US Tech Firms Fear China Could Be Spying On Them Using Power Cords, Report Says

An anonymous reader quotes a report from CNBC: Fearing that China could be spying on them using power cords and plugs, several U.S. technology companies have asked their Taiwanese suppliers to shift production of some components out of the mainland, Nikkei Asian Review reported on Friday. The report cited unnamed executives from two Taiwanese companies: Lite-On Technology, a manufacturer of electronic parts, and Quanta Computer, a supplier of servers and data centers. Lite-On's clients include Dell EMC, Hewlett-Packard and IBM, while Quanta counts Google and Facebook among its customers, according to Nikkei. The executives told Nikkei that some of their American clients -- without specifying which companies -- asked them to move out of China partly because of cyberespionage and cybersecurity risks. The U.S. tech firms were worried that even mundane components such as power plugs could be tapped by Beijing to access sensitive data, according to the report. According to the report, Lite-On Technology is building a new factory in Taiwan to manufacture power components for servers due to China's cybersecurity concerns. Quanta has also shifted production out of mainland China to Taiwan due to similar concerns, as well as additional tariffs imposed by Washington as a result of the U.S.-China trade war.

Read more of this story at Slashdot.