COUNTERFEIT NEC SEMICONDUCTORS DISCOVERED IN U.S. AND SOUTHEAST ASIA

Illegal Parts Identified By Markings

Tokyo, Japan and Mountain View, CA (Aug 14, 1995)

NEC Electronics Inc. today announced that counterfeit semiconductors have
been discovered in the United States and Southeast Asia. The parts, all
memory products, are illegally labeled with NEC's name and can be quickly
identified as counterfeit by markings on the chip package.The parts are
all Dynamic Random Access Memory (DRAMs) mounted on Single In-Line Memory
Modules (SIMMs).

Customers at the highest risk of having counterfeit parts are those who
have purchased them through unauthorized distribution channels. The
counterfeit memory parts are marked with ink, which is erasable. Authentic
parts from NEC are marked by an expensive laser process, which is
unerasable.

"The products we have identified as counterfeit may not be fully-functional
memory products," said John Marck, vice president and general manager of
the memory business unit for NEC Electronics. "Customers who purchase from
our authorized channels will minimize their risk of being affected by this
illegal practice. "

To date, the only parts confirmed in the U.S. as being counterfeit are
1-megabit DRAMs mounted on SIMMs. However, there is a possibility of other
counterfeit DRAM densities being sold in the U.S. as well, though there is
no evidence of this to date.

Since these products are offered via unauthorized distribution channels,
the company will not offer customers rebates or refunds on products that
are identified as counterfeit. Customers who suspect they may have
counterfeit products should contact their local NEC representative for
further information.

Memory Products

Memory products identified in this scheme include only Dynamic Random
Access Memory (DRAM). These parts, which store information, are used in a
wide variety of products, including workstations, personal computers and
video games. Currently, the semiconductor market is experiencing a severe
shortage of DRAMs, due to high demand. Many manufacturers are on
allocation, meaning each customer is offered a set number of parts per
month. NEC is currently the second-largest producer of semiconductor
products in the world.

NEC Electronics, Inc.
475 Ellis Street
P.O. Box 7241
Mountain View, CA 94039-7241
Phone: 214-751-7335
 
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