Electronic components quality assurance best practices

Quality is critical in the electronic component supply chain. Electronic components are held to some of the highest quality standards. If they weren’t, the risk of product failures ranging from coffee makers to pacemakers would increase exponentially.

Manufacturing a single semiconductor chip involves hundreds of steps and can take up to three months to complete. OCMs must tightly control everything from air quality and temperature to technicians' uniforms to prevent defects. Semiconductor transportation uses specially designed containers to prevent chip degradation during ocean and continental travel.

For many OEMs, CMs, and EMS providers, concerns around component quality only amplify after production ends.

This is due to one ever-present threat: nonconforming components or counterfeit parts. The counterfeit goods market is worth approximately $467 billion, posing a significant risk to intellectual property and consumers. During periods of constrained supply, geopolitical uncertainty, or rapid shifts in demand, such as in the current AI-driven memory market, it becomes easier for bad actors to exploit gaps in the supply chain.

In a Wall Street Journal article, “What’s Worse Than a Chip Shortage? Buying Fake Ones,” author Stephanie Yang detailed how desperation pushed companies toward platforms they'd never considered. In this specific case, a New York-based 3D-printer manufacturer turned to AliExpress for chips. To no one's surprise, the chips arrived in plain plastic wrap and were nonfunctional.

However, this was a step many were forced to take during the 2021-2022 shortage. Now, we're in the midst of a heightened memory shortage with AI demand spilling over into adjacent component categories. Samsung, SK Hynix, and Micron are operating on allocation-only sales, with popular old models, like DDR4, going EOL. The spot market price for memory chips has been fluctuating rapidly since mid-2025, and remains highly elevated.  

This heightened strain on the supply chain opens the door for suspect counterfeits and nonconforming parts.

Counterfeit electronic components can enter any supply chain, even those believed to be highly protected. An estimated 15% of spare or replacement semiconductors purchased are nonconforming, the US Pentagon shared. In February 2022, three nuclear power plants found counterfeit components in their supply chain. In 2025, Dataquest, an India-based tech newspaper, reported that Anthony J. Bryant, an Electronics Component Engineer in Aerospace and Defense and an SAE G19A Subcommittee Counterfeit Electronics expert, noted that counterfeit electronics cost the industry over $100 billion annually.

Dataquest goes on to state that counterfeit parts cost the automotive industry $40 billion, the defense industry $32 billion, and the healthcare industry $25 billion. Furthermore, the breakdown of where these counterfeit components originated can be sorted into several specific categories, "with analog ICs representing 32%, memory ICs 14%, programmable logic ICs 12%, passive components 8%, power management 6%, and others 10%, respectively."

The more constrained the supply chain becomes, the easier it is for nonconforming parts to enter it. Additionally, counterfeit parts are becoming more sophisticated, slipping past uninformed technicians and older testing equipment. This is why having a routinely updated, stringent quality management system is necessary in today's memory-constrained environment.  

What is a quality management system, and what does it need?

A quality management system, or QMS, is "a structured framework that defines and documents an organization’s processes, procedures, and responsibilities for achieving quality policies, practices, and objectives." A QMS aims to reduce waste while improving customer satisfaction.

Not all quality management systems are created equal. Suspect counterfeits can enter a supply chain through a poorly maintained QMS. There are at least seven types of counterfeit components:

1. Recycled
2. Remarked
3. Overproduced
4. Out-of-spec
5. Cloned
6. Forged
7. Tampered

Research by the University of Florida found that suspect counterfeit components pose security and reliability risks to critical systems and infrastructure. Beyond lost capital, counterfeit parts reduce the incentive to develop new products and ideas, which affects global innovation, the economy, and employment.  

Detection remains an essential part of any quality management system, but today's most effective QMS extends far beyond inspection. A comprehensive approach incorporates supplier qualification, continuous supplier monitoring, internationally recognized certifications, risk-based inspection protocols, and advanced authentication testing to prevent suspect counterfeit components from entering the supply chain in the first place.

It is imperative when procuring components to determine whether a distributor has a proper QMS. The first step is to ascertain if a distributor is appropriately certified.  

AS9120B

AS9120B establishes quality management requirements specifically for aerospace and defense distributors. Beyond product traceability, it emphasizes supplier management, inventory control, risk mitigation, and continual improvement, helping distributors maintain consistent quality across complex global supply chains. Even outside aerospace, many manufacturers view AS9120 certification as evidence of a mature quality management system.

ISO 14001

ISO 14001 demonstrates a commitment to environmental management through standardized processes that reduce environmental impact while improving operational efficiency. For manufacturers increasingly evaluating ESG performance throughout their supply chains, ISO 14001 provides additional assurance that environmental responsibility is embedded into day-to-day operations.

As an organization that prioritizes sustainability at every level, from business decisions to inspection processes, ISO 14001 is an important part of that commitment.  

ANSI/ESD S20.20

ANSI/ESD S20.20-2007 is a company-level certification based on the ESDA standard. It is titled “Protection of Electrical and Electronic Parts, Assemblies, and Equipment (Excluding Electrically Initiated Explosive Devices).” This standard provides guidelines and test methods for controlling electrostatic discharge when handling electrical and electronic parts.  

Electronic component distributors must hold ANSI/ESD S20.20 certification, as it applies to all companies that design, manufacture, package, test, and/or handle electronic devices or equipment sensitive to electrostatic discharge. Electrostatic discharge is detrimental to electronic component performance, rendering them useless if the appropriate level of handling care is ignored.

AS6081

One of the most stringent certifications available, AS6081 is a military and aerospace standard that addresses counterfeit electronic parts. Created in response to the large number of counterfeit components entering the electronic supply chain, AS6081 establishes requirements and guidelines to mitigate these risks.

This specific standard builds on AS9100 or AS9120 certifications by adding additional requirements. For companies directly related to or involved in the aerospace and defense supply chain, this certification is required. As one of the strictest standards, it goes into great detail about how organizations should mitigate the risk of buying, receiving, and selling suspect counterfeit or counterfeit parts when purchasing them in the open market from brokers/distributors.  

Selecting a partner that prioritizes quality

Quality should come first to any electronic component distributor. Sourceability's own quality process is built around a multi-layered risk mitigation framework designed to safeguard every component we deliver. Rather than relying solely on inspection, our approach combines supplier qualification, continuous supplier monitoring, risk-based inspection, advanced authentication testing, and dedicated customer support to build confidence throughout every stage of the supply chain.

This is more important than ever, as supply challenges for memory components continue to impact small- to midsize companies globally. For those satisfied with their supplier base, use this step-by-step guide to compare with your partners during facility audits to ensure they adhere to best-in-class practices.

Before any component reaches our warehouse, suppliers undergo a structured qualification process focused on proven reliability, counterfeit prevention controls, regulatory compliance, quality performance, traceability, and continuous monitoring. Only suppliers that meet these requirements are approved for our Approved Vendor List (AVL), creating the first line of defense against counterfeit risk.

The part records should contain part data, including manufacturer, MFG barcode label data, part and item numbers, country/countries of origin, RoHS and lead-free status, and moisture-sensitive level (MSL). Additionally, most records are kept on the packaging type for components, such as tube, tray, tape, reel, bag, or other types.  

Once components arrive, inspection levels are determined using our risk-based model. Fully traceable components sourced directly from franchised distributors or original component manufacturers undergo Level 1 verification. In contrast, independently sourced components undergo additional authentication testing in accordance with the IDEA 1010 and AS6081 protocols, performed by certified inspectors.

Keeping accurate and detailed records helps track potential fraudulent components early on. As a member of the Electronic Resellers Association International (ERAI), Sourceability works tirelessly to detect and mitigate risks by reporting any suspect parts to the ERAI.  

Depending on customer requirements and sourcing risk, Sourceability performs advanced authentication testing including X-ray inspection, X-ray fluorescence (XRF) analysis, thermal decapsulation, marking permanency testing, solderability testing, solvent testing, critical dimension analysis, and high-resolution microscopic inspection. Additional testing can also be performed through certified third-party laboratories when required.  

Any one test can determine a chip's legitimacy at any time. The most conventional counterfeit component detection techniques are external visual inspection, marking permanency and blacktop examination, electrical inspection, X-ray inspection, XRF, or scanning electron microscopy. As counterfeiters continually improve their craft to produce more seamless counterfeits, further testing beyond conventional methods is often required.  

Quality management is an ongoing commitment. As supply chains evolve and counterfeit risks become more sophisticated, Sourceability continues to invest in advanced inspection technologies, globally standardized processes, internationally recognized certifications, and continuous training to help customers source authentic electronic components with confidence. Whether you're evaluating a new supplier or auditing your existing quality program, our team is ready to help you strengthen your supply chain.

Want to learn more? Well, we're just getting started. Our next article looks into quality management and reviews the step-by-step methodology in creating a strong quality mitigation process. Join us for part two of Sourceability’s quality management system deep dive.