Shares of Lenovo fell amid rumors about Chinese spy chipsSeptember 29, 2018
Shares of computer manufacturer Lenovo fell by about 20 percent. The reason for this was the Bloomberg Businessweek reports that Chinese intelligence service had penetrated equipment supply chains for nearly 30 US companies, including Apple and Amazon, and could spy on them using miniature chips.
Shares of Chinese computer companies plummeted, led by computer maker Lenovo Group Ltd, which lost more than a fifth of its value. Representatives of the company said that it was not immediately possible to establish the cause of such a fall in shares. It soon became clear that the decline was due to a Bloomberg Businessweek report that many gadgets from technical companies contain malicious spyware chips from Chinese intelligence agents.
Lenovo shares plummeted by 18 percent, while ZTE Corp’s shares fell 11 percent. According to analysts and market participants, investors fear that ordinary consumers and businesses will be reluctant to buy Chinese technological products after the scandal.
SuperMicro is not a Lenovo supplier of any kind and Lenovo takes large-scale measures to protect the integrity of the supply chain, the company said. ZTE declined to comment.
Sources in the US government, called hacking, the investigation of which has not yet been completed and which is not officially reported, the most significant of the known attacks on the supply chain of American companies. According to sources, chips were installed during the manufacturing process in Chinese subcontractor factories by agents of the People’s Liberation Army.
The Chinese Ministry of Foreign Affairs did not respond to a written request for comment. Beijing has previously denied charges of conducting cyber-attacks against Western companies.
It is known that Apple Inc. and Amazon.com Inc., referred to as US companies attacked, refrained from commenting. Super Micro Computer Inc, which was the supplier of server boards containing malicious chips, also did not provide any information on the current situation, as did the Ministry of Foreign Affairs of China. Recall that China supplies to America about 90% of computers and 75% of mobile phones.