China Reportedly Used Microchips to Infiltrate U.S. Companies

China Reportedly Used Microchips to Infiltrate U.S. Companies

The claims have been strongly disputed by the technology companies.

Data center equipment run by tech giants, such as Amazon Web Services and Apple, may have bee infiltrated by the Chinese government by a tiny microchip inserted during the equipment manufacturing process, according to a stunning Bloomberg BusinessWeek report. The companies named in the report have strongly denied the claims. 

BusinessWeek  explains that the chips had been the subject of a secret U.S. government investigation since 2015 and were used for gathering intellectual property and trade secrets from American companies. The chips may have been introduced by a Chinese server company called Super Micro that assembles machines used in the centers. 

BusinessWeek reports that the problem was discovered in 2015 and confirmed by independent security investigators hired by the cloud providers. Super Micro servers were removed by Apple that year, according to the report, which also says that ties between Apple and Super Micro were severed the following year. A follow-up investigation involving several government agencies followed. 

Apple, AWS and Super Micro have all vehemently disputed the report by BusinessWeek, which heavy relies on anonymous government and corporate sources. Apple said it did not find the chips and Super Micro denied having introduced the chips during manufacturing. 

"We are deeply disappointed that in their dealings with us, Bloomberg's reporters have not been open about the possibility that they or their sources might be wrong or misinformed. Our best guess is that they are confusing their story with a previously reported incident in 2016 which we discovered an infected driver on a single Super Micro server in one of our labs," Apple said in a statement to CNBC. "That one-time event was determined to be accidental and not a targeted attack against Apple."

Intellectual property theft is one of the core arguments for touch trade restrictions on China by the Trump administration. China has been long suspected in spy campaigns based on hardware made there. 

In a statement to Security Today, Head of Hardware Security at F-Secure Andrea Barisani says he's skeptical of the report.

"It is certainly possible to mount supply chain attacks that can affect the security of COTS (Commercial Off The Shelf) hardware, albeit posing notable implementation difficulties," Barisani said. "If anything, there are only official denials on the story and the lack of technical details doesn't really favor the conclusions from a technical standpoint."

Moving forward, CEO of Fortanix Ambui Kumar says U.S. companies need to carefully vet their supply chain.

"Unfortunately, foreign countries manufacture most of our chips and systems, so it’s going to be tricky to protect against motivated nation-state actors," Kumar said in a statement to Security Today. "However, there is at least one component that is designed and integrity-controlled in USA, the CPU. Most of the new CPUs offer secure enclaves that keep applications and data protected even when such hardware implants are present. Enclaves are new but proven ways to protect sensitive data. If we cannot keep hardware implants away, may the best thing is to ensure security even when they are present."

About the Author

Sydny Shepard is the Executive Editor of Campus Security & Life Safety.

Featured

  • 5 Tips to Improve Your Password Security

    Change Your Password Day is right around the corner. Observed every year on February 1, the day aims to raise awareness about cybersecurity and underscores the importance of keeping passwords strong and up to date. Read Now

  • Enhancing Port Security

    DP World Yarimca, one of the largest container terminals of the Gulf of İzmit and Turkey, is a strong proponent of using industry-leading technology to deliver unrivaled value to its customers and partners. As the port is growing, DP World Yarimca needs to continue to provide uninterrupted operations and a high level of security.To address these challenges, DP World Yarimca has embraced innovative technological products, including FLIR's comprehensive portfolio of security monitoring solutions. Read Now

  • Hot AI Chatbot DeepSeek Comes Loaded With Privacy, Data Security Concerns

    In the artificial intelligence race powered by American companies like OpenAI and Google, a new Chinese rival is upending the market—even with the possible privacy and data security issues. Read Now

  • Survey: CISOs Increasing Budgets for Crisis Simulations in 2025

    Today, Cyber Performance Center, Hack The Box, released new data showcasing the perspectives of Chief Information Security Officers (CISOs) towards cyber preparedness in 2025. In the aftermath of 2024’s high-profile cybersecurity incidents, including NHS, CrowdStrike, TfL, 23andMe, and Cencora, CISOs are reassessing their organization’s readiness to manage a potential “chaos” of a full-scale cyber crisis. Read Now

New Products

  • Luma x20

    Luma x20

    Snap One has announced its popular Luma x20 family of surveillance products now offers even greater security and privacy for home and business owners across the globe by giving them full control over integrators’ system access to view live and recorded video. According to Snap One Product Manager Derek Webb, the new “customer handoff” feature provides enhanced user control after initial installation, allowing the owners to have total privacy while also making it easy to reinstate integrator access when maintenance or assistance is required. This new feature is now available to all Luma x20 users globally. “The Luma x20 family of surveillance solutions provides excellent image and audio capture, and with the new customer handoff feature, it now offers absolute privacy for camera feeds and recordings,” Webb said. “With notifications and integrator access controlled through the powerful OvrC remote system management platform, it’s easy for integrators to give their clients full control of their footage and then to get temporary access from the client for any troubleshooting needs.”

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area.

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.