Chelsea_SunChelsea_Sun ・ Oct. 17, 2024
Intel China Responds to Allegations of Security Issues Raised by Chinese Cyber Association
The CSAC’s call for a cybersecurity review could further escalate tensions between Beijing and Washington, following U.S.-led efforts to limit exports of advanced chips and semiconductor-manufacturing equipment to China.

TMTPOST -- Intel's China unit said on Thursday it has always prioritized product safety and quality, after a Chinese cybersecurity association called for a security review of the U.S. chipmaker's products sold in China.

"We will maintain communication with the relevant authorities, clarify any concerns, and reaffirm our commitment to product safety and quality," the company said in a statement on its official WeChat account.

In a WeChat post on Wednesday, the Cyber Security Association of China (CSAC) claimed that Intel's central processing units (CPUs) have multiple security flaws, with certain chip series causing video games to crash.

According to official information, CSAC was established on March 25, 2016, in Beijing. It is a national, industry-specific, and non-profit social organization under the supervision of the Cyberspace Administration of China. The association is formed voluntarily by institutions, enterprises, and individuals engaged in the cybersecurity industry, education, research, and applications within the country.

The group warned that these vulnerabilities could allow hackers to exploit a secret backdoor in Intel’s chips. It also criticized Intel for its slow response to previous breach complaints.

CSAC recommended launching a cybersecurity review of Intel products sold in China to "effectively safeguard the nation's security and protect the legitimate rights of Chinese consumers."

The CSAC’s call for a cybersecurity review could further escalate tensions between Beijing and Washington, following U.S.-led efforts to limit exports of advanced chips and semiconductor-manufacturing equipment to China.

This scrutiny of Intel comes more than a year after Micron Technology, the largest U.S. memory chip maker, became the first foreign semiconductor firm to undergo such a review in China.

Intel’s CPUs power a wide range of consumer electronics, including laptops and data-center servers in China, with servers based on Intel’s X86 architecture holding a 90% market share in the country as of 2023, according to a report from the China Academy of Information and Communications Technology.

China accounted for 27% of Intel’s total revenue of $54.2 billion in 2023, according to the company’s annual report. The CSAC noted that while Intel benefits greatly from the Chinese market, it has also been a beneficiary of the U.S. Chips and Science Act, which provides subsidies to boost domestic semiconductor research and production.

In its WeChat post, the CSAC highlighted several security vulnerabilities in Intel chips, such as Downfall, GhostRace, and NativeBHI. The Downfall vulnerability, also known as Gather Data Sampling, was discovered in 2022 but made public in 2023. It allowed attackers to steal sensitive data through speculative execution flaws.

The post also pointed to Intel’s slow response in addressing a video game-crashing issue related to its 13th and 14th generation Core processors, which had drawn numerous user complaints in late 2023. Intel attributed the problem to a “microcode algorithm” causing incorrect voltage requests to the processor, which it eventually addressed in mid-2024.

The CSAC further cited hardware security expert Damien Zammit, accusing Intel of embedding a secret backdoor in its chips that could be exploited by hackers. Zammit previously raised concerns in 2016, claiming that Intel’s X86 CPUs included a hidden Management Engine (ME) subsystem, which functions as a separate processor core and cannot be disabled. Cybersecurity experts have long viewed ME as a potential security threat because of its proprietary, inaccessible code.

According to TechRepublic, which referenced Intel's statements, ME is intended to allow enterprises to manage computers remotely via Intel’s Active Management Technology feature.

Despite the concerns, data from China Procurement and Tendering Network shows that more than 20 domestic organizations, including hospitals and educational institutions, have continued to procure Intel's AI-related Xeon processors this year. This suggests that Intel’s overall bidding and procurement activities in China have not been significantly affected.

In a related development, China’s Ministry of State Security revealed on Wednesday an illegal mapping case involving a foreign company. This firm, referred to as "Company A," allegedly collaborated with a Chinese partner to conduct unauthorized geographic information mapping under the pretext of autonomous driving research, potentially endangering national security.

In response, Intel’s autonomous driving subsidiary, Mobileye, issued a statement on Thursday, asserting that it operates fully within legal frameworks in all relevant markets, including China, and under the supervision of qualified local partners.

Tesla's Global Vice President and Head of External Affairs for China, Tao Lin, also commented on the issue, saying, "Compliance is the baseline for business operations. Tesla firmly believes that sustainable intelligent development can only be achieved through compliance."

Following the recent developments, Intel shares dropped by 4% at the opening of the U.S. market on Wednesday and closed down by 1.54%.

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