Fake Intel processors generate massive controversy

Chips faked, journos attacked.

A shipment of CPUs from distributor D&H to retailer Newegg in America was discovered to contain 300 counterfeit Intel Core i7 920 chips.

As first seen by HardOCP forum user Nix, and only hours later seen again by Overclockers forum user dreadrok, these counterfeit chips show a level of effort that suggests this isn't a small-scale problem.

Every component of standard Intel retail packaging is copied, though the box features typos, fake holographic stickers and a faked factory seal.

Inside the box resides a poor quality plastic packaging, a blank booklet of pages (with only one staple), a fake heatsink that appears to be a plaster mould with sticker on top, and a 'processor' that is manufactured entirely from aluminium.

Courtesy of dreadrok

In fact, the chip itself has laser etching on it in a manner that is similar to Intel's retail products - and it is clear from the pictures uploaded by those affected that these are not from Intel.

First reported by HardOCP with reposts of the images, they've obtained a statement from Intel about the faked chips by Intel spokesman Dan Snyder:

Intel has been made aware of the potential for counterfeit i7 920 packages in the marketplace and is working to how many and/or where they are being sold. The examples we have seen are not Intel products but are counterfeits. Buyers should contact their place of purchase for a replacement and/or should contact their local law enforcement agency if the place of purchase refuses to help.

Though the official word they received from Newegg is in diametric opposition to this statement:

After investigating the issue internally it appears one of our long term partners mistakenly shipped a small number of demo boxes instead of functional units.

The fallout from this has caused a cease and desist letter to be sent to HardOCP journalists from distributor D&H, outlining complaints over libel and malicious statements and threatening to pursue legal action if the content was not removed by March 6.

As of today the content is still available, though the wording of the letter was quite fierce:

IMMEDIATELY (i) cease and desist posting such defamatory material about D&H.; (ii) remove the contact and any reference to D&H from your website; and, (iii) post an immediate retraction and apology which shall remain posted for not less than thirty days.

If you fail to do so by 5 p.m., pst., on March 6, 2010, D&H will pursue all of its rights and remedies, including, without limitation, an action for libel, will seek full recovery for the damages caused by your untrue statements including punitive damages, as well as seek injunctive relief.

We can't actually see where HardOCP has done anything but repost comments from sources verbatim and get the news to the community at large (you know, sort of what a journalist is supposed to do), but we assume that the issue is being heatedly discussed behind closed doors.

Courtesy of HardOCP

Thankfully for those affected by the faked chips, Newegg is replacing those as a top priority. Have an opinion on faked chips, or the issue as a whole? We'd be interested in hearing it below.