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Firms Get Away with Selling Untested DRAM

peppytech75 writes "Melanie Hollands in IT Manager's Journal reports that 'In recent months, some Asian DRAM memory manufacturers have been getting away with selling untested ("UTT") DRAMs. Disturbingly, the practice seems to be getting traction at the lower portion of the module business. This is being done mostly by Taiwanese DRAM makers, who are undercutting the tier-1 guys by selling untested and unmarked parts.' What's the solution here? Or is there an actual solution to what amounts to pirate companies issuing counterfeit parts?" (IT Manager's Journal, like Slashdot, is part of OSTG.)

36 of 344 comments (clear)

  1. unmarked and untested == pirated? by qwertphobia · · Score: 5, Insightful

    I don't follow this analogy...

    --
    Never ask for directions from a two-headed tourist! -Big Bird
    1. Re:unmarked and untested == pirated? by Anonymous Coward · · Score: 1, Insightful

      I don't follow this analogy...

      If you sold as-is, no. If you printed a reputable manufacturer's name on the chip and sold it as legit, maybe.

    2. Re:unmarked and untested == pirated? by akadruid · · Score: 5, Insightful

      Piracy = buzzword = whatever you want it to mean.

      My neighbour pirated my parking space. That guy pirated my seat on the train. All it means is 'they've got my toys, mummy'.

      In the UK, we have big posters at cinemas which declare 'Piracy funds Terrorism'. Which is beautiful, since its 100% true, and depends completely on people misunderstanding it.

      --
      "Those who cast the votes decide nothing; those who count the votes decide everything." (attrib. Joseph Stalin)
    3. Re:unmarked and untested == pirated? by FidelCatsro · · Score: 4, Insightful
      I was about to say the exact same thing , This is capitalism in action .

      If these chips sell to people under no false pretense about what they are and there is a market for them then what exactly are they doing wrong .
      If they are mislabeling them then yes that is very much illegal , but mostly they make no claim to this , If you want to risk buying these chips then fair enough .
      They are mostly not pirates though and labeling them that because they are undercutting other firms sounds like a dubious marketing ploy.
      The major risk as I see it is a batch of modules gets into a major user (think IBM, H-P, and/or Dell) and fails (probably in Asia). The user goes publicly ballistic over the combination of faulty material and the supplier's inability to control the quality of its material. The press runs with it and the unlucky DRAM supplier's stock gets hammered. Some time afterward, it emerges that all the DRAM suppliers have this risk and then they all go down.
      If this hapens then its the fault of the companys such as IBM ,HP or dell for not testing these products before shipping , i very much doubt that IBM would fail to run a memory test before shipping a server though.

      If as she says they are being sold as tested moduals then this is illegal and the practice can be stoped fairly easily and is no threat to the Semi conductor bussiness .

      --
      The only things certain in war are Propaganda and Death. You can never be sure which is which though
    4. Re:unmarked and untested == pirated? by orasio · · Score: 2, Insightful

      You don't understand, ok.

      Pirated = doesn't fit in my current bussiness model.

      You want your music in MP3?? PIRATE!!
      You like your TIVO?? PIRATE!!!
      You want to sell lower quality products at a lower price?? PIRATE!!

      You see, it's the commerce equivalent to "terrorist". One size fits all.

  2. We've been burned by eyegor · · Score: 2, Insightful

    We've been burned several times recently buying lower tier RAM. Out of a lot of 20 pieces, nearly a third was DOA or died horrible with a month of installation (and yes, I know how to install RAM).

    --

    Don't anthropomorphize computers, they don't like it.
  3. Why do people buy cheap ram? by flibble-san · · Score: 5, Insightful

    These days I don't reccomend anyone to buy cheap no-name unbranded RAM. Of all the PC hardware problems I've had over the years, about 80% are down to bad faulty generic RAM. I know only use Crucial or Kingston. They check the RAM, I know the RAM I buy is going to be working. RAM is one of the most important parts of any computer system. Is it really worth saving the £3-£5 by getting cheap unbranded RAM? As the saying goes, you get what you paid for.

    --
    My other sig is crap too
    1. Re:Why do people buy cheap ram? by bogado · · Score: 2, Insightful

      No one said they do not exchange or refund you, they are simply stating that they are making the users the tester.

      1. skip the test phase
      2. Let the user complain and exchange faulty item by a wroking one.
      3. profit... :-)

      The falty ram would get to the trash anyway, in this way they are skiping a pricy test phase and given the burden (and anoyance) to the user and who knows the user may even not notice the problem until is too late to return the bad memory... :-P

      --
      []'s Victor Bogado da Silva Lins

      ^[:wq

    2. Re:Why do people buy cheap ram? by Brain_Recall · · Score: 2, Insightful

      Same here.
      Although, I find that even more problems come from bad power supplies, which can result in failing RAM. For these two components (and more or less the motherboard), buying cheap isn't the way to go. You'll more than likely end up buying them again when they decided to go.

      (Just recently I had a friends power supply start to give 13+V on the 12V rail. It killed an older hard drive, and he's now forced to buy a newer, top quality PS.)

  4. You get what you pay for. by Anonymous Coward · · Score: 4, Insightful

    Quality really seems to be a thing of the past. Cheaper != Better.

  5. Re:For me, great. by FireFury03 · · Score: 4, Insightful

    I definitely prefer to go to shop, get the die, plug it in, run a test program for a few hours and have it replaced if I find any errors, than to pay some 80% extra for a sticker saying that some malaysian kid did it for me.

    Yes, because waiting for my mail order RAM to turn up, finding it's buggered and then having to spend a month trying to convince the supplier to get their finger out doing their slow-as-treacle RMA procedure is such a good use of my time... (Not to mention the very real chanced that the replacement RAM will be just as screwed)

  6. When enough sellers by Dorsai65 · · Score: 3, Insightful

    lose sales (and their reputations) because of this, the problem will die out.

    --
    --- Asking inconvenient questions for over 30 years...
  7. Freemarket by XorNand · · Score: 4, Insightful
    What's the solution here?
    Huh? The freemarket seems like an ideal solution to me. Why do we need an external solution that entails fining/regulating them? If a company makes inferior product, odds are that they'll lose a large percentage of their customers. They'll be forced to either change their practices or go out of business.
    --
    Entrepreneur : (noun), French for "unemployed"
    1. Re:Freemarket by Brandybuck · · Score: 2, Insightful

      ...therefore a perfect free market is just as utopian...

      Free marketers and libertarians have a saying: "utopia is not an option." Rejecting the free market because it isn't perfect only makes sense if you have a perfect replacement for it. But there is no perfect replacement, especially not meddling dogoodism.

      People don't advocate free markets because they expect utoptia, they advocate free markets because they are *free*. Freedom itself is the goal. Not having some whinyass bureacrat telling me what DRAM chips I can or cannot buy is the goal.

      --
      Don't blame me, I didn't vote for either of them!
  8. Whatever. by cnelzie · · Score: 2, Insightful

    First off, the difference isn't 80%.

    Secondly, how much is your time really worth?

    For me, (and I live within 5 miles of multiple PC stores), buying RAM, taking it home, installing it, finding it to be bad (After running a 45 minute or longer Memtest86) and then returning it to the store would more then cost me more then my average hourly rate at the office.

    I would rather pay the few extra dollars, get home and have an extremely low chance of installing bad RAM into my PC, then have the possibility of spending the whole day driving back and forth to the PC store to eventually find a good working stick of RAM.

    --
    If you ignore the other uses of a tool, does that make the tool less useful, or you less useful?
    1. Re:Whatever. by gowen · · Score: 3, Insightful
      (After running a 45 minute or longer Memtest86
      yeah, but you don't have to sit and watch Memtest you know? Find something else to fill that time : Mow the lawn, tidy the house, hang some wallpaper, have sex, masturbate frantically ... do whatever you'd normally do on a lazy Sunday afternoon, and you'll find you won't have wasted anything like as much RIAA-style "virtual money".
      --
      Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  9. Nothing New. by necrodeep · · Score: 5, Insightful

    The old saying stands true here... You get what you pay for. If you are going to only pay pennies on the dollar for Memory. Well you should expect a high number of failures.

    If your system memory is mission critical, you probably are going to buy top-shelf rather than bargain-basement, aren't you?

  10. Re:For me, great. by Anonymous Coward · · Score: 1, Insightful

    I test the RAM even though it's supposed to be already tested by the company - I can't afford to lose the time lost if it fails while in production.

  11. Stupid business practice... or not? by n54 · · Score: 2, Insightful

    Unless these companies are specifically targeting anybody willing to do the testing themselves & go through any replacement hassle I don't see what they're aiming at... that nobody will notice?

    How many end users would be remotely interested in doing this stuff? And they say they're going to increase this practise and that others might do the same?

    I would imagine factory testing isn't just to check the chips themselves but also to check up on the manufacturing process itself, how low quality are they aiming at? If they're hell bent on producing worthless trinkets they might as well make glass beads.

    --
    this comment is provided "as is" and without any express or implied legibility or congruity [...]
  12. Re:For me, great. by Lonewolf666 · · Score: 2, Insightful

    Then you still might end up with some marginal RAM that happens to work fine during your test, but fails under slightly less favorable conditions. Like the next hot summer (the performance of digital circuitry degrades with high temperatures).

    When the german C't magazine did a RAM test a few years ago, they worked with a company that specializes in such tests. The used test environment can reportedly (IIRC) simulate borderline conditions and test the module under these. It does also cost a lot more than a PC.

    --
    C - the footgun of programming languages
  13. Analogy for the world by jason.hall · · Score: 4, Insightful

    I believe we're slowly becoming a nation (world?) completely driven by prices at the expense of quality. I continuous hear things like "Why did he buy a Lexus for $50,000 when a new Hyundai is $15,000?" "This CD-R is $.10 each, this one is $.09. Why would anyone buy the $0.10 one?" People don't always get there's more to a product's specs than the price.

    1. Re:Analogy for the world by drinkypoo · · Score: 4, Insightful

      The hyundai might be more reliable, actually. Lexus/Toyota has done some really stupid things. A car that costs $45,000 should not have ball joints that must be replaced with the entire upper suspension arm... where did all that money go, anyway? We're mostly slaves to advertising. Granted many people are free from that kind of bullshit, but most humans are susceptible.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  14. Simple Solution by mrRay720 · · Score: 5, Insightful

    Really, it's easy. If they're selling untested, unmarked parts and this is a problem, just don't buy untested, unmarked parts! Let the market sort itself out. If the market decides that the cost saving here isn't worth it, the demand for slightly cheaper untested parts will surely dry up, and the manufacturers will catch on and stop trying to sell them.

    If there are enough people out there though who DO want the cost saving brought on by buying untested crap - let them! Nobody says you have to buy cheap crap if it's on the shelf. You get what you pay for. You want good quality - pay good money. You want bad quality - pay peanuts.

    Basic Economics, really. And it's not as if the likes of Crucial, Corsair, Kingston etc. are doing it.

    Why is this even an issue? I think it's commonly accepted wisdom EVERYWHERE that going for the lowest bidder will give you cheap rubbish. Computer components are no different.

  15. Not necesarily a problem by Anonymous Coward · · Score: 4, Insightful

    This isn't necessarily a problem. If the yields on the DRAM chips are high enough, then it can make sense to NOT test the individual chips and instead wait to do the testing at the module (DIMM) level. If the chip yields are perhaps 95%, then the chance that a DIMM will be good is 0.95^8, or 66%. That may be high enough to make it worth while to avoid the cost of the chip testing.

    Now, if the chips are not tested AND the DIMMs are not tested, well that's another story...

  16. Re:If you're stuck with one of these... by NetNifty · · Score: 2, Insightful

    Probably just lucky, Windows hitting different areas of memory to RH etc, as I've heard the reverse happen too (RAM failing on Windows but being fine on RH or other distros).

  17. Re:For me, great. by Anonymous Coward · · Score: 2, Insightful

    If people are savvy enough to build their own systems, they are certainly savvy enough to test the memory themselves, so I see no problem here. Of course the "split" may increase the tested RAM prices a bit (smaller market share), but I don't think it would be a significant rise. Certainly not bigger than introduction of "lifetime warranty" dies besides the standard warranty ones.

    If you save $10, remember the chance of getting the faulty RAM is quite low. You -may- spend more on shipping (if you didn't buy from a local reseller, which would be a wise move in the first place), but the chances are far better that you just won't. Consider this in this way: A gamble where you can -lose- the shipping fee (of, say, $30) in one of, 100 cases, and win $10 discount in the remaining 99 cases. The chances are quite favourable.

  18. Re:If you're stuck with one of these... by Greyfox · · Score: 2, Insightful
    We used to have the same problem with OS/2 versus Windows back in the OS/2 days and all we could get was speculation out of the developers. I recently had a problem with a (linux) machine at work where it just wouldn't stay up for more than about 4 hours before it locked up. Knowing that this wasn't natural I tested a bunch of stuff and finally ended up downloading memtest86, which quickly diagnosted the bad RAM.

    Perhaps it's just a perception thing -- if Windows had been randomly crashing like that I would have been somewhat more inclined to just write it off as something Windows does. From what the previous user of the machine told me, Windows XP had similar problems on that particular system.

    Linux had a badram patch for a while that would allow you to map and work around bad memory, but I don't know if anyone's been keeping it up to date.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  19. A smear campaign? Who pays Mellanie Hollands? by Anonymous Coward · · Score: 1, Insightful

    What I wanna know is: is someone paying that analyst? Isn't it obvious that this _could_ be a PR smear campaign? She's heard "rumours", but she doesn't cite one hard _fact_, it's all speculation...or a smear campaign (most likely).
    C'mon guys, grow up. Stop being gullible.

  20. Re:If you're stuck with one of these... by mattyrobinson69 · · Score: 2, Insightful

    i had a dodgy motherboard (the RAM slots were dodgy). Linux installed but was a bit crashy, Windows wouldn't complete the install.

    Its because Windows and Linux tickle the RAM in different ways.

  21. And this is the "solution" to this whole issue by blueZ3 · · Score: 2, Insightful

    The invisible hand will "correct" for this. If places like Frys, BestBuy, etc. buy this untested RAM and get a lot of returns, that costs them money and you can bet that next time around they won't buy from these manufacturers. When that happens enough times, these guys will either start testing RAM or go out of business.

    It's a pain for the consumer (to return bad RAM... I've had to do this often enough that I stopped buying RAM from Frys) but the problem will eventually be solved by "evolution" -- companies selling product that can't compete change or die.

    --
    Interested in a Flash-based MAME front end? Visit mame.danzbb.com
  22. Not quite so by Moraelin · · Score: 2, Insightful

    Just FYI, _all_ "Made By ATI" video cards are actually made by Sapphire. So you're saying... what? That ATI's own preferred manufacturer is not high end enough for you? :)

    Have you actually checked that Sapphire uses worse RAM than ASUS? No offense, but somehow I doubt that.

    Basically there's a helluva lot of difference between actually having a clue, and just being a slave to brand names.

    Sometimes big brand names are actually _worse_ than some of the lower end competitors. (E.g., for the longest time Sony had a tradition of picking the cheapest TFT panels made by others, claiming it has _half_ the latency value that the panel's manufacturer claimed, and selling that shit for twice the price of better products.) In a lot of the big name cases you don't pay extra for quality, you just pay for having the brand name slapped on a piece of shit.

    Sometimes the big name stuff is the exact same stuff that the smaller manufacturers sell. E.g., ATI cards are made by Sapphire. E.g., IBM monitors (or at least a lot of them) are made by BenQ. Yes, the el-cheapo monitor company. Etc.

    So, you know, just buying the most expensive version isn't always the solution. In fact, it's usually a very bad solution.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  23. Scary Stuff! by blueZhift · · Score: 1, Insightful

    Call me a geek, but this is the scariest thing I've read all day! Sooner or later these cheap untested and mismarked components are going to make it into crucial safety or health systems and a lot of people are going to die who didn't have to.

    This is just another example of sacrificing quality and ultimately safety in the name of a few more dollars (or a lot more dollars if you're really dirty and unethical). Over the last few years, I've been paying more for strong brands I can trust, but with so much counterfeiting going on now and the ensuing price pressure driven corner cutting, I wonder how long top tier brands will retain the quality that many of us now depend on?

  24. Re:For me, great. by FireFury03 · · Score: 2, Insightful

    That is only a problem if you insist on using mail-order shops.

    I think the only PC shop aroung here is PC World. Lets see, half a gig of Corsair PC2700 memory is listed at 71.96ukp in PC World. Or I can mail order it from dabs.com for 39.18ukp. And it's not as if I have a lot of choice from PC World - they don't even do 1 gig or 2 gig DIMMs. Tell me again why buying from the local shop is better value than mail ordering?

  25. Learning the hard way by Tassach · · Score: 2, Insightful
    Todays lesson is that cheap parts are inexpensive because they are crap quality.

    If you want it to work right, buy parts from a tier-1 vendor from a reputable reseller. Buying brand-x crap might be cheaper today, but it's more expensive in the long run as you'll have to replace it sooner, and waste more of your time tracking down wierd errors caused by flakey hardware.

    I hope the lesson wasn't too expensive for you. Next time, shell out a few extra bucks and get Crucial or Kingston RAM.

    --
    Why is it that the proponents of "one nation under God" are so eager to get rid of "liberty and justice for all"?
  26. Re:tip of iceberg by amerinese · · Score: 1, Insightful
    You racist bastard. German life expectancy at birth: 78.54. Taiwanese life expectancy at birth: 77.06. (cia.gov's world factbook). In 1940 Germany was blowing up and getting blown up like crazy. The instability and arbitrary nature of life during World War II led to Post-Modernism and meaninglessness. What part about that do you think is a causal factor in wanting to work hard and plan for the next 100 years? By the way, Taiwanese in 1940 probably lived in cement houses (earthquakes), and if by "sheds and bamboo houses" you mean one of the greatest economic miracles of the last 50 years, then I would ask you even more why you think they are any less "hardcore" than Germans.

    Let's talk about the article. First of all, she cites all Asians, but then says mostly Taiwanese manufacturers. Then she says mostly Taiwanese manufacturers and then only cites a single manufacturer for doing it in low quantities with a rumor that they might increase production. She cites not a single source, anonymous or otherwise, and reports from New York, and she even seems to confuse China with Taiwan at one point in the article (Taiwanese are Chinese only in the sense that Australians are Anglo but with immigration that's not really accurate anyways). What kind of news reporting is this? If anything, I would say that she's just starting a random rumor that's a malicious attack on lower-cost, lower-priced Taiwanese DRAM manufacturers.

    All this is not to say that it is not a characteristic of many manufacturers in Taiwan of being the low-cost provider. Much of that is moving to China these days, but that's been their specialty for a long time. Looking at a big market, figuring out how to produce at really low cost, and out producing everyone. Basically the Dell mentality. These days, Taiwan has up the food chain somewhat to design and precision manufacturing etc, but anyways, the point is, this article is crap and there's good reason to be suspect of it.

  27. Re:Big Deal... by merreborn · · Score: 2, Insightful

    That's only if you don't count the cost of the ensuing loss of consumer confidence.

    Something bad management frequently neglects.