My set hasn't been used in a tourney, but I've used the higher denoms (5k/25k/100k) about 5 times playing Life with the kids (so same few chips each time, and although they don't shuffle, they can still be pretty rough on them. )- no flaking problems.
Then again, I used my Pharaohs CC set quite a bit way back when, and didn't have anything like that with those either.
W/o seeing pics, I'm honestly not exactly sure what you mean by flaking. Early use always left a slight amount of small chunks of clay on the felt. Tiny bits. Could really only notice it from the purples and greens. I just always figured it was edges breaking off and considered it normal. Still do. Recently upgraded my cash set and the same thing happened upon first use with the new chips.
new chips having chunks breaking off isnt normal (Just to clarify its an opinion of what is acceptable in my world) Id be sending chips back to the manufacturer if that was the case. None of my paulsons or cps china clays have any chunks left over after play. If you cant make a chip that sticks together maybe your in the wrong business. Again just an opinion.
Detroitdad (Bill) had a large china clay cash set. The orange quarters were literally flaking apart, there would be orange dust all over the table as we were playing. These were the solids in the Greek Key mold.
What we saw was many, many tiny bits of material off the white $1s -- size ranging from that of table salt, to that of kosher salt. All over the table, after several hours of play. Like someone had been grinding white peppercorns over the table.
Some of us brought it up on CT, but Joe and those involved in the buy never addressed the matter at all. I doubt anyone was looking for any recompense, but it would have been nice to have someone step up and say that yes, there was a problem with some of the formulary, and we've taken steps to correct it.
The guy I gave them to still plays with them, and they still flake. It makes me feel guilty, like I should give him another set.
I'm glad to hear that no one has noted any problems with the CPS chips...