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Security China Apple Technology

China Infiltrated Apple, Amazon and Other US Companies Using Spy Chips on Servers, According To Bloomberg; Apple, and Amazon, Among Others Refute the Report (bloomberg.com) 369

Data center equipment run by Amazon Web Services and Apple were subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process, Bloomberg BusinessWeek reported Thursday, citing 17 people at Apple, Amazon, and U.S. government security officials, among others. The compromised chips in question came from a server company called Supermicro that assembled machines used in the centers, the report added. The scrutiny of these chips, which were used for gathering intellectual property and trade secrets from American companies, have also been the subject of an ongoing top secret U.S. government investigation, which started in 2015, the news outlet reported. Amazon, which runs AWS, Apple, and Supermicro have disputed summaries of Bloomberg BusinessWeek's reporting.

The report states that Amazon became aware of a Supermicro's tiny microchip nested on the server motherboards of Elemental Technologies, a Portland, Oregon based company, as part of a due diligence ahead of acquiring the company in 2015. Amazon acquired Elemental as it prepared to use its technologies for what is now known as Prime Video, its video streaming service. The report adds that Amazon informed the FBI of its findings. From the report: One official says investigators found that it eventually affected almost 30 companies, including a major bank, government contractors, and the world's most valuable company, Apple. Apple was an important Supermicro customer and had planned to order more than 30,000 of its servers in two years for a new global network of data centers. Three senior insiders at Apple say that in the summer of 2015, it, too, found malicious chips on Supermicro motherboards. Apple severed ties with Supermicro the following year, for what it described as unrelated reasons. [...] [Update: Some counterpoint: According to an earlier report by The Information, security concerns were indeed a reason why Apple and Supermicro parted ways.] A U.S. official says the government's probe is still examining whether spies were planted inside Supermicro or other American companies to aid the attack. Some background on Supermicro, courtesy of Bloomberg: Today, Supermicro sells more server motherboards than almost anyone else. It also dominates the $1 billion market for boards used in special-purpose computers, from MRI machines to weapons systems. Its motherboards can be found in made-to-order server setups at banks, hedge funds, cloud computing providers, and web-hosting services, among other places. Supermicro has assembly facilities in California, the Netherlands, and Taiwan, but its motherboards -- its core product -- are nearly all manufactured by contractors in China. The company's pitch to customers hinges on unmatched customization, made possible by hundreds of full-time engineers and a catalog encompassing more than 600 designs. Further reading: Amazon Offloaded Its Chinese Server Business Because it Was Compromised, Report Says.
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China Infiltrated Apple, Amazon and Other US Companies Using Spy Chips on Servers, According To Bloomberg; Apple, and Amazon, Am

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  • by Anonymous Coward on Thursday October 04, 2018 @08:52AM (#57424240)

    Chinese market poison as baby food. Nobody should be doing business with them.

    • by Jahoda ( 2715225 ) on Thursday October 04, 2018 @11:28AM (#57425288)
      The Chinese _executed_ quite a few people responsible for that. Say what you will,heads literally rolled. I know you're just here to stir shit up, so you don't care, however.
      • by Anonymous Coward on Thursday October 04, 2018 @12:28PM (#57425746)

        Heads rolled after the fact, yes. Mostly to save face, I think, and make a public message of "Look! See, we have laws too!" Every time it happens, it comes off looking more like PR and and an attempt to hobble further investigation. My question is always: what controls are you pitting in place to make sure this doesn't happen again?

        Whether it's adulterated baby formula, or adulterated medicine, or adulterated pork buns, t comes down to someone taking risks to make a fast profit. Plenty of that happens everywhere in the world, but it seems to be in China that the controls are lax enough and the people are desperate enough to actually KILL THEIR CUSTOMERS in order to make money.

  • by WankerWeasel ( 875277 ) on Thursday October 04, 2018 @08:53AM (#57424246)
    Apple and other companies have responded. It would seem Bloomberg has done little to provide any evidence over the past year, while these companies have investigated and found nothing of substance to the claims. Apple's response in particular is strongly worded and makes it clear that they find these claims to be baseless. https://www.bloomberg.com/news... [bloomberg.com]
    • Re: (Score:3, Informative)

      by Anonymous Coward

      Apple also says that they never intentionally slow down old phones and that police can't hack the iPhone.

      Who cares what Apple says? They lie all the time.

    • Of course they're going to deny this. Oh yeah btw we've had chinese chips spying on everything for who knows long.
    • by Anonymous Coward

      "no reasonable person would believe [us]"

      Didn't they recently suffer from a severe lapse in manufacturing, allowing the Intel Management Engine to be reprogrammed? The one that has full access to the Cpu?

      Prior, they had root access without passwords.

      How can they refute it so strongly? Both of those gave full access to the computer. Both had to have been introduced by someone

    • by Rick Zeman ( 15628 ) on Thursday October 04, 2018 @09:31AM (#57424516)

      Sure, I bet it was strongly worded. With all of Apple's production in China, the Chinese could stop every iDevice from being made until Apple restaged manufacturing outside of China. While Apple has the cash reserves to weather the lack of product for over a year while that happens, the decline in market share during that interregnum would be near-fatal, if not fatal.

    • by harrkev ( 623093 ) <(moc.liamg) (ta) (noslerrah.nivek)> on Thursday October 04, 2018 @10:33AM (#57424898) Homepage

      As a guy who DESIGNS hardware, I can confidently say this....

      Yes, it is possible to make a tiny chip that can disguise itself as a capacitor or a resistor. However, this part must be designed into the board for that purpose. There is such a thing as a "one wire interface." The part that it is talking to must know it is there and be intentionally taking to it.

      However, adding a chip like this (a two-terminal part as shown in the article) to an existing product not designed for it seems very problematic. I can immediately think of three options for such a ghost part:

      1) Pretends to be a signal filter capacitor. Possible, but it likely would not have the power to actively disrupt the signal flowing past it. This thing would only have access to ONE power rail and can get parasitic power off of the signal. But this kind of part would not have the power to actively disrupt the signal.

      2) Pretends to be a resistor. This is even worse, because usually low-value resistors are used, so the voltage drop would be minimal. I cannot imagine how this part would get its power.

      3) Pretend to be a pull-up or pull-down resistor. This might be useful in mis-configuring a part. It could alter its configuration to get the board into some sort of test mode. The problem is that this configuration would not allow the chip to receive any information from the outside world. So how do you control it?

      Of course, this assumes that the part really is just a two-terminal part (as shown in the article). If they replace an active device, something with three or more pins, then all of those limitations go away. Some sort of level converter in a signal path would be an ideal candidate. If you could drop a chip somewhere in the Ethernet interface path, then you can do anything you want... But those chips would look like chips and could not be mistaken for a passive component.

      • by EvilSS ( 557649 ) on Thursday October 04, 2018 @11:29AM (#57425302)
        So playing devil's advocate here: They could have modified the design, burying the extra traces in interior layers. After approval and the initial production run would you go poking around the boards being shipped out that closely to notice some small extra vias that had been masked over? Would you pull a board apart to view the inner layers if there were no problems? We aren't talking about a rogue employee here but a state sponsored program so you would expect it to have the engineering capability to modify a board design in a way as to not interfere with it's normal functionality. If they compromised the PCB manufacturer and assembly partner they could slip it in any time they wanted to.

        Now I'm not saying I'm buying this story. The very specific, very adamant denials from Amazon isn't the type of denial you would normally expect in a situation like this if they coudln't talk. But it is possible.
        • by harrkev ( 623093 )

          If they could modify the board, then yes, this sort of thing becomes MUCH more likely.

          The down side to this is that modifications MIGHT be detectable by tests. Lots of things can go wrong while building and assembling a board so tests are standard. Mucking about with it might create changes that can be detected during a standard bed-of-nails test. If the same company controls the test, then they could get away with it easily.

          The other side is that changing the board is easy to prove once you discover it.

          • If they could modify the board, then yes, this sort of thing becomes MUCH more likely.

            The down side to this is that modifications MIGHT be detectable by tests. Lots of things can go wrong while building and assembling a board so tests are standard. Mucking about with it might create changes that can be detected during a standard bed-of-nails test. If the same company controls the test, then they could get away with it easily.

            The other side is that changing the board is easy to prove once you discover it.

            That actually depends. Supposedly this thing is sitting on some data lines between the host CPU and the BMC. Having hardware debug level access to the CPU, it may be able to detect the current state of the system. For instance, Intel has a check you can make to see if the system has been marked as “End of Manufacturing” which is likely when they would do any quality tests. The chip could intelligently change behavior based on all kinds of things, depending on how sophisticated they’re

        • How on earth could they modify supermicro's design without Supermicro knowing? If SM doesn't design their own boards that might be possible but I doubt that's the case.

          About the only way I can see something like this type of compromise would be useful would be to either replace the aspeed BMC or hook something into the BMC.

          Both would likely be noticed by a QC check of the boards. The sneaky one would be to replace the whole Aspeed BMC with a custom chip but you'd have the problem of having to run the BMC ex

      • I think they were concerned about replacing chips for data communication and management functions with versions modified to perform the same function, plus send additional information to some nefarious location for analysis. I think the photo of a passive component is a red herring.

        Frankly, I smell a rat, not because its implausible to replace chips, but that it wouldn't have been spotted long ago and publicized. All these companies are denying that this is happening and I have yet to see compelling tech
  • by Kuruk ( 631552 ) on Thursday October 04, 2018 @08:53AM (#57424248)
    China been doing this for years and it's only just coming out.
    • China been doing this for years and it's only just coming out.

      Or is it that Bloomberg has been doing this for years and the parties they're talking about are all tired of evidence-free reporting? I don't care about the statement from China's government, because Chinese government. But the people at Apple and Amazon aren't exactly slouches when it comes to dealing thousands of servers and security issues. If thousands of servers were phoning home, they'd know.

      • by jythie ( 914043 ) on Thursday October 04, 2018 @09:04AM (#57424314)
        On the other hand, knowingly having compromised servers like that would be a PR nightmare, so Apple and Amazon would also have an incentive to say 'everything is fine'. That is what makes stories like this so frustrating... unless the FBI chimes in, everyone is saying pretty much what you would expect to say regardless of if the story is accurate or not.
        • by gosand ( 234100 )

          On the other hand, knowingly having compromised servers like that would be a PR nightmare, so Apple and Amazon would also have an incentive to say 'everything is fine'. That is what makes stories like this so frustrating... unless the FBI chimes in, everyone is saying pretty much what you would expect to say regardless of if the story is accurate or not.

          Not only that, but if it WAS discovered and our government knew, we certainly wouldn't come out and confront China about it. We would have the advantage because we could then provide misinformation to a country that was spying on us.

      • by Zocalo ( 252965 )
        Complete lack of any hard evidence to support Bloomberg's claims aside, if you were to take it at face value then you've got to hand the Amazon team some *serious* respect for noticing that there was an additional chip the size of a pencil tip on some of a their server boards that was not present on others or in the design spec. And that's before you consider that they didn't just blow it off and supposedly figured out at least some of the things that it was up to.

        Still not quite as much respect as I'm
        • Complete lack of any hard evidence to support Bloomberg's claims aside, if you were to take it at face value then you've got to hand the Amazon team some *serious* respect for noticing that there was an additional chip the size of a pencil tip on some of a their server boards that was not present on others or in the design spec. And that's before you consider that they didn't just blow it off and supposedly figured out at least some of the things that it was up to.

          According to the article, Amazon saw unexplained network traffic during their due diligence inspections of Elemental's operations, couldn't explain it themselves, but did isolate it to specific machines, and shipped them off to a security firm in Canada to figure them out.

          That Canadian company is the one who deserves serious respect for determining that nothing in the CPU or the OS was anything other than as expected and so the problem must be somewhere on the board. They're the ones who went over those bo

      • See Apple's Statement here: https://www.bloomberg.com/news... [bloomberg.com]

        Looks like Bloomberg only believes their reporter's secret sources and refuses to believe Apple when they investigate when consulted for comments and refute repeatedly the allegations.

  • China.
    • by Bongo ( 13261 )

      Storing it in the wangpan. [1]

      [1] Any Chinese speakers care to confirm that means "cloud filestore" ?

  • Let's assume the networking devices were compromised, and they were part of the private intranet on which trade secrets were transmitted. The data still has to be transmitted off of that network somehow. That would certainly raise major flags with these kinds of tech companies. Unless.... it required some physical connection to the device, such as inserting a USB drive to download data directly.

    • by EvilSS ( 557649 )
      So one interesting aspect of this is that these are video encoding servers for streaming video that Bloomberg claims were compromised. Now if I'm a state actor wanting to exfiltrate data that type of application has some interesting possibilities.
  • Bloomberg better have evidence to back the claims they made against Supermicro.
    Since Amazon has said that reports of it finding a chip or working with the FBI are false it does not look good for Bloomberg.
    • Re: (Score:2, Insightful)

      by Anonymous Coward

      And if there is no lawsuit, what does that tell you?

      (That was the rhetorical, but here's the answer: Somebody would prefer to keep the details out of a courtroom.)

  • Every company denies, anon informants, no one from FBI interviewed.
  • Turn About (Score:5, Interesting)

    by Luthair ( 847766 ) on Thursday October 04, 2018 @09:32AM (#57424532)
    Remember when the USA did the same thing [arstechnica.com]?
  • by ElitistWhiner ( 79961 ) on Thursday October 04, 2018 @09:38AM (#57424564) Journal

    What? You're just now learning about it and act all surprised...please.

    There was never any question what price U.S. manufacturer's were willing to pay outsourcing to Asia. It was just a question how long.

    Apple et. al. are not stupid clucks, they went over motherboards with a microscope. They saw exactly how true to their design finished goods matched. Amazon paid a 3rd party due diligence and its public. SO, we have the answer now.

    • Apple et. al. are not stupid clucks, they went over motherboards with a microscope. They saw exactly how true to their design finished goods matched. Amazon paid a 3rd party due diligence and its public. SO, we have the answer now.

      Please. Do you think that each and every motherboard was inspected this way? Just one company called out in the article, Elemental, ordered thousands of units. After they confirm that the units are up to spec they're not going to continue any deep inspection.

      If you read the article, you'll notice that much of the deception happened when an overloaded factory sub-contracted the work; the sub-contractors were coerced into varying from the design and inserting the chips. A subset of motherboards containin

  • So... (Score:5, Insightful)

    by argStyopa ( 232550 ) on Thursday October 04, 2018 @09:38AM (#57424566) Journal

    ...let's hear more from people whinging about Trump's 'trade war' with China.

    China's been a shitty actor on the world stage since they bred themselves out of irrelevancy.

    Foreign companies have to establish a Chinese business, owned 51% by Chinese who almost always end up being a front for the PLA.
    Draconian censorship laws. No free speech. No freedom of religion.
    Currency manipulation and disregard for norms of international economic (and other) reporting.
    Military occupation and absorption of neighbors it deems "were *actually* China anyway".
    Sorry Hong Kongers, I guess you don't get to keep democracy and nobody cares...
    An arbitrary, dangerously confrontational foreign policy including sweeping territorial claims.
    Environmental destruction with impunity. ...and yet we should curry their favor so we can keep buying $9 folding chairs?

    I don't like Donald Trump for a number of reasons, but the US confrontation with China is LONG past due; waiting any longer would likely make it military when China finally gets brazen enough to try to grab Taiwan.

    • by gtall ( 79522 )

      There's stupid confrontation with China and then there is intelligent confrontation with China. Trump's is the stupid kind by giving the Chinese rump government the tools with which to fight back. And pissing off the U.S. allies, screwing up other trade agreements, etc. is not a recipe for successfully countering Chinese aggression.

      • by swb ( 14022 )

        Trump's public confrontation with China may be stupid, but my assumption is he lacks the mental horsepower to actually decide what specific sanctions/tariffs should be imposed in this little dustup.

        My guess is the actual technical details are the brainchild of people who have a deeper understanding of the Chinese economy and its vulnerabilities and they are more measured and strategic than simply slapping tariffs on stuff because it says "made in China". The people coming with specific tariffs have likely

  • by Austerity Empowers ( 669817 ) on Thursday October 04, 2018 @09:48AM (#57424616)

    I don't know to what degree "China" (it's government, it's people, or it's corporations, state owned or otherwise) are spying, but I do know it's not 0, not even close to 0. I have been close to accusations and convictions, they are absolutely spying using any available means. That's not surprising. If it made any sense to do it, adding stray hardware/software to a PC is definitely a viable approach to compromising it.

    The real issue is technical. How do we create a secure compute environment? Apple has taken the route on its phones of building a very effective and secure trust chain. It is pretty hard for an unauthorized user to slip in stray firmware on their phones, I don't want to say impossible because there are some known and pretty exotic exploits. But very hard. Their design is such that even their MFGs cannot sneak in stray code to spy on you. The weakest point is still the single authorized user, and their ability to protect their passwords and biometrics. Apple's route also makes you, the owner, a perpetual customer rather than an owner. If they choose to lock you out, there's nothing you can do about it, your $1k phone is a paperweight.

    PCs (I'm including desktops, servers and laptops) on the other hand are pretty much a free for all. The MFG can sneak on just about anything in their BIOS/EFI implementation, and anyone up and down the chain can do so without much oversight. It's a pretty open and competitive market, with many small players of little to no account, all trying to make the sale. Each of them provides their own hardware, and some EFI implementation they probably bought and then tailored to their implementation. Someone could also have added backdoors. That in turn hands off to my choice of OSes, which themselves could easily be compromised and I wouldn't know better until something happened. I am unquestionably the owner of this system, and can do anything I would like, but I also cannot rely on anything up and down the system. I'm the owner of a very leaky boat.

    What we need is a system that can both be trustworthy and robust to middle-man attackers who may, at times, have direct hardware access, but still allows me to be the absolute owner of my hardware. I may make bad choices, those bad choices may compromise my system, but I need a foolproof way of knowing when I'm making a bad choice. It's not that easy of a problem in the current ecosystem, and we're waiting for someone to get caught doing something bad that forces our hand.

    • If they choose to lock you out, there's nothing you can do about it, your $1k phone is a paperweight.

      Umm... except sue.

      • Re: (Score:3, Informative)

        by Anonymous Coward

        Can't even do that - the first thing you do when the iPhone turns on is agree to a clickwrap license where you give up your right to sue and agree to binding arbitration with an arbiter of Apple's choosing. This same agreement also lets Apple remotely brick your phone with no recourse.

    • Trusted Platform Module (TPM) [wikipedia.org]

      Although TPM only addresses some of the concerns. It's only useful for detecting hardware interference post-installation, and only as long as the manufacturer doesn't leak the burned-in keys - but that's not something that could ever be easily solved, short of fabricating everything in-house.

      "Anyone with access to the private endorsement key would be able to forge the chip's identity and break some of the security that the chip provides. Thus, the security of the TPM relies enti

  • The Joke is You Probably Already Bought Them!

    Https://www.youtube.com/embed/cROY4m4Ftiw

  • Ok, explain this to me...

    How is a single chip on a motherboard going to do the following and do it without someone noticing:

    1: Intercept data on the server without knowledge of what OS is running and/or without a driver to facilitate OS access?

    2: Send that data to some 3rd party, through a firewall, without the bandwidth usage being noticed?

    I know someone is going to answer #1 by saying "it'll just send everything in memory / traveling over the bus", but then you wind up hitting #2 because that would use

    • by b0bby ( 201198 )

      Assuming the article is correct:
      1. They were connected to the baseboard management controller (BMC) - so they were basically opening up the IPMI
      2. My takeaway would be that you could use small command and control which would be very hard to spot, then make other changes which could exfiltrate only the data you were interested in.

    • The story is compelling, and while there is no part of me that would believe for a second China doesn't want to steal every piece of IP they could get their hands on, on the face this looks and sounds like movie plot stuff.
      While it sounds super scary to "plant a chip" and "have a backdoor", the actual physical implementation isn't so straightforward. The IC shown is very small. It seems very unlikely that there just happen to be all the necessary PCB traces all grouped together so that a tiny little IC ca
      • by Pascoea ( 968200 )
        Without pouring through the article again for references, the article made it sound like there were spies(tm) that infiltrated Supermicro. Having people like that on the inside would make it much easier to surreptitiously insert a spot for a part. And if the purpose of the device is originally designed to provide signal conditioning between the boot prom and the baseboard management controller it wouldn't take nearly as significant of an effort.
    • How is a single chip on a motherboard going to do the following and do it without someone noticing:

      1: Intercept data on the server without knowledge of what OS is running and/or without a driver to facilitate OS access?

      2: Send that data to some 3rd party, through a firewall, without the bandwidth usage being noticed?

      The entire point of this article is that traffic was noticed. Amazon wanted to buy Elemental. Amazon was auditing Elemental. Amazon's auditors found unexplained network traffic. Not very much of it, but they found some. And in the process of trying to explain it, somebody got very intrigued, and shipped off the servers that were sending unexplained packets to a security firm in Canada, and that's how Bloomberg has a story to write about. The data was noticed.

      There's a reason why US spy agencies prefer

  • Seriously, I expect that trump will push major changes in the west over this. And yes, it is time to get control back due to security issues.
    • Seriously, I expect that trump will push major changes in the west over this.

      He’s already tweeted that affected companies should pick up and move their manufacturing to Russia.

      • LOL.
        Actually, that was pretty good.
        . Have to admit that I will be happy when he is booked for treason, but for dealing with China, he has done more than any president since Kennedy.
      • ROFL!!!

        I never have mod points when I would just LOVE to have mod points. You'd be getting one for really, truly making me laugh out loud over that!

        Thanks for brightening my day.

  • It sounds to me like the corporations named denied the report. They're a long, long way from refuting it.

  • They told us we were too dumb to make our own stuff.

    Then they told us that people are too expensive to make our own stuff.

    Then they told us after automating the factory floor, making labor costs insignificant we have to have a monopoly or we can't compete.

    I wonder what their excuse will be now why we can't make our own stuff?

    • They told us we were too dumb to make our own stuff.

      Then they told us that people are too expensive to make our own stuff.

      Then they told us after automating the factory floor, making labor costs insignificant we have to have a monopoly or we can't compete.

      I wonder what their excuse will be now why we can't make our own stuff?

      The excuse, which isn't an excuse, is that we don't know how. It's quite literally true. Building a high frequency mainboard correctly is nontrivial, and while we know how to design them, and know how to set up automated tests for them, we don't know all the little tricks that actual manufacturers have learned by doing the job for decades.

      Sparkfun has been finding that out, and documenting some of it publicly. They bought a pick and place machine so they could fabricate their own boards for some of the s

  • by gestalt_n_pepper ( 991155 ) on Thursday October 04, 2018 @12:35PM (#57425824)

    Buying chips offshore is a national security risk and always has been. If you're stupid enough to think that the Chinese military won't exploit chips/software/tech products bound for the USA for their own benefit, I have a bridge I can sell you.

    Of course, as always, profits before country. Can't restrict Northrop Grumman, ya know. And you can bet the current crop of republican technopeasants don't have this on their radar.

  • Orwell was an optimist. Nation states are all posturing to see who can create the culture most similar to 1984 without anyone raising the alarm. "Boil the frog" is the new mantra for this effort - take away freedoms and security in small bites and before you know it you've lost everything.

  • by nuckfuts ( 690967 ) on Thursday October 04, 2018 @01:52PM (#57426424)

    I'd like to hear about mitigation. Would simply not configuring an IP address on the BMC be enough?

    I generally configure whatever kind of BMC I have available on a server (such as HPE iLO or Dell iDRAC) because I like the idea of low-level remote access, but in truth I can't recall ever having used it to solve a problem.

  • by Jim Sadler ( 3430529 ) on Thursday October 04, 2018 @02:14PM (#57426550)
    The US, a few years ago, put chips in top end printers, under the assumption that when they were exported that foreign governments would be the typical purchaser. So if you were in Iraq and wondered why that smart bomb picked your chimney it was due to the printer sending the address. Sometimes what goes around comes straight down right at your noggin.
  • by manu0601 ( 2221348 ) on Thursday October 04, 2018 @09:05PM (#57428534)
    I have a few Supermicro motherboards. How can I check if they are compromised? Is there some audit tool available?

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