Super Micro Computer Denies Malicious Chip Report, Says It Is Conducting Review Anyway



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Super Micro Computer will conduct a review following a report that alleged a rogue chip was installed in its motherboards.

Super Micro Computer will conduct a review following a report that alleged a rogue chip was installed in its motherboards.


Photo:

ritchie b. tongo/European Pressphoto Agency

Super Micro Computer
Inc.


SMCI 4.61%

said in a letter to customers that a media report claiming a malevolent hardware chip was installed in its motherboards is incorrect and that it is conducting a review in light of the story.

“We are confident that a recent article, alleging a malicious hardware chip was implanted during the manufacturing process of our motherboards, is wrong,” the San Jose-based company said in a letter to customers dated Oct. 18 filed with the Securities and Exchange Commission. “From everything we know and have seen, no malicious hardware chip has been implanted during the manufacturing of our motherboards.”

Super Micro added that “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.”

Shares of Super Micro were up 4.2% Monday afternoon.

Bloomberg reported earlier this month that a rogue microchip ended up in Super Micro’s serverboards. The “supply chain attack,” as Bloomberg called it, was carried out by Chinese spies and affected

Apple
Inc.

among a number of companies that worked with Super Micro, the article said.

In an interview with BuzzFeed News, Apple Chief Executive Tim Cook said Bloomberg’s story was wrong and that the news outlet needed to “retract it.”

Andy Jassy, CEO of Amazon Web Services, said in a tweet late Monday morning that Apple’s Mr. Cook was correct and that Bloomberg should retract the story.

Bloomberg reported

Amazon.com
Inc.

alerted authorities that a company it hired to test servers from Elemental Technologies—which it had purchased in 2015—found a microchip not part of the original design. Super Micro made the servers for Elemental, Bloomberg reported.

Bloomberg also said in its story that both Amazon and Apple “disputed summaries” of its story.

A Bloomberg spokeswoman said in an email Monday that 17 different people “confirmed the manipulation of hardware and other elements of the attacks.”

“We stand by our story and are confident in our reporting and sources,” she said.

Write to Allison Prang at [email protected]



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