US tech firms fear China could be spying on them using power cords, report says

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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.

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.

Lite-On and Quanta did not immediately respond to CNBC’s requests for comment.

Source: CNBC

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