Apple and Amazon blast China hack chip report

05 October, 2018, 08:40 | Author: Shannon Aguilar
  • Chinese spying microchips found in Apple, Amazon computers: report

The bugged servers and other equipment were sold to USA banks, hedge funds, and even government agencies by the San Jose-based company Supermicro Computer, according to Bloomberg Businessweek, which cites numerous anonymous intelligence and corporate sources in its shocking story that now threatens to seriously shake up the global technology supply chain and do significant damage to Chinese manufacturers and the country's developing microchip industry.

The chips provided a secret doorway into U.S. networks including Central Intelligence Agency drone missions, Pentagon data and United States navy warship command centres, according to an investigation by Bloomberg Businessweek. Bloomberg News' cybsecurity reporter Jordan Robertson has more.

The microchips were reportedly also inserted into computer servers used by 30 American companies including Apple and Amazon, according to quotes from current and former USA officials. "This is untrue", Amazon said in a blog post.

The company refutes the findings of the Bloomberg Businessweek investigation.

The reported manipulation of electronics supply chains to U.S. companies are certain to sharpen long-standing questions about the crucial but uneasy relationship between the world's two leading economies. China manufactures as much as 75 per cent of the world's smartphones and perhaps as much as 90 per cent of the world's personal computers, according to the report.

Bloomberg reports that a San Jose, Calif. -based server supplier called Super Micro Computer Inc., may have exposed hundreds of customers, including Elemental, to an attack that placed tiny unknown chips into servers that could open networks and servers to outside control.

A new report claims that Chinese intelligence added microchips into computers produced in that country.

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According to Bloomberg, Apple first discovered the chips in their servers in May 2015 and quietly reported the issue to the Federal Bureau of Investigation before severing ties with Super Micro the next year.

The company is American, but the motherboards were assembled mainly in China.

The report said that dozens of companies may have used sabotaged servers in their data centers before the Chinese operation was detected.

"On this we can be very clear: Apple has never found malicious chips, "hardware manipulations" or vulnerabilities purposely planted in any server", Apple said in a statement. It too has denied the allegations.

Super Micro told Bloomberg: "While we would cooperate with any government investigation, we are not aware of any investigation regarding this topic nor have we been contacted by any government agency in this regard". "If it is the case, then government procurements from other countries like Europe, the USA and Dubai - Lenovo's servers - will drop substantially because of national security".

Amazon said in a statement that Bloomberg had made so many inaccurate claims, they're "hard to count".

Supermicro could not immediately be reached for comment, but Bloomberg said the firm denied any knowledge of the espionage or investigation.



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