I know a guy who used to work for TI who talked about the Chinese knocking off chips, right down to purposely-introduced defects added specifically to detect such counterfeiting. Problem was, knowing that it happened didn't do much good. Ended up moving production of some stuff to the Philippines because there was literally no recourse.
I remember when I worked in a trade company, one of most unusual things to sell was a maskset from a company that went bust.
Apparently a very common practice in China, companies were selling masksets of their discontinued ICs to companies lower on the ladder for them to manufacture relabelled/repackaged chips.
