Recyling towns in China, a big source of counterfeit components

Thomas Sharpe, vice president of SMT Corporation, recently testified before the Senate Committee on Arm Services, and described how counterfeit electronic components have entered the global supply chain. He went on to describe what he was told and witnessed when he visited the market places districts in the city of Shenzden and Shantou in China. He was told that local brokers and manufacturers purposely buy counterfeits for a 70% savings off authentic component prices – fully aware that up to 15% of the component may not function at all. In Shantou he witnessed used electronic components being washed in a river and dried on the riverbank. His testimony can be found here .