The stolen part I get, but did it used to be easier to counterfeit chips? There's a lot that goes into making something that looks like a PIII, and even then, I assume Intel had state-of-the-art fabs, so I'm surprised this was a concern.
The hardware scams I've heard of stamping better specs on something, for hard drives, a firmware hack that makes it appear to be higher capacity, and unauthorized hardware made in off-hours on the same production line.