Physical Unclonable Functions or (PUFs) use device unique random patterns to differentiate chips from each other.
Because the key is not permanently stored, it is not present when the device is not active (no key at rest) and hence cannot be found by an attacker who is opening up the device and compromising all the memory contents.
Reference
https://www.intrinsic-id.com/wp-content/uploads/2017/05/gt_KSI-PUF-web-1611.pdf