Counterfeit electronic components (most notably and for the purpose of this policy considered to be integrated circuits) are becoming an increasingly prevalent problem throughout the electronics industry. This problem is especially significant for electronics manufacturing service (EMS) providers such as Technical Manufacturing Corporation that specialize in high-reliability contract electronics manufacturing services to the medical, automotive, aerospace and defense industries. To these companies where any compromise in the safety and performance of the electronics assembly simply cannot be tolerated, it is of critical importance for them to take an offensive procurement posture to eliminate this risk.

It has been recently estimated by the Alliance for Grey Markets and Counterfeit Abatement (AGMA) that the cost of counterfeit electronics components over all levels of the electronics industry is over $100 billion annually. With the growing state of this problem and significant costs involved, no company that uses electronic components can expect to be immune to it and needs to take immediate proactive steps to address it before irreparable damage occurs. Damage in this case is not exclusive to safety but also includes a company's reputation and their relationships with their customers, who will also be affected. Small companies in particular are most susceptible and vulnerable to the unwanted affects caused by exposure to counterfeit components and they must be even more diligent not just in the procurement area but in their overall operations in order to successfully address this growing problem.

We are committed to eliminating the entry of counterfeit electronics components into our facility by mandating the exclusive use of factory-direct or their authorized distributors only as approved vendors for component procurement. Component brokers or other unauthorized distributors where the exposure to refurbished, reclaimed, reverse-engineered, remarked or rebranded components is greatest are not used for procurement sources. Additionally, lot code control is fully maintained throughout our facility for procured parts to further eliminate any exposure to counterfeit electronic components. Lot codes are captured during materials receipt and managed throughout the production process up to and including finished product receipt by the customer in order to realize complete two-way materials traceability.

Please contact us at any time during normal business hours with any questions or comments concerning our counterfeit electronic components policy.

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