Bloomberg report says China Military intelligence planted tiny chips on motherboards used by Apple and Amazon

06 Oct 2018_campuscad

Bloomberg report

Bloomberg report published on on Thursday 4, 2018 claiming, china planted the microchips on the motherboards used by US tech companies and Government agencies including Apple and Amazon Inc.

Chips are as small as pencil tip and located on the motherboards which may looks like semiconductor or capacitors in the first place. But the chips have capacity to transmit the data or hardware malfunction and Bloomberg report claimed, Chinese government used the chips to collect the trade secret and import secret of US tech companies and the data will be used for international competition and china’s expansion to new markets.

Several US tech companies are having servers located in china as well to comply with Chinese government policies to protect the privacy of Chinese citizens or internet users.

US tech companies along with other major tech giants around the world uses motherboards manufactured by “Supermicro Computer” in china. China’s low cost manufacturing and strong supply chain from Shenzhen to shanghai gives advantage to Chinese manufacturers to lead the tech and hardware business.

Apple manufacture the Iphone in China with the help of Foxconn cost them only 30% of the market price. Apple CEO Time Cook recently praised the Chinese education and there proficiency in tooling industry.

Iphone maker purchased more than 30 Supermicro servers to avoid any suspicious and spying activity on its data and now operate themselves. Amazon Web service acquired the Elemental technologies in 2015 which provides the video compression, but later detected chips on its 7000 servers. Amazon sold Its AWS hardware business to local competitor in china in 2017.

Apple, Amazon and Supermicro denied the claims from Bloomberg report and experts says it may be due to stock prices, They will be go down if tech companies admit such theories.

Apple said: “On this we can be very clear: Apple has never found malicious chips, ‘hardware manipulations’ or vulnerabilities purposely planted in any server.”

Lenovo and ZTE Corp down 30% after opening the market on October 5, 2018 at Hong Kong Stock Exchange.

US and China already in cold war of tariffs on goods imported to the countries and US wants to break down supply chain economy of china. China GDP will be going to take over US in upcoming years and to halt the Chinese dominance in tech and economy US is continuously imposing the new tariffs on Chinese Goods. (2 different Internets in the world by 2030)

US fined more than $1 billion to ZTE Corporation and want to prevent to us of its 5G services and modems and technology in the US amid national security concerns. Broadcom and Qualcomm merger has been prevented by US regulators.

It will be good to see in future how US will retaliate such supply chain attacks by China and Trump Made in America agenda.

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