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The first part of this story – reviewed the serious situation of having counterfeit electronic parts of dubious quality installed inside critical military and aviation systems.
Israeli experts say the fakes focus predominantly on integrated circuits, which abound in nearly any advanced electronic system. “These items cost between $50 and $1500, and they are mass produced, sometimes in millions of units.”
What motivated the counterfeiters? One expert says these units have a market worth billions of dollars, and the profit margins are high. So it is all very clear when it comes to the side of the fakers. But why do companies buy counterfeit parts?
“When you offer someone a unit that normally costs $200 for $80 or less, this poses a major temptation,” says one expert.
Another no less important reason is time to market. Sometimes, acquisition departments are stressed over delays in the chain of production, which could derail an entire project’s timetable. “When a certain supplier guaranteed delivery within weeks this is a big temptation,” explains an Israeli expert.
Another reason is to do with export licenses. Some parts, especially in the defense sector, require export license. Red tape is famously long and laborious worldwide, so if someone offers you these parts without all the paperwork, you take them up on their offer.
The fourth reason the expert cited has to do with military systems’ life cycle. Take a radar system for instance. Its average lifespan is no less than 30 years. Not all manufacturers and subcontractors continue making the same parts for the same system. So system operators have a problem at some point.
The expert also added “there are places in China where hundreds and thousands of workers dismantle outdated electronic systems and remove the electronic parts that can be reused in other systems.” This may sound efficient and economically sound, but it is far from it. Electronic parts are very sensitive to the touch. Sweat or human fat could damage them. Dismantling in China is far from being done in clean conditions, so the parts become faulty.
In addition, counterfeit parts come in various forms. Sometimes, the boxes come in with parts that do not even resemble the drawing on the box. Others come in faulty even though the manufacturer is a known company. How does this happen? The Israeli expert explains the manufacturers carry quality inspections, and the parts which do not meet the standards must be destroyed. “Nevertheless, this is not always done, so sometimes, an entire production series finds its way to the market.”
The problem is also known in Israel, where it is classified as “serious”.
Nowadays, awareness for this problem of counterfeit electronic parts is high worldwide, Israel included, but everyone is of the opinion the flood is so great, the problem cannot eliminated, but only minimized.
iHLS editor-in-chief
