The rise of counterfeit and nonconforming parts is an industry challenge that continues to grow. In 2024, the global reporting platform ERAI logged 1,055 suspect counterfeit and nonconforming electronic parts. That is a 25% increase on the previous year and the highest figure since 2015. Behind each of those cases is a business left managing the impact, from costly rework to warranty claims and reputational damage.
Why counterfeit components make it into supply chains
Counterfeit components are not confined to low-cost or obscure markets. They can find their way into legitimate supply chains through grey-market brokers, overstock resellers or even well-meaning suppliers who are unaware of their own sourcing vulnerabilities. The most sophisticated counterfeits are repackaged, relabelled or even recycled from scrap electronics to pass as new. In many cases, it takes advanced testing to uncover the truth.
Global supply chain pressures
Market conditions can make the counterfeit problem worse. During periods of shortage or extended lead times, businesses under delivery pressure may feel they have no choice but to source through unverified channels. A deal promising immediate availability can seem attractive when production schedules are at risk. Yet these conditions are precisely when counterfeiters are most active. The short-term gain of securing parts quickly is outweighed by the long-term cost of product failures.
How to avoid counterfeit components
Working with authorised distributors remains one of the most effective ways to reduce counterfeit risk. These distributors have direct agreements with the original component manufacturers, creating an unbroken chain of custody from production to delivery. Every part is backed by the manufacturer’s warranty, complete with full quality certification and traceability. At Active EMS, we source exclusively through authorised channels and trusted franchised suppliers who meet our quality benchmarks. This is a deliberate choice to protect our clients’ production lines and reputations.
By building strong partnerships with our authorised distributors and suppliers, we are able to secure priority access to stock, especially during periods of high demand. Beyond just sourcing parts for individual PCB assemblies, we maintain a warehouse of common components. This strategic stockholding helps us avoid the price fluctuations that often affect the market.
By purchasing key components in advance and holding inventory, we can smooth out supply chain uncertainties and pass these cost savings directly to our clients.
Protecting your PCB assembly investment
Counterfeit components will continue to be a risk for manufacturers, but that risk can be managed. Working with a PCB assembly partner that sources exclusively from authorised distributors creates a supply chain that is secure, transparent and resilient. At Active EMS, this approach is supported by our in-house inspection and testing processes, ensuring every board we deliver meets the specification and reliability standards our clients require. Whether for high-volume runs or specialist projects, our commitment to authorised sourcing protects both the immediate production needs and the long-term performance of your products.
If you would like to talk about how we secure PCB supply chains against counterfeit risk while meeting both technical and commercial requirements, our team is ready to help.