*By Kavitha Shastry* Apple and Amazon denied a report Thursday morning that Chinese spies were able to infiltrate their equipment and gain access to proprietary information and trade secrets. According to [Bloomberg](https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies?srnd=premium), microchips were installed in data center machines during manufacturing. As many as 30 companies, including government contractors and a major bank, were affected. The chips, from Chinese company Super Micro, have reportedly been under investigation by the U.S. since 2015. Amazon ($AMZN) and Apple ($AAPL) allegedly alerted authorities when they found errant hardware at the time, though in statements to multiple outlets, both tech companies denied they found any malicious chips. In a statement to Bloomberg, Amazon said, "We've found no evidence to support claims of malicious chips or hardware modifications." Apple, meanwhile, said, "We are deeply disappointed that...Bloomberg's reporters have not been open to the possibility that 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 consumer data was not compromised, the incident would be one of the biggest examples of corporate espionage to date and further exacerbates the already fragile tensions between the U.S. and China. Last year the Trump administration blocked a takeover of Lattice Semiconductor ($LSCC) by China-backed private equity firm Canyon Bridge Capital over fears of the influence the foreign government might be able to wield over the chip maker. A $117 billion takeover of Qualcomm ($QCOM) by Singapore's Broadcom ($AVGO) was scuttled because of concerns the resulting company would be too dependent on Chinese smartphone maker Huawei. And just this week the U.S. Commerce Department extended a monitoring period on telecom company ZTE for two years. That company has been under probation for violating sanctions against Iran since May 2017. Super Micro ($SCMI), though based in San Jose, Calif., makes most of its motherboards in China. It also denied its products had been compromised, saying in a statement to Bloomberg, “We remain unaware of any such investigation.” It's not the first time the company has come under fire this year ー shares were suspended from trading on the Nasdaq in August for failing to meet quarterly reporting deadlines.

Share:
More In Business
Al Sharpton to lead pro-DEI march through Wall Street
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
A US tariff exemption for small orders ends Friday. It’s a big deal.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines’ new policy will affect plus-size travelers. Here’s how
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Load More