Last year, the U.S. Navy bought 59,000 microchips for use in everything from missiles to transponders and all of them turned out to be counterfeits from China.
Wired reports the chips weren't only low-quality fakes, they had been made with a "back-door" and could have been remotely shut down at any time.
If left undiscovered the result could have rendered useless U.S. missiles and killed the signal from aircraft that tells everyone whether it's friend or foe.
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More News On Fake Chinese Microchips Purchased For The U.S. military
Hacker alert: How the Pentagon almost blew it over fake chips from China -- Global Post
U.S. Spies Can't Stop Buying Fake Microchips from China -- Atlantic Wire
US Navy gets punked by Chinese microchips -- Pajamas Media
Fishy Chips: Spies Want to Hack-Proof Circuits -- Danger Room
Fishy chips: spies want to hack-proof circuits -- Wired (Updated)