AMEYA360:A Refutation of “China’s Underground Market of Chips Draws Desperate Automakers” by Bloomberg 2

　　In China, cars are basically standardized products when they leave the factory. In order to meet the personalized and diversified needs of car owners, there is a huge "car aftermarket", namely 4S stores, maintenance stations, and modification plants, where automobile enthusiasts can modify or add some products into their vehicles. Products in the aftermarket do not have to pass the vehicle regulations. These parts will never change the core electronic components or interfere with the car safety, as they belongs to peripheral products. I did a survey and found that most so-called car chips speculated in Huaqiangbei belong to this category! They do not belong to the ABS, ESP, and other parts asserted by Bloomberg in the article!

　　Introduction to Slkor in Chinese and English

　　III.Inspection of electronic components

　　I, SONG Shiqiang, as a stall economist in Huaqiangbei and the General Manager of Kinghelm and Slkor, explored some rules by using the basic theories of "Kondratieff waves" and "Fiboracci Arc" in Macroeconomics. With due consideration of the effect of the cyclical constraints of the electronic component industry, functions of the electronic component reservoir in sales order configuration, I found out some rules of electronic business in Huaqiangbei. Once I had drunk too much in Huaqiangbei, I spoke the knack out in bragging. 

        A businesswoman heard about my elucidation on the knack and was consequently enlightened. She followed the ways and means proposed in the elucidation in her speculation and made much profit worth several Bentley cars. She even sent a Bentley model to me to express her gratitude. Businesswomen in Huaqiangbei sighed with astonishment that in addition to writing jokes and advertisement, Mr. SONG from Kinghelm also knew a lot about stall business in Huaqiangbei, "How I wish to meet him  before my speculation rather than after that". One day, I was having tea with businesswomen in Huaqiangbei to do a pre-sale roadshow for my new book “Guide to Speculation in Huaqiangbei”. I accidentally saw a boss throwing a package of glittering items into the trash can behind a small counter. I picked the package up because I enjoy learning. I found it was a package of thin objects covered with a thin layer of blue film! Later, I asked experts of the industry and knew that they were wafer scraps with demerits sold to Huaqiangbei at lower prices from wafer fabs. 

          Afterthese wafer scraps are sealed and tested, they become electronic components sold in counters and stalls in Huaqiangbei. If you want to trace the brand, model, or even the production date, you can find a professional testing company for help. If you need a testing authority, the No. 5th Research Institute of the Ministry of Industry and Information Technology (CEPREI) in Guangzhou is recommended. In contrast, White Horse Laboratories is a more convenient choice. Additionally, 360IC also has a lab similar to this. By chance, I found ways and means to test electronic components. For problems arising out of the electronic components, causes of problems should be analyzed. If there are disputes, all responsibilities should be clearly defined, or some information should be traced and confirmed. Then the test and inspection of electronic components will play a role.

　　For example, a testing company has advanced ultrasonic testing equipment capable of doing non-destructive tests widely applied in material test, failure analysis, Research and Development (R&D), Quality Assurance and Reliability (QA/REL) tests. Items can be inspected include electronic components, LEDs, metal substrates, cracks, delamination, cavities and other irregularities. The image contrast can be used to identify the internal impedance anomalies of materials, to determine the shape and size of defects, and to determine the positions of defects. I observed wafer scraps mentioned above with a 1000x magnifying instrument lent from a friend of mine. They were found memory chip made by TSMC with models and capacity specifications clearly visible! Of course, the conventional opening, sol, electrical performance testing, sealing material testing, and sealing process analysis are all available. After this comprehensive test, similar to four ways of diagnosis --looking, listening, inquiring and feeling the pulse practiced by a doctor trained in the traditional Chinese medicine and blood test practiced by a doctor trained in the western medicine, the DNA result reveal the parents of a child clearly!

　　Test results of wafer scraps found in Huaqiangbei

　　What I want to state here under my name SONG Shiqiang from Kinghelm and Slkor is that in procurement of expensive chips especially those for vehicle use from Huaqingbei, the test report from the professional lab is prerequisite for the issuance of a Purchase Order from a customer for both samples and small batches. A buyer with rich procurement experience in Huaqiangbei knows the origin of a chip, the level of processing of a chip and stage of modifying for a chip through visual inspection with his naked eyes. That is why I was shocked by the simplicity involved in buying chips for vehicle use described in the article by Bloomberg easier than blowing a whistle. Too much emphasis on the importance of customer relationship in the article revealed a blurred business image in Huaqiangbei that is far away from real business practice. The prerequisite for business in Huaqiangbei is the stock available and the same stock with authenticity!