Poses Risk to Military and Sensitive Computer Networks
WASHINGTON, DC – The US Semiconductor Industry testified
before Congressman Michael McCaul’s Oversight & Investigations Subcommittee
hearing that a DHS policy established in 2008 has opened the floodgates to
counterfeit microchips entering the US market. The US
military purchased 59,000 counterfeit microchips from China in 2010. Chairman
McCaul (R-TX) said the weakness in security raises concerns that military
equipment could malfunction placing US troops in undue dangerous situations.
It also raises the concern that rogue nations could use counterfeit chips
to help them hack into federal computer networks, possibly exposing sensitive
information to espionage.
The Department of Homeland Security helps chip makers verify
authenticity. However, in 2008 DHS changed its policy and stopped sending
companies photos with serial numbers and other identifying information which is
necessary for a company to determine whether a product is authentic or
counterfeit. Brian Toohey, President of the Semiconductor Industry
Association (SIA), testified it is now impossible to make this determination,
and easier for counterfeit chips to enter the marketplace.
04:31 – 5:24 (Time Code on YouTube Video)
McCaul:
“You want to help the government identify
counterfeit chips and it’s my understanding that the lawyers at the
Department have now determined that they cannot give you this information unless they have
basically taken all of the identifying information off of it. How can you
possibly identify if something is counterfeit when they have taken off all the code
numbers?”
Toohey:
“You’re exactly right, Mr. Chairman. You can’t.”
McCaul:
“So as a result of this legal policy or
analysis that was done, we probably have Godknows how many counterfeit chips
coming into this country and we’re excluding the private sector from being able to
assist DHS in identifying counterfeit chips coming into the country, is that
correct?”
Toohey:
“That’s exactly correct Mr. Chairman,
we’re desperate to help. We’ve been begging Treasury and DHS to let us help
stop these dangerous chips that are coming in.”
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