An alleged surveillance into data center equipment manufacturing at Amazon and Apple revealed that there were Chinese microchips inserted into it.
According to Bloomberg, the chip classified to be a ‘spy chip’ and was allegedly used to gather trade secrets and intellectual property from both Apple and Amazon Web Services
According to the report the chips were found in servers assembled by a Chinese company called Super Micro, and could have been subject to a secret US government investigation that began in 2015.
Bloomberg’s stories report that Apple, Super Micro and the Chinese authorities disputes the report Bloomberg published as it cites anonymous corporate and government sources
Bloomberg also states that the report was generated was made against a backdrop of growing concern over potential surveillance and security issues in Chinese-made equipment that has hindered the country’s bid to become a global technology powerhouse.
Shares of Super Micro plummeted more than 40 percent following the report.
Apple shares edged 1 percent lower in Thursday trading, while Amazon fell about 1.5 percent.
Apple in a statement to the press said “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.”
While Amazon Web Services said “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’s Ministry of Foreign Affairs defended the allegations and stated that “China is a resolute defender of cybersecurity.”