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

  • Security Today Announces 2025 CyberSecured Award Winners

    Security Today is pleased to announce the 2025 CyberSecured Awards winners. Sixteen companies are being recognized this year for their network products and other cybersecurity initiatives that secure our world today. Read Now

  • Empowering and Securing a Mobile Workforce

    What happens when technology lets you work anywhere – but exposes you to security threats everywhere? This is the reality of modern work. No longer tethered to desks, work happens everywhere – in the office, from home, on the road, and in countless locations in between. Read Now

  • TSA Introduces New $45 Fee Option for Travelers Without REAL ID Starting February 1

    The Transportation Security Administration (TSA) announced today that it will refer all passengers who do not present an acceptable form of ID and still want to fly an option to pay a $45 fee to use a modernized alternative identity verification system, TSA Confirm.ID, to establish identity at security checkpoints beginning on February 1, 2026. Read Now

  • The Evolution of IP Camera Intelligence

    As the 30th anniversary of the IP camera approaches in 2026, it is worth reflecting on how far we have come. The first network camera, launched in 1996, delivered one frame every 17 seconds—not impressive by today’s standards, but groundbreaking at the time. It did something that no analog system could: transmit video over a standard IP network. Read Now

  • From Surveillance to Intelligence

    Years ago, it would have been significantly more expensive to run an analytic like that — requiring a custom-built solution with burdensome infrastructure demands — but modern edge devices have made it accessible to everyone. It also saves time, which is a critical factor if a missing child is involved. Video compression technology has played a critical role as well. Over the years, significant advancements have been made in video coding standards — including H.263, MPEG formats, and H.264—alongside compression optimization technologies developed by IP video manufacturers to improve efficiency without sacrificing quality. The open-source AV1 codec developed by the Alliance for Open Media—a consortium including Google, Netflix, Microsoft, Amazon and others — is already the preferred decoder for cloud-based applications, and is quickly becoming the standard for video compression of all types. Read Now

New Products

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.