Counterfeit Electronic Parts

SAE AS6081& &

The Way Forward

Conference on Quality in the Space and Defense Industries

March 16, 2010

Brian Hughitt NASA Headquarters OSMA

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Sources of Counterfeiting

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Sources of Counterfeiting

“Most broker organizations are very small and do not have established quality control procedures in place. We have more than 10,000 brokers in our database. Of those only 200 have more than 10 employees and quality control procedures for their staff. That leaves us 9,800 to fall victim to. Many

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staff. That leaves us 9,800 to fall victim to. Many brokers are working out of their home. All someone needs is a phone, fax and e-mail address and they are in business.”

American Electronic Resource, Inc.

SAE AS6081Counterfeit Electronic Parts Avoidance- Distributors

Ground Rules/Assumptions:

• Applicable to IDs / Brokers / 3PL Providers only

• Assumes compliance with formal QMS program

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• Counterfeit Parts Control Plan Concept

• Distributor Capabilities

Counterfeit Parts Control

Plan

Parts Availability

SAE AS6081 Requirements

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PurchasingVerification of

Purchased Product

In Process Investigation

Purchasing Information

Material Control

Reporting

Appendixes with

Requirements & Guidance

Quality Management System

Counterfeit Parts Control Plan

…The organization shall develop and implement a quality management system (e.g, ISO 9001, SAE AS9120 …

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… The organization shall develop and implement a counterfeit electronic parts control plan that documents its processes used for risk mitigation, disposition, and reporting of counterfeit parts…

Purchasing Process

Source of Supply

• Determine risk of receiving counterfeit part…• Actions may include surveys, audits, review…• Specify a preference to procure directly from OCMs…

• Maintain a register of approved suppliers

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Approved Suppliers

• Maintain a register of approved suppliers• Requirements on source selection and approval process• Assure sources of supply are maintaining processes for counterfeit risk mitigation

Risk Mitigation

• Source selection criteria shall consider:• Unresolved documented problems…• Use of qualified laboratory testing facilities…• Acceptable terms for product warranty, returns and liability; financial means to

support…

Purchasing Information

Supply Chain Traceability

… The process shall specify contract/purchase order quality requirements … including the flow down of applicable requirements of this document …

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document …

…The documented processes shall require … traceability to the OCM… If unavailable, the customer shall be notified…

Verification of Purchased Product

…The documented processes shall specify test and inspection methods for the detection of counterfeit parts…Results of each inspection

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and test performed shall be documented, retained, and traceable to product information …

Material Control

Reporting

Material ControlShall specify methods to control suspect or confirmed counterfeit

parts …

Shall…preclude their reentry into the supply chain …

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Reporting

Shall require that all occurrences of counterfeit parts are reported…

The Way Forward

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ResourcesWork Groups/Committees/Associations

• US Chamber of Commerce Coalition Against Counterfeiting and Piracy (CACP)• Semiconductor Industry Association (SIA) Anticounterfeiting Task Force (ACTF)• SAE G-19 Counterfeit Electronic Parts Technical Committee• Center for Advanced Lifecycle Engineering (CALCE)• Surface Mount Technology Association (SMTA)• TechAmerica G-12 Counterfeit Task Group • Aerospace Industries Association (AIA) Counterfeit Parts Integrated Process

Team

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• Aerospace Industries Association (AIA) Counterfeit Parts Integrated Process Team

• International Microelectronics and Packaging Society (IMAPS)• Components Technology Institute (CTI)• NASA Quality Leadership Forum (QLF)• Independent Distributors of Electronics Association (IDEA)• ERAI• SEMI• DoD trusted Defense Systems Workshop• DoD Trusted Foundry Program• Defense Logistics Agency (DLA) Counterfeit Parts Integrated Process Team

(IPT)

SAE G-19 Technical Standards

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1. Buyers

SAE AS5553

2. Distributors

SAE AS6081

3. Test LaboratoriesSAE ASxxxx

Accreditation/Certification

3. Test Laboratories

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1. Buyers

2. Distributors

Laboratories

SAE G-19 Test & Inspection Matrix Subcommittee

Standardize Test & Inspection Requirements Across Industry

Type of Part

Test Matrix – testing performed by certified test laboratories (Asxxxx)

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Part

Testing Technique

Testing Tier

Sampling Plan

Risk Based Recommendations

Application Part Supplier

Training Opportunities

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Training (cont)

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Resources

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Resources (cont)

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Resources (cont)

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Resources (cont)

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Resources (cont)

• Pre-qualified distributors• Semiconductors and

Microcircuits• Distributors with demonstrated

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• Distributors with demonstrated quality assurance practices

• Qualification based on JESD31 QMS requirements, e.g.: - Traceability- Certificate of Compliance- Handling and storage

US Chamber of Commerce Coalition Against Counterfeiting and Piracy (CACP)

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Semiconductor Industry Association (SIA)Anticounterfeiting Task Force (ACTF)

• Goal is to stop counterfeit IC’s from entering the

global marketplace through education, awareness

and enforcement

• Aligns with the China RECS program

• Aligns with the China QBPC

• Partnered with and trained US Customs in

detection of counterfeit IC’s

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detection of counterfeit IC’s

• Partnered with DoD, NASA, NCIS, FBI criminal

investigators

• Actively Seeking cooperative efforts with United

States, China and European Union officials.

• Partnered with the DOJ/DHS National IPR

Coordinating Center to investigate and prosecute

importers of counterfeit semiconductors

• Working with outside counsel to gather and

collate industry data for case development and

presentation to law enforcement and IPR Ctr

Authentication Service Provider ModelSEMI T20 System Architecture for Preventing/Detecting

Semiconductor Counterfeit Products

1. Manufacturer asks for encrypted number

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2. Secure serverprovides number

3. Product ships toplaces unknown

4. Buyer validates numberbefore use

Customs and Border Protection

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Title 18, United States Code- Proposed Legislation -

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Report to Congress

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Draft OMB CircularMandatory GIDEP Reporting

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http://www.businessweek.com/magazine/content/08_41/b4103034193886.htm?chan=top+news_top+news+index+-

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http://www.businessweek.com/technology/special_reports/20100302ceo_guide_to_counterfeit_tech.htm