Minimizing Expenses in Industrial Supply Chain Operations
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In the semiconductor industry, “blacktopping” doesn’t mean paving roads or sealing cracks in an old driveway; it’s resurfacing a semiconductor component to display new information such as date codes. Unfortunately, blacktopping is getting a bad rap because counterfeiters use this practice as a way to disguise devices as “real” when, in fact, they are the product of board pulls or illegitimate devices.
When the word “blacktopping” is thrown around in the chip world, it is automatically discarded into the pile of bad words never to be used again. Customers within the semiconductor industry automatically associate the word with counterfeiting. Why? For decades counterfeiters have blacktopped non-functioning and illicit chips and sold them into the supply chain. In this case, yes, “blacktopping” deserves any and all negative undertones.
But what a lot of people do not know is that a counterfeiter’s process varies significantly than that of an original component manufacturer (OCM), who uses blacktopping methods as a way to update device information for customer use. OCMs use blacktopping to cover up old information so that there is no confusion about when the device was manufactured tested and where it all took place.
So how can buyers tell good blacktopping from bad? That’s easy. Buyers should procure components strictly from authorized sources and avoid the gray market supply chain. Resources are readily available: the Authorized Directory, for example, was established specifically to help customers locate OCM-authorized suppliers in any given region. By using resources such as the Authorized Directory, counterfeits are easily avoided, and issues such as blacktopped devices will no longer raise a red flag.
George Karalias, is director of marketing & communications at Rochester Electronics.
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Most of todays “counterfeit” electronic were generated in a factory where the “real” product was made. The outsourcing to China created this problem where a majority of companies no longer own their manufacturing and constantly pressure the vendors making their part for lower pricing. A way to lower the bid is to conduct the requested parts run and then continue production to be sold on the Black Market. So most counterfeit product is actual 100% real but sold through channels without compensating the manufacturer. These companies could have prevented this from happening if the had kept their manufacturing in house and in the USA. I for one am glad to see that off-shoring that destroyed the USA’s economy is a double edged sword and that these greedy companies are reaping a bit of what they sowed. Remember the solution is to simply bring the manufacturing home.
If blacktopping is a real problem I am sure a majority is being done by the companies that had the chips manufactured as a method of freshening up inventories. Read my post above to understand why they may be sitting on inventories. It is my feeling that the problem of Black Market, Gray Market, Counterfeit, and Blacktopped parts is just a symptom of the corporate greed that has gotten so out of control over the past few decades.
Regarding the practice of the OCM re-marking parts using the blacktopping methods. Some insight on this process (Why) they do it, When they do it and How they do it would be benificial to the community.I find it very interesting that thecanned response is always ” As long as you buy “BLACKTOPPED PARTS” from the authorized channels it is OK, however as soon as these parts fall outside the supply chain they are considered counterfeit….I have a solution to this whole mess…….The OCM’s should just use blacktopping on all of thier devices during the MFG process…this would instantly solve the grey market issue
I do understand the issue and the points raised but it’s the component industry that is at fault here. The package producers have never been clear about this practice, many of the semiconductor suppliers don’t tell their distributors. Having run training session for uses and suppliers alike there needs to be better communication. I have a few cases where distributors have returned stock sent back by customers only to be told they are OK don’t worry.
Suppliers say they never do it then do. Stepping back 5+ years before the problems became mainstream and news worthy the industry including the authors company did try and educate the industry. People are now more aware but the problem of blacktopping still exists and it may have created confusion. However it’s not just the counterfeits that were at fault was it?