Hold on Reelya, do you mean that they reuse the chips that work or somewhat work on the 1070 Ti, or that they reuse the chips that don't work on the 1070 Ti?
Let me explain the history here.
Silicon wafers have defects on them. Any circuitry that's printed where the defect is will be shit basically. So, you want the things you're printing on the silicon to be individually small. If your chip was the size of the entire wafer then if there was even one flaw in the silicon, the entire wafer would need to be thrown away. So, one of the benefits of shrinking dies is that you waste less % of the silicon if there are flaws. It's as if you're printing something on paper, and if there's a hole in the paper you need to throw that sheet out, but you shrink your type so that each document takes up 1/4 of the page, then you only need to throw out the 1/4 of the page with the hole in it.
This means less overall wastage, since you're only throwing out the bit of the silicon where the defect is, not the whole sheet. However, small things lack the economy of scale. Imagine if they printed every single GPU core as it's own chip, then had 2560 individual chips in the video card? So, they want to package many things on an individual chip because that's good for economies of scale (less chips per card) but it's bad because you'll end up with more dead chips if you do that due to pre-existing defects in the silicon per area.
So, instead what they do is package many components on the same die, but they do it in a way that's modular, so you can test
how much of each chip is usable, then you grade them based on that. EDIT: looks like all the GPUs are actually in one package, but they're modular down to 128 so they can turn that many cores off and sell it as a cheaper card. Note that the 1070 Ti came out the year after the 1080, and has 128 less cores (2560 down to 2432), while the 1070 care out a year after the 980, and also has 128 less cores (2048 down to 1920). So this suggests the 1070 line "
gaming perfected" is in fact a line of cards designed to soak up all the reject chips from their flagship line.