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

New Products

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings.

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge.