Great question. Most hardware projects I've seen that market themselves as open source hardware provide the schematic and PCB design, but still use ICs that are proprietary. One of my companies, Tillitis, uses an FPGA as the main IC, and we provide the hardware design configured on the FPGA. Still, the FPGA itself is proprietary.
Another aspect to consider is whether you can audit and modify the design artefacts with open source tooling. If the schematics and PCB design is stored in a proprietary format I'd say that's slightly less open source hardware than if the format was KiCad EDA, which is open source. Similarly, in order to configure the HDL onto the FPGA, do you need to use 50 GB of proprietary Xilinx tooling, or can you use open tools for synthesis, place-and-route, and configuration? That also affects the level of openness in my opinion.
We can ask similar questions of open source software. People who run a Linux distribution typically don't compile packages themselves. If those packages are not reproducible from source, in what sense is the binary open source? It seems we consider it to be open source software because someone we trust claimed it was built from open source code.
We can play this game all the way down.
So at some point you have no option but to trust something/someone
FPGAs can help with this. They allow you to inspect the HDL, synthesize it and configure it onto the FPGA chip yourself. The FPGA chip is still proprietary, but by using an FPGA you are making certain supply chain attacks harder.
We don't, but using an FPGA can make supply chain attacks harder.
Let's assume you have a chip design for a microcontroller and you do a tapeout, i.e. you have chips made. An attacker in your supply chain might attack your chip design before the design makes it to the fab, maybe the attacker is at the fab, or they change out the chips after you've placed them on your PCB.
If you use an FPGA, your customer could stress test the chip by configuring a variety of designs onto the FPGA. These designs should stress test timing, compute and memory at the very least. This requires the attacker's chip to perform at least as well as the FPGA you're using, while still having the same footprint. An attacker might stack the real FPGA die on top of the attacker's die, but such an attack is much easier to detect than a few malicious gates on a die. As for covertly gathering or manipulating data, on an FPGA you can choose where to place your cores. That makes it harder for the attacker to predict where on the FPGA substrate they should place probes, or which gates to attack in order to attack your TRNG, or your master key memory. Those are just some examples.
If you're curious about this type of technology or line of thinking you can check out the website of one of my companies: tillitis.se