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1-Source, ChipChecker Offer Anti-Counterfeit Service

(May 13, 2008) HONG KONG — Under a mutual interest in mitigating the growing problem of counterfeit and defective parts, 1-Source Electronic Components Inc. and ChipChecker Ltd. teamed up to provide a suite of material management services for wholesale buyers of electronic components, the L-15 inspection and third-party testing service.

L-15 services include quality inspection of both products and suppliers in Hong Kong, mainland China, and North America. One of the services ChipChecker offers is investigation of the supply and suppliers within the Asian marketplace. The companies verify that product from Asia or North America comes from suppliers that have a physical presence, a warehouse, and proper handling practices. The L-15 comprises 15-step inspection and functional testing services, and are led by Jon Mayfield, ChipChecker operating director.

The companies are offering these services to distributors and brokers as well as to buyers of electronic components, in addition to related services such as sourcing, procurement, logistics, and fulfillment. The two companies are leveraging their combined global footprint, experience, and track records to deliver the services to existing OEM, contract manufacturer (CM), and government/government contractor customers. ChipChecker currently is engaging with large customers on a contractual basis to provide services targeted at improving the hard-to-find, long-lead-time product, and ensuring the integrity of supply and supplier.

"The problem of counterfeit and defective components has been a serious and rapidly growing one in both the components distribution and electronics manufacturing industries in recent years," explains Robert Lodato, executive VP of 1-Source. "Off the top of my head, I can think of at least $50,000 that our company alone has lost just on bad parts we received from disreputable companies. And that doesn't include shipping parts back and forth to Asia that we were actually able to return, and sales and customers we lost due to the delay these issues caused."

Lodato cites a shipment of chips supposedly made by Philips, with perfect packaging that looked original. The packages were counterfeits with non-functioning cores. From that experience, 1-Source learned to develop ways to protect itself. "Today it's reached the point at which many distributors and especially manufacturers are afraid to buy parts from China," Lodato asserted. He adds that good product is available from the Asia-Pacific, if buyers know how to ensure they receive quality product.

For more information, visit www.1sourcecomponents.com and www.chipchecker.com.




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