I did that for a living, till a Japanese company bought our factory and moved it to Southeast Asia.
When i was at Intel in Malaysia, they had a bin they threw defective chips in to grind them up. This was to prevent theft. Yet they still had high theft rates. I had to go through airport security systems long before airports had them and they searched all my belongings to ensure I didn't bring anything in or out.
The funny part was how the Chinese re-marked AMD devices with Intel part numbers so they could make more money selling fake devices. Intel would tons of failed devices only to discover the devices were made by somebody else.
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