No doubt about it. He is using your photo. Since you have a copyright notice on your website site, I'm sure you have some legal recourse against this individual. Maybe someone else has some advice on what action you can take against him for using something from your website.

It does not make it right, but this type of copyright infringement happens everyday where people copy photos from one website for use on another.

Main concern here is that he is selling a valuable but is misleading potential buyers by passing off your photo as an image of the chip that his is selling. I would suggest sending an email to eBay but we all know how worthless they can be about complaints.