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Counterfeit Chips Raise New Terror, Hacking Fears 173

mattnyc99 writes "We've seen overtures by computer manufacturers to build in chip security before, but now Popular Mechanics takes a long look at growing worries over counterfeit chips, from the military and FAA to the Department of Energy and top universities. While there's still never been a fake-chip sabotage or info hack on America by foreign countries or rogue groups, this article suggests just how easy it would be for chips embedded with time-release cripple coding to steal data or bring down a critical network - and how that's got Homeland shaking in its boots (but not Bruce Schneier). While PopMech has an accompanying story on the possible end of cheap gadget manufacturing in China as inflation rates soar there, it's the global hardware business in general that has DoD officials freaking out over chips."

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