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TOKYO -- Electronics makers grappling with an unprecedented global chip crunch are increasingly turning to unconventional supply channels to meet their needs -- and many are getting stuck with knock-off, substandard or reused semiconductors.
Junichi Fujioka, CEO of Japanese electronics manufacturer Jenesis, has experienced this phenomenon first hand.
Unable to procure microcontrollers from its usual sources, his company's plant in southern China placed an order through a site run by Chinese e-commerce giant Alibaba. When the microcontrollers arrived, however, they failed to turn on.
An expert who examined the chips at the Tokyo-based company's request found their specifications differed totally from what Jenesis had ordered, even though the manufacturer's name on the packages appeared to be genuine.
Jenesis, which had already paid for the order, scrambled in vain to get in touch with the supplier.
It is a cautionary tale for electronics makers tempted to buy "chips in distribution," a term referring to chip inventories sold by sources other than manufacturers and authorized distributors. Such chips carry no warranty from the producers and it is often unclear where and how they have been stored, which makes it easier for suspicious products to slip into orders, industry officials say.
Such products can include chips taken out of discarded electronic equipment and passed off as new, or chips that failed to meet quality standards and should have been disposed of. There are also malicious cases where the manufacturer's name or model number on the package is falsified.
asia.nikkei.com
Junichi Fujioka, CEO of Japanese electronics manufacturer Jenesis, has experienced this phenomenon first hand.
Unable to procure microcontrollers from its usual sources, his company's plant in southern China placed an order through a site run by Chinese e-commerce giant Alibaba. When the microcontrollers arrived, however, they failed to turn on.
An expert who examined the chips at the Tokyo-based company's request found their specifications differed totally from what Jenesis had ordered, even though the manufacturer's name on the packages appeared to be genuine.
Jenesis, which had already paid for the order, scrambled in vain to get in touch with the supplier.
It is a cautionary tale for electronics makers tempted to buy "chips in distribution," a term referring to chip inventories sold by sources other than manufacturers and authorized distributors. Such chips carry no warranty from the producers and it is often unclear where and how they have been stored, which makes it easier for suspicious products to slip into orders, industry officials say.
Such products can include chips taken out of discarded electronic equipment and passed off as new, or chips that failed to meet quality standards and should have been disposed of. There are also malicious cases where the manufacturer's name or model number on the package is falsified.
Fake chips slipping into supply chain, industry insiders warn
Semiconductor shortage pushes electronics manufacturers to risky procurement
asia.nikkei.com
