2022 Annual Report

In 2022 ERAI reported a total of 768 suspect counterfeit and nonconforming parts showing a marked increase over the last three years. From 2021 to 2022, there was an increase of 35% in the number of reported parts despite global semiconductor sales remaining flat during the same time period. Factors that may have contributed to the increase include a return to pre-Covid operations for many companies and the reopening of supply chains globally.

Reported Parts vs. Global Semiconductor Sales 2005-2022

We then looked at the types of parts that were reported to ERAI in 2022 compared to the last 5 and 10 years. In 2022 we can see that the distribution of the components most commonly counterfeited remained unchanged compared to the last 5 and 10 years with analog ICs, programmable logic ICs and microprocessor ICs remaining the most targeted component types and accounting for more than a half of all reported component types. It also appears that the spike in capacitor counterfeiting observed during the last 5 years has ended as in 2022 the numbers of reported capacitors has returned to pre-spike levels.

Types of Electronic Components Reported to ERAI in 2022

Reported Parts Types Reported in 2022 vs. Last 5 and 10 Years Periods

When we examine the trend chart of most commonly reported component types over the last 8 years, we can better view the ending of the capacitor spike. Moreover, we can observe that while all other component types have undergone a marked increase in the last year, analog devices have shown the largest year-to-year increase since ERAI has tracked this data. It will be interesting to see if this trend continues in 2023 or if it is limited to just a one-year occurrence.

Reported Part Types

When examining the manufacturers’ brand marked on parts reported to ERAI, Texas Instruments was the most commonly counterfeited mark. This marks only the second time in a 10-year span that Xilinx is not the most commonly reported brand. The only other brand to have the top spot in 10 years was Murata, during the capacitor spike seen in 2019. The share of reported components labeled as Texas Instruments increased from 4.8% overall in 2021 to 10.3% in 2022.

Top Manufacturer's Brands Reported in 2022

Top Manufacturer's Brands Reported in 2021

Analysis of parts previously reported by ERAI has revealed that the majority of the parts reported in 2022 (80.5%) were new occurrences that had not previously been reported to ERAI. Of the 19.5% of previously reported parts, only a small fraction was reported more than once. This indicates that organizations must be extra vigilant when sourcing parts as previously unreported counterfeit parts are constantly entering the electronics supply chain and the threat of encountering one of these parts remains very high. Reporting suspect/counterfeit parts is a crucial step in counterfeit avoidance and we highly encourage all companies to report suspicious parts to ERAI to ensure all organizations in the electronics industry are aware of potential threats. Parts can be reported to ERAI by anyone regardless of ERAI membership by sending your report to reportparts@erai.com or through our online reporting interface at https://www.erai.com/submit_high_risk_part.

https://www.erai.com/submit_high_risk_part

New vs. Previously Reported Parts in 2022

When looking at the availability status of parts at the time of reporting, we discovered that 62.2% of parts reported in 2022 were classified as “active” parts and only 32.5% were classified as “obsolete” and “NFND (not for new design)”. This data seems to question the notion that if you do not buy obsolete parts, you are less likely to encounter counterfeit parts. It should be noted that, while a majority of the parts reported to ERAI in 2022 consisted of parts that were generally available in the market, the data set cannot account for parts that are allocated or have long lead times.

Status of Parts at the Time of Reporting 2022

The next data set we examined was the geographic location of the suspect parts’ suppliers in cases where the supplier information was available. In the past, more than half of the suppliers of suspect parts were located in the USA, with China being a distant second. However, in 2022 suppliers from the USA and from China were in a virtual tie. It should be noted though that many times reporting organizations may be more hesitant to disclose the supplier of the counterfeit components if the parts were purchased from China. Overall, 45.4% of reported parts originated from Asian suppliers, 37.3% from North America and only 17.3% from Europe.

Geographic Location of Known Suppliers of Parts Reported to ERAI in 2022

We then looked at the organizations that reported parts to ERAI. First, we examined the geographic location of the reporting entities. We found that, much like previous years, most reports came from entities located in USA (65.3%) followed by Europe (22.7%) and Asia (11.9%). Therefore, a total of 34.6% of reported part data received by ERAI originates from sources outside of the US.

Geographic Location of Entities Reporting Parts to ERAI in 2022

We then examined the types of organizations that reported suspect counterfeit and nonconforming parts to ERAI. The largest segments of reporting organizations consist of independent distributors and test labs (63.5% and 30.4% respectively). Manufacturers, Authorized Distributors and “Others” were collectively responsible for 6.1% of reported parts.

We encourage all organizations in the electronic supply chain to report counterfeit and nonconforming components encounters to ERAI. Reporting to ERAI is completely confidential. We understand that some organizations fear brand damage and/or liability repercussions and that is why ERAI does not disclose the name of the reporting company. While we value additional information that you can provide including the supplier’s identity, first, and foremost, we want to ensure that your colleagues throughout the electronics industry are aware of the immediate threat posed by the counterfeit/nonconforming parts you have encountered. Reporting parts to ERAI ensures the counterfeit product you encountered is less likely to find its way into critical applications.

Types of Entities Reporting Parts to ERAI in 2022

In summary, 2022 results closely matched our expectations of a “post-COVID transition” year where supply chains were reestablished and the world returned to “business as usual”. As always, we would like to thank those organizations that routinely share data with ERAI. If you have any questions or would like to see any statistical data that has not been covered in this report, please contact Damir Akhoundov at damir@erai.com and we will do our best to provide the information to you.