Just before the holidays in December 2015 the U.S. Attorney’s office in Connecticut was quite busy: three Chinese nationals were arrested and held on federal criminal complaints pertaining to counterfeit Xilinx components and stolen, military-grade semiconductors from the U.S. Navy that were set to be exported from the United States. On the same day, Jeffrey Krantz was sentenced for his part in a case involving distributor Harry Krantz Co. Jeffrey Krantz was charged with supplying customers “[…] with falsely remarked ...

http://mil-embedded.com/4643-counterfeit-electronics-persistent-and-still-present/

Counterfeit electronics is a persistent matter that will be not easily go away, says Michael Cacheiro, vice president, supply chain management at Lockheed Martin. Incidents will continue to increase, as “counterfeit electronics used by the military increased by 250 percent between 2005-2008 and quadrupled from 2009-2012,” and 21 percent comes from authorized distributers.

He made his comments ten minutes from my office at the American Aerospace & Defense 2015 summit. During Cacheiro’s presentation on counterfeit electronics, he discussed how ...

http://www.electronicsweekly.com/news/business/fbi-arrests-counterfeit-chip-traffickers-2015-12/

The U.S. Department of Justice is bringing criminal charges against three Chinese nationals for trafficking in stolen Intel and Xilinx chips.

The three defendants are charged with illegally redistributing military semiconductors and selling counterfeit hardware to US military contractors.

“In October 2014 and in March 2015, Yan (Ben Yan, one of the three men charged) sold a total of 45 counterfeit Intel microprocessors to an undercover agent who had advised Yan that the components would be used on a U.S. ...

http://globalpurchasing.com/purchasing-confidence-surges-september?NL=ESB-01&Issue=ESB-01_20151008_ESB-01_385&sfvc4enews=42&cl=article_1&utm_rid=CPG05000002126099&utm_campaign=3719&utm_medium=email&elq2=b60403f74cb9471b94154f179e46abdc

More buyers of electronic components expressed a positive outlook on the economy in September, as the Global Purchasing Index surged more than 8% to a reading of 124. The GPI has remained above the 100-point mark indicating economic optimism all year, but the September reading sets an all-time record for the index, which launched in January 2014.

“Shipments are still below where we want them, but good activity is happening, so the market should pick up for Q4 shipments,” ...

http://www.bloomberg.com/news/articles/2015-09-25/texas-instruments-xilinx-duped-by-russia-export-ring-u-s-says
Chip makers may testify in trial of accused conspirators
U.S. alleges computer chips were provided to Russian military
The unmarked business in an office park on the outskirts of Houston claimed to make traffic lights. In reality, it was a spy-run outfit that shipped sensitive technology to the Russian military, according to the U.S.

By claiming to be a manufacturer, Arc Electronics Inc. duped companies including Texas Instruments Inc., Xilinx ...

http://smt.iconnect007.com/index.php/article/92866/dods-first-pass-at-grey-market-regulation/92869/?skin=smt

More Vendors, More Problems

The government acquisition process is a complex one. It is not set up to be nimble, nor is it structured to keep pace with the commercial sector, of which the majority of grey market material is supplied by. The U.S. government gets a great deal of heat for many things, including fostering the introduction of counterfeit components into the supply chain, but when you really study how their procurement process is setup, when you break ...

http://globalpurchasing.com/gpi-inches-july?NL=ESB-01&Issue=ESB-01_20150805_ESB-01_742&sfvc4enews=42&cl=article_1&utm_rid=CPG05000002126099&utm_campaign=2957&utm_medium=email&elq2=84b902ef7b79467db6055afa549b83ae

Global Purchasing Index remains in positive territory, but rises only slightly following a jump in June.

Global Purchasing’s monthly business optimism report registered 116.3 in July, an increase of 0.3% over June and an indication that business conditions remain stable for most buyers of electronic components.

The monthly Global Purchasing Index measures optimism among buyers at original equipment manufacturing (OEM), contract manufacturing (CM), and electronics manufacturing services providers (EMS). A reading above 100 indicates optimism, and a reading below 100 ...