Chinese Spy Chips Found In Amazon, Apple Hardware

Data center equipment run by Amazon Web Services (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) may have been subject to surveillance from the Chinese government via a tiny microchip inserted during the equipment manufacturing process, according to a Bloomberg report on Thursday. The claims in the report have been strongly disputed by the technology giants.

The chips, which Bloomberg said have been the subject of a top secret U.S. government investigation starting in 2015, were used for gathering intellectual property and trade secrets from American companies and may have been introduced by a Chinese server company called Super Micro that assembled machines used in the centers.

Apple, AWS and Super Micro dispute the report. Apple said it did not find the chips as asserted by the report — which cited anonymous government and corporate sources. Super Micro reportedly denied that it introduced the chips during the manufacturing.

Apple reiterated its strong denials of the report, stating: “We are deeply disappointed that in their dealings with us, Bloomberg’s reporters have not been open to the possibility that they or their sources might be wrong or misinformed. Our best guess is that they are confusing their story with a previously reported 2016 incident in which we discovered an infected driver on a single Super Micro server in one of our labs. That one-time event was determined to be accidental and not a targeted attack against Apple.”

AWS has also denied the report saying, “As we shared with Bloomberg BusinessWeek multiple times over the last couple months, at no time, past or present, have we ever found any issues relating to modified hardware or malicious chips in SuperMicro motherboards in any Elemental or Amazon systems.‎”

China has long been suspected — but rarely directly implicated — in spy campaigns based on hardware made there. The majority of electronic components used in U.S. technology are manufactured in China. Companies including component manufacturers Huawei and ZTE, as well as surveillance camera maker Hikvision, have all fallen under intense suspicion and scrutiny from the U.S. government in the past year.

Intellectual property theft is one of the core arguments for tough trade restrictions on China by the Trump administration.

5 Comments
  1. Alex Soppel 11 months ago
    Reply

    Dont listen to the bears guys, like I always say,days like these are great to buy the fucking dip.This is not the great market correction everyone has been waiting for. Earnings are going to crush estimates and we will see a new highs. Chill ! $amzn $appl $googl #stocks

  2. Hunter Gray 11 months ago
    Reply

    Buy on the dip $AMZN will be 2,500 – 3,000 $ end 2019

  3. Travis Morales 11 months ago
    Reply

    you are going to feel like a total fool when you panic sell the stocks you bought for long term at the bottom of a panic. #Options hedge, trade around a core. Grow a pair of them

  4. Oliver Renick 11 months ago
    Reply

    $AMZN picked up some calls on the 1900 support, so far so good, on this eod market bounce, lets see if sustainable. Broke out of channel.

  5. Don Amador 11 months ago
    Reply

    $AMZN can it hold 1895-1900 here

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