Same as Intel, or any other integrated circuit manufacturer. When silicon is cured, it's on a large wafer, consisting of many separate ic's (cpu's) or (gpu's) in this case. The silicon in the center yields the most perfect (i7's), while the silicon toward the outer edges is of lesser quality. (i3's or celerons). These components are then separated (cut) into according grades of cpu/gpu, and shipped to market branded as different market segments. i7, i5, i3, Pentium, Celeron, atom (which doesn't deserve capitalization) -poke poke. Lol
Similarly, grading can be based on bandwidth. 1.6ghz/2.8ghz.
The chips manufactured from the center of the production silicon are more "pure" with less defects or "culling", the ones on the edges are downgraded market segment products.