The Siemens Market Is Broken: How Refurbished Units, Counterfeits, and Gray Market Goods Are Endangering Your Production

Introduction: A $5.5 Million Warning

In early 2026, Shanghai police dismantled a sophisticated criminal network that had been manufacturing and selling counterfeit Siemens PLC modules. The operation was extensive: criminals purchased used Siemens PLC modules from scrap dealers, dismantled the circuit boards, cleaned them, installed counterfeit housings, printed fake packaging and anti‑counterfeit labels, and sold them as “new” products. The case involved over 4,000 counterfeit PLC modules and more than RMB 40 million (approximately $5.5 million USD) in total value.

This was not an isolated incident. In April 2026, Jiangsu prosecutors concluded a case involving a criminal network that operated across multiple provinces, with Shenzhen as the source and Nantong as the production base. Investigators found that the network had been selling counterfeit Siemens industrial control products totaling more than RMB 8 million (approximately $1.1 million USD) . The case resulted in 12 defendants and one corporate entity receiving criminal sentences.

These are not isolated incidents. They are symptoms of a broken market — a market where refurbished units are sold as new, where counterfeits are indistinguishable to the untrained eye, and where buyers are left holding the bill when production lines stop.

This guide exposes the realities of the Siemens market today: the types of fake products circulating, how to identify them, the risks they pose, and — most importantly — how to protect yourself. At PLC ERA, we believe in transparency. We will tell you exactly what you are buying, every single time.

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Part 1: The Three Faces of Fraud in the Siemens Market

1.1 Refurbished Sold as New

The most common deception — and the hardest to detect — is refurbished units sold as new. These are genuine Siemens products that have been used, removed from service, cleaned, re‑packaged, and resold as “new” or “original packaging.”

How it works:

• Criminals purchase used or end‑of‑life Siemens PLCs, often from scrap dealers or decommissioned factories

• They disassemble the units, clean the circuit boards, and replace worn components with cheaper aftermarket parts

• They install third‑party housings — often thinner, weaker plastic that does not meet Siemens specifications

• They re‑spray the housing, re‑print labels, and re‑package everything in counterfeit packaging with fake anti‑counterfeit stickers

• The final product is sold as “new” — often at a discount that seems too good to pass up

The problem: The core electronic components may be genuine Siemens, so basic functionality tests can pass. But these components may have already exceeded their designed service life. The solder joints may have been thermally stressed. The capacitors may have aged. The unit will fail — it is not a question of if, but when.

1.2 Counterfeits (High‑Fakes)

Counterfeits — often called “high‑fakes” — are products manufactured by third parties that copy Siemens' appearance, packaging, and labels. Unlike refurbished units, counterfeit products contain no genuine Siemens components.

How it works:

• Third‑party manufacturers produce circuit boards that mimic Siemens designs

• They use cheaper, lower‑grade components (inferior capacitors, undersized traces, no surge protection)

• They print counterfeit labels, packaging, and anti‑counterfeit stickers

• The final product looks authentic — until it fails

The giveaway: Counterfeits often cannot be properly identified by Siemens engineering software like TIA Portal or STEP 7. The PLC may reject them as unsupported devices, or they may fail to communicate correctly. Some counterfeits are so poorly made that they contain only a single chip and cannot even display their own brand marking.

The consequences: Counterfeit products have not passed any safety certifications. In high‑temperature, high‑humidity, or high‑EMI industrial environments, they are prone to catastrophic failure — and in some cases, electrical fires. They also carry no manufacturer warranty and no technical support.

1.3 Gray Market and “Channel Clearance” Goods

Gray market goods are genuine Siemens products that have entered the market through unauthorized channels. They may be:

• Overstock from distributors liquidating inventory

• End‑of‑life products from discontinued series (e.g., S7‑300, S7‑400)

• Regional variants imported from markets with different pricing structures

• Factory seconds or customer returns that were never intended for resale

The problem: While the products themselves may be genuine, they come with no warranty, no technical support, and no guarantee of authenticity. Siemens explicitly warns that gray market products may be counterfeit items deceptively marketed as genuine. They also may not comply with local regulatory requirements.

The “too good to be true” trap: In industrial automation procurement, counterfeit and refurbished units are almost always priced significantly below authorized distributor pricing to attract buyers. A price that seems dramatically lower than the market average is almost always a red flag.

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Part 2: How to Spot the Fakes — A Field Guide

2.1 Packaging Inspection

2.2 Physical Appearance

Critical note: As confirmed by Siemens support, all official S7‑1200 analog input contacts must be gold‑plated. If you see silver or tarnished contacts on an analog input module, the unit is not genuine.

2.3 Labels and Serial Numbers

Critical step: Always verify the serial number. Use the Siemens Industry Online Support app (available for iOS and Android) to scan the DataMatrix code on the product or packaging. The app will return the correct MLFB (order number) and product information. You can also manually enter the serial number into the Siemens support portal.

If a seller refuses to share serial numbers before shipping, walk away.

2.4 Price

The golden rule: The industrial automation market is rife with refurbished units, re‑labeled modules, and even high‑quality counterfeits being sold at prices that closely resemble genuine products. A 30‑40% discount from distributor pricing should be a serious red flag.

2.5 Functional Tests

If the unit powers on but cannot be properly configured in Siemens engineering software, or if the software reports an unsupported device, you are almost certainly dealing with a counterfeit.

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Part 3: The Real Costs of Buying Fake

3.1 Production Downtime

A counterfeit or refurbished‑sold‑as‑new PLC may work for days, weeks, or even months. But when it fails — and it will fail — the cost is catastrophic. Unplanned downtime costs manufacturers an average of $260,000 per hour in 2026.

If a counterfeit PLC fails during a critical production run, the cost of the downtime alone can exceed the entire savings from buying the fake product by hundreds or thousands of times.

3.2 Safety Risks

Counterfeit industrial control products have not passed any safety certifications. They have not been tested for:

• Electrical safety (short circuits, overloads, insulation breakdown)

• Fire resistance (flame retardancy of housings and components)

• Electromagnetic compatibility (EMI immunity)

• Environmental resilience (temperature, humidity, vibration)

In high‑EMI environments — factories with welding equipment, large motors, or VFDs — counterfeit modules are prone to catastrophic failure, and in some cases, electrical fires.

3.3 No Warranty, No Support

Counterfeit and refurbished units sold as new carry no manufacturer warranty and no technical support. When the unit fails:

• Siemens will not honor a warranty claim

• Siemens will not provide technical support

• The seller (if you can find them) will almost certainly disappear

You are left with a dead PLC, a stopped production line, and no recourse.

3.4 Legal and Regulatory Consequences

Selling refurbished products as new — particularly with counterfeit labels and packaging — is illegal. In China, offenders can face criminal prosecution under trademark and counterfeiting laws, with sentences ranging from fines to imprisonment.

Buyers are not immune. If a counterfeit PLC causes a safety incident or regulatory violation, the buyer may be held liable for operating non‑compliant equipment.

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Part 4: The PLC ERA Difference — Radical Transparency

At PLC ERA, we operate on a simple principle: Tell the customer exactly what they are buying.

4.1 Genuine New Products

When we sell a product as “new” or “original”, it is exactly that — a genuine, factory‑sealed Siemens product sourced through authorized channels. Every unit comes with:

• Full manufacturer warranty

• Complete traceability

• Authentic packaging and labeling

• Valid serial numbers verifiable with Siemens

4.2 Certified Refurbished Products

We understand that some customers need refurbished products — whether for legacy systems where new units are no longer available, or for budget‑constrained projects where cost is the primary driver.

When we sell refurbished products, we tell you:

• That the unit is refurbished, not new

• What was refurbished (cleaning, component replacement, testing)

• What warranty we provide

• The unit's service history (when known)

We never sell refurbished units as new. We never hide the condition of a product. We respect your right to know what you are buying.

4.3 Our Commitment

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Part 5: How to Protect Yourself

5.1 Buy from Trusted Sources

Siemens explicitly recommends purchasing from authorized distributors to ensure product authenticity. If you are buying from an independent supplier:

• Request batch photos with serial numbers visible

• Verify the serial numbers with Siemens before payment

• Check the supplier's reputation and track record

• Ask for references from other customers

5.2 Inspection Checklist

Before installing any Siemens PLC, perform these checks:

Packaging Check:

• □ 

  Anti‑tamper seals intact

• □ 

  Packaging quality consistent with genuine Siemens products

• □ 

  Siemens logo has raised texture

Physical Inspection:

• □ 

  Housing color is consistent; no pungent plastic smell

• □ 

  Text is laser‑etched or precisely printed, not screen‑printed

• □ 

  Seams are tight and even (gap < 0.1 mm)

• □ 

  Gold‑plated contacts on analog input modules

Verification:

• □ 

  Serial number verifies with Siemens (via SIOS app or portal)

• □ 

  QR / DataMatrix code scans to valid product information

• □ 

  Unit is recognized by TIA Portal / STEP 7

• □ 

  Firmware version matches official releases

5.3 Know Your Rights

If you discover you have purchased a counterfeit or refurbished unit sold as new:

• Document everything (photos, receipts, communications)

• Report the seller to the platform (if purchased online)

• Contact Siemens to report the counterfeit

• Consider legal action — counterfeit sales are illegal and subject to prosecution

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Conclusion: Transparency Is Not Optional

The Siemens market is broken. Refurbished units are sold as new. Counterfeits are flooding supply chains. Gray market goods offer no warranty and no support. Engineers and procurement professionals are left to navigate a minefield of deception.

At PLC ERA, we believe the solution is simple: transparency.

We will tell you exactly what you are buying. New is new. Refurbished is refurbished. We never hide the condition of a product because we believe in respecting your right to know.

If you are looking for genuine Siemens PLCs, HMIs, drives, or sensors — new or refurbished — we will give you the straight story. No deception. No surprises. Just honest products from people who understand the cost of getting it wrong.

Visit plcera.com to explore our catalog, request a quote, or speak with our team. We will tell you exactly what you are buying — because that is how it should be.

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References and Further Reading

1. How to Spot Counterfeit Automation Parts (and Avoid Them). Industrial Automation, 2025.

2. Siemens PLC Market Guide: Identifying Genuine Products and Avoiding Counterfeits. Industrial Automation News, 2026.

3. Jiangsu Procuratorate Case Report. Jiangsu Provincial People's Procuratorate, 2026.

4. Nantong Intellectual Property Protection Cases. Nantong Municipal Government, 2026.

5. Siemens AG. Official Market: Safe Purchase of Siemens Products.

6. Siemens AG. Is Your Factory Operating in a Gray Area?

7. Siemens S7-1200 Analog Input Contact Specification. Siemens Support, 2026.

8. Industrial Procurement Anti-Counterfeit Guide. Automation World, 2026.

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Article Tags

#Siemens #PLC #Counterfeit #Refurbished #GrayMarket #IndustrialAutomation #SupplyChainIntegrity #PLCERA #Transparency #BuyerBeware #GenuineProducts