Yep. This is very common and is called binning:
Re:Shrinkflation, SanDisk Style
by Dylan16807 on Wednesday February 15, 2023 @12:16PM
(#34807139)
But they were in the same bin.
Re:Shrinkflation, SanDisk Style
by danielheath on Wednesday February 15, 2023 @10:14PM
(#34814531)
Right, but all that means is they met the minimum standards for that bin and didn’t meet the minimum standards for the next one.
This is also how phone screens are made (a huge panel is produced, then lit up; some pixels are stuck, but phone-screen-sized pieces can be cut out of it where there's enough good pixels).
This is also how most CPUs and GPU models are made - test each sub-component, disable the parts that fail testing, then price the result according to how much of it works.