Newegg drops supplier over fake Intel chips

The online PC and components retailer Newegg has terminated its relationship with a supplier that provided it with counterfeit Intel processors.

The supplier, Ipex, originally told Newegg that it had accidentally sent the retailer "demo units". However, Newegg said late on Monday that it had discovered the Core i7-920 CPUs were in fact counterfeit, and it was ending its relationship with Ipex.

"We have already sent out a number of replacement units and are doing everything in our power to resolve the matter promptly and with the least amount of inconvenience to our customers," Newegg said. "We take matters like this extremely seriously, and are working in close cooperation with Intel and the appropriate law enforcement authorities to thoroughly investigate this incident."

The counterfeits came to light at the start of March, when a Newegg customer reported receiving a fake CPU and a plastic mold of the heat sink and fan with a sticker on it. Intel subsequently said it was investigating the case.

On Tuesday, the chipmaker said it was getting samples to inspect, but added that "everything in the package appears fake".

"Some of the photos of the processor look like it is a casting and not even a real processor of any kind," Intel said. "These are NOT Intel samples or demo units as some press outlets have speculated."