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Bloomberg Face More Strife Over “Fake News” Spying Story, Apple Not Happy

Bloomberg are facing the real threat of legal action, after being slammed by Apple boss Tim Cook and now Chinese Super Micro Computer Company who they accused of retrofitting spy chips ‘not much bigger than a grain of rice’ onto its motherboards.

In a letter sent to their Australian customers the Company categorically denies the claims with one executive telling ChannelNews that Bloomberg has not produced “one piece of hardware evidence” to back up their claims and thet their recent story was “fake news”.

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Bloomberg claimed Chinese spies had placed computer chips inside equipment used by Apple, Amazon and other entities and that this was a real risk for businesses who engaged with the Chinese Company.

‘We are confident that a recent article, alleging a malicious hardware chip was implanted during the manufacturing process of our motherboards, is wrong,’ Super Micro said in the letter.

‘From everything we know and have seen, no malicious hardware chip has been implanted during the manufacturing of our motherboards.

‘Despite the lack of any proof that a malicious hardware chip exists, we are undertaking a complicated and time-consuming review to further address the article,’ the chipmaker added.

Super Micro also called Bloomberg’s claims of it retrofitting spy chips ‘not much bigger than a grain of rice’ onto its motherboards ‘practically impossible.’

Bloomberg claim that they conducted a 12-month investigation and had identified 17 unidentified sources from intelligence agencies and businesses that claimed Chinese spies had placed computer chips inside equipment used by about 30 companies, including Apple and Amazon and multiple US government agencies.

In doing so, they alleged it would give Beijing secret access to internal networks.

‘There is no truth in their story about Apple,’ Cook told BuzzFeed in a phone interview.

‘They need to do the right thing and retract it.’

Cook went on to argue that the reporters provided Apple with little evidence to support their claims.
Bloomberg claimed the processors were designed by spies from China’s People Liberation Army, according to US government officials cited by the Bloomberg report.

Once complete, the spies approached factory managers at the four subcontractors hired by Supermicro to manufacture servers.

They bullied them into incorporating the chips onto the motherboards by bribing them and threatening to shut down the factories, it is claimed, all the while posing as Supermicro designers or Chinese government officials.

Once the chips were loaded onto the motherboards, they were included in the servers and sent to Supermicro’s customers.

When the server was switched on, the chips were activated.

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