Messrs. Brian Grow, Chi-Chu Tschang, Cliff Edwards and Brian Burnsed wrote the BusinessWeek article 'Dangerous Fakes' about old commercially grade microchips that are salvaged from discarded circuit boards and sold as military grade microships.
They reported from Guiyu, Guangdong province, China:
"Old chips are burned from circuit boards, workers wash them in the local river and sort them with brooms on the river bank, before they are carted off to shops and local markets." Some even end up in F-15's, property of the Pentagon.
Read the BusinessWeek article here and do not forget to watch the online video there.