JAN 1—TAIPEI–An ongoing analog chip shortage and strong demand before the Chinese New Year holidays have led to more fake analog chips showing up in China, according to sources with Taiwan-based analog IC design companies.

According to sources, the fake chips designed by small Chinese IC design companies and manufactured at 4- and 6-inch fabs in China are passed off as power management (PWM) ICs and metal-oxide semiconductor field effect transistors (MOSFETs) made by international or Taiwanese companies for use in consumer electronics.
The counterfeit chips are priced 10-20 percent lower than their genuine counterparts, sources said.

The fake chips reportedly have wrecked some Chinese-made consumer electronics products. Some Taiwan-based IC design companies have been wrongfully accused by the Chinese consumer electronics makers and plan to take legal actions against the Chinese counterfeiters, sources said.

Concerns about safeguarding their intellectual property (IP) has been the major concern for companies considering outsourcing production to the Chinese foundries, sources said.