Apple and Amazon deny existence of Chinese spy chip

Chinese spying microchips found in Apple, Amazon computers: report

Is it Bloomberg and its 17 sources or is it Amazon, Apple, Supermicro, and Beijing? Apple said in a statement that "we have found absolutely no evidence to support any of" the allegations by Bloomberg Businessweek.

Many more details are in Bloomberg's report.

Chinese spies were able to add small, undocumented chips to motherboards in data servers bought by big U.S. tech companies, according to a blockbuster investigation by Bloomberg published Thursday.

The Chinese government has denied allegations of state-sponsored hacking of USA companies. Apple removed all Super Micro servers from its data centers in 2016.

The full statement, which is available here, added that Apple always inspects its servers before they are put into production and if it found anything suspicious, it would have alerted the authorities. A chip can also steal encryption keys for secure communications, block security updates that would neutralize the attack, and open up new pathways to the internet.

"But I will say the Chinese efforts to threaten us in cyberspace and across the information technology spectrum are a very high priority for us - countering them, establishing structures of deterrence to prevent China from even thinking about doing it, touches on the offensive cyber operations that the president has authorized", Bolton said.

On Thursday, Bloomberg published a blockbuster investigation that found that Chinese spies were able to plant tiny microchips on motherboards in data servers bought by American tech giants including Amazon and Apple.

Apple and Amazon deny the reports. Bloomberg reported that servers from Supermicro, the same company that produced the motherboards that allegedly contained extra microchips, had been purchased in the thousands by companies like Apple for years.

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"As we shared with Bloomberg BusinessWeek multiple times over the last couple months, this is untrue", Amazon said in a statement, which you can read here.

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

SuperMicro latter said it has "never found any malicious chips, nor been informed by any customer that such chips have been found..." Apple never had any contact with the Federal Bureau of Investigation or any other agency about such an incident. The company's name was later changed to AWS Elemental.

The company refutes the findings of the Bloomberg Businessweek investigation.

While the companies disputed the facts in the story, security experts noted that there is growing concern that hackers could launch cyber attacks by inserting malicious chips into hardware sold to government agencies and businesses.

The reported manipulation of electronics supply chains to United States companies are certain to sharpen long-standing questions about the crucial but uneasy relationship between the world's two leading economies.

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