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Weapon modifications available as rare drops from destroyed ships, as mission rewards and in some lockboxes.

Detailed description and list of available efffects available on Weapon mods (4.0) page.

Mod crafting produces a random mod of the same grade with random stats.

ComponentQuantity
Low-grade Weapon Mod
Low-grade Weapon Modification Part5
Weapon Interface Chips1
Medium-grade Weapon Mod
Medium-grade Weapon Modification Part5
Weapon Interface Chips1
Metal Alloys1
High-grade Weapon Mod
High-grade Weapon Modification Part5
Weapon Interface Chips1
Metal Alloys2
Xenon Components1

 

See this thread for the ongoing (as of 10/12/2015) discussion with the Dev j.harshaw responsible for balancing.