How China Used a Tiny Chip to Infiltrate U.S. Companies.
The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources. bloomberg 
Microchips found on altered motherboards in some cases looked like signal conditioning couplers.
Since the implants were small, the amount of code they contained was small as well. But they were capable of doing two very important things: telling the device to communicate with one of several anonymous computers elsewhere on the internet that were loaded with more complex code; and preparing the device’s operating system to accept this new code. The illicit chips could do all this because they were connected to the baseboard management controller, a kind of superchip that administrators use to remotely log in to problematic servers, giving them access to the most sensitive code even on machines that have crashed or are turned off.
U.S. officials had caught China experimenting with hardware tampering before, but they’d never seen anything of this scale and ambition. The security of the global technology supply chain had been compromised, even if consumers and most companies didn’t know it yet.
The investigators concluded that this intricate scheme was the work of a People’s Liberation Army unit specializing in hardware attacks, according to two people briefed on its activities. The existence of this group has never been revealed before, but one official says, “We’ve been tracking these guys for longer than we’d like to admit.”
Amazon’s security team conducted its own investigation into AWS’s Beijing facilities and found altered motherboards there as well, including more sophisticated designs than they’d previously encountered. In one case, the malicious chips were thin enough that they’d been embedded between the layers of fiberglass onto which the other components were attached, according to one person who saw pictures of the chips.
In the three years since the briefing in McLean, no commercially viable way to detect attacks like the one on Supermicro’s motherboards has emerged—or has looked likely to emerge. Few companies have the resources of Apple and Amazon, and it took some luck even for them to spot the problem.
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Setting the Record Straight on Bloomberg BusinessWeek’s Erroneous Article. amazon
Making sense of the Supermicro motherboard attack. Do all the pieces pass the sniff test? post
So which is true: did the Chinese government succeed in infiltrating the hardware supply chain or did Bloomberg's journalists go too far in their assertions? register