A shortage of semiconductors… Counterfeit chip damage

As demand for COVID-19 surges, all companies, from smartphones to automobiles, are suffering from a shortage of semiconductors. Meanwhile, there are reports that semiconductor fraud companies are selling counterfeit chips to companies.

Reportedly, these semiconductor scammers are targeting companies desperate to procure chips amid a severe chip shortage. Lead times from ordering genuine chips to delivery can reach half a year, so it’s not uncommon to get a notice that parts are out of stock even when you order a new car. Scammers are starting to promote their products through search engine advertisements, but there is little room for regular chip-making in these places. There are various fraud methods, such as shipping crude semiconductors and non-working semiconductors, and not sending the product after receiving the payment for the chip in advance.

According to Infotech Research analyst John Anand, the scams occur in the form of buyers being forced to first finance a web-based chip seller, who started in haste, and hastily shut down the website when the promised product arrives, losing hope of relief.

To make matters worse, they don’t want to tell their competitors that they’ve been scammed, and they don’t want to disclose what they’ve been cheated on. Thus, rumors alone do not deter fake sales. Synopsis Chief security engineer Mike Borza says the second reason victims want to hide is that they don’t want to admit they lack the knowledge and supply chain management to prevent unauthorized use of chips.

It may seem good to increase the supply according to the demand for chips, but it is not easy. Not only does it cost a lot to build a chip manufacturing plant, but it takes a year and a half to two years to complete. The introduction of modern equipment in an older plant can in theory increase production capacity, but it is also costly.

Selling counterfeit chips can have serious consequences. There is also the possibility of misbehaving under certain conditions or of failing sooner than the normal life expectancy. This can lead to credibility or return issues and undermine customer trust in the manufacturer. Read more here .