In 2010, the US military had a problem. It had bought over 59,000 microchips destined for installation in everything from missile defense systems to gadgets that tell friend from foe.
The chips turned out to be counterfeits from China, but it could have been even worse. Instead of crappy Chinese fakes being put into Navy weapons systems, the chips could have been hacked, able to shut off a missile in the event of war or lie around just waiting to malfunction.The Intelligence Advanced Research Projects Agency, the spy community’s way-out research arm, is looking to avoid a repeat. The Trusted Integrated Circuit program is IARPA's attempt to keep foreign adversaries from messing with our chips—and check the circuits for backdoors once they’ve been made.
The US has been worried about its foreign-sourced chips in its supply chain for a while now. In a 2005 report, the Defense Science Board warned that the shift towards greater foreign circuit production posed the risk that “trojan horse” circuits could be unknowingly installed in critical military systems. Foreign adversaries could modify chips to fizzle out early, the report said, or add secret back doors that would place a kill switch in military systems.
The problem is that the United States isn’t the only game in town anymore when it comes to building better chips. Foreign chip foundries—companies that manufacture chips for third parties—are churning out more advanced products and making regular chips cheaper and more quickly. American military and intelligence customers would love to take advantage of some of these developments, but they don’t want to limit themselves to just US-made technology.
http://arstechnica.com/tech-policy/news/2011/06/spies-military-looking-for-hacker--backdoor-proof-circuits.ars