 1 Garden Road, Central, Hong Kong
 Hong Kong Telephone: (852) 2251 1790 Hong Kong Facsimile: (852) 2251 1791
USA/Canada Telephone: +1 780 628 4484 USA/Canada Facsimile: +1 780 628 5742
Copyright © All rights Reserved 2007