Fearing that China can be snooping on them using plugs and power cords, several US technology firms have questioned their Taiwanese providers to move production of some mechanisms out of China, Nikkei Asian Review stated. The report quoted unnamed officials from two Taiwanese firms: Quanta Computer (a provider of data centers, servers) and Lite-On Technology (a producer of electronic parts). Lite-On’s customers comprise Hewlett-Packard, Dell EMC, and IBM, whereas, Quanta has Google and Facebook amongst its customers, as per to Nikkei Asian Review. The officials told Nikkei Asian Review that some of their US clients—without agreeing on which firms—asked them to shift out of China partly due to cybersecurity and cyberespionage risks. The U.S. technology companies were worried that even ordinary components like power plugs can be tapped by China to access delicate data, as per to the report.
Nikkei Asian Review reported that Lite-On is spending around $323.52 Million (10 Billion new Taiwan dollars) to construct a new facility in southern Taiwan. Quanta has moved production out of China to Taiwan and other abroad locations not only owing to cybersecurity fears but also to avoid additional tariffs enforced by Washington as a consequence of the U.S.-China trade spat, as per to the report. Bloomberg BusinessWeek reported in the last year that the Chinese administration has hacked into the production process of data centers and fixed tiny microchips into the apparatus. The data centers were allegedly utilized by Apple and Amazon Web Services. Apple, Amazon, and Beijing have all unclear the Bloomberg report.
On a similar note, recently, Beijing supported Huawei’s charge against the U.S. government and stated that “justice will have its day.” China’s administration voiced its backing for Huawei’s legal challenge opposing the U.S., stating the technology company has the right to refuse to be “mistreated like silent lambs.”