NEWS//They said; they said

A month ago Bloomberg Businessweek reported on a story that had come together over three years. Bloomberg claimed that China's People's Liberation Army had hacked server motherboards used in more than 30 U.S. companies. The Washington Post updated Bloomberg's report.

Tiny chip, big problem

A tiny microchip, the size of a grain of rice, was hidden on the motherboards when they were assembled in China. The microchip allows backdoor access to any network that contained one of the infected servers.

MSN says, “The [Bloomberg] report claims that Chinese spies systematically infiltrated U.S. corporate and government computer systems by installing hardware exploits on the motherboards of servers destined for widespread use, from video-streaming services to the CIA. According to Businessweek, the infected machines provided a backdoor into any network on which the machines were installed.”

Tiny chip, big denial

Apple and Amazon, who use these servers, and China's Supermicro, who produced the motherboards, have issued unconditional denials.

Apple’s denial states, “The October 8, 2018 issue of Bloomberg Businessweek incorrectly reports that Apple found ‘malicious chips’ in servers on its network in 2015. As Apple has repeatedly explained to Bloomberg reporters and editors over the past 12 months, there is no truth to these claims.” Steve Schmidt, Amazon's Chief Information Security Officer, also offered his company's denial.

Tiny chip, big confusion

The truth of the matter is not clear. One is left to decide whether Bloomberg’s reporting or Apple and Amazon’s denials or more credible. However, China’s reputation as a trustworthy supplier of computer components is now tarnished.

“The truth of Bloomberg Businessweek’s investigation might matter less than the concerns it opens, or the open worries it further irritates—at the White House, among U.S. regulating bodies, and among the general public,” MSN suggests.

Sources: Bloomberg, Washington Post (1), (2), Reuters, The Atlantic, Furtune, Emptywheel, MSN, Tech.