SoftBank unit marks Japan’s largest-ever IPO, but sinks more than 14 percent

SoftBank will be replacing its Huawei hardware in its 4G network infrastructure over the next few years and using equipment from Ericsson and Nokia instead, according to Japan’s Nikkei Asian Review. It is also expected to place orders with the two European companies for its 5G networks, the Nikkei reported. Sprint’s prospective $26 billion merger with Deutsche Telekom-owned T-Mobile U.S., meanwhile, was approved by the U.S. government on Monday after SoftBank and the German company said they wou


SoftBank will be replacing its Huawei hardware in its 4G network infrastructure over the next few years and using equipment from Ericsson and Nokia instead, according to Japan’s Nikkei Asian Review. It is also expected to place orders with the two European companies for its 5G networks, the Nikkei reported. Sprint’s prospective $26 billion merger with Deutsche Telekom-owned T-Mobile U.S., meanwhile, was approved by the U.S. government on Monday after SoftBank and the German company said they wou
SoftBank unit marks Japan’s largest-ever IPO, but sinks more than 14 percent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-19  Authors: kelly olsen, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, transformation, 14, using, tokyo, vision, think, largestever, unit, softbank, japans, fund, technology, ipo, marks, equipment, capital, sinks


SoftBank unit marks Japan's largest-ever IPO, but sinks more than 14 percent

SoftBank will be replacing its Huawei hardware in its 4G network infrastructure over the next few years and using equipment from Ericsson and Nokia instead, according to Japan’s Nikkei Asian Review. It is also expected to place orders with the two European companies for its 5G networks, the Nikkei reported.

Sprint’s prospective $26 billion merger with Deutsche Telekom-owned T-Mobile U.S., meanwhile, was approved by the U.S. government on Monday after SoftBank and the German company said they would stop using Huawei’s equipment, Reuters reported.

Mark Einstein, chief analyst for telecommunications and digital services at ITR Corporation in Tokyo, said he was not surprised by SoftBank’s share price drop given the challenges faced by both the company and the Japanese telecommunications market more broadly.

He listed those as government pressure to cut costs, expenses related to next year’s 5G roll out in the country, Rakuten’s entry to the market and higher capital expenditures resulting from Chinese equipment being shut out.

“So I think for SoftBank’s bottom line it means that they’re going to be forced to use European and American equipment, which is going to be more expensive,” he said on CNBC’s “Capital Connection.”

The listing on the Tokyo Stock Exchange also comes as Son, one of the tech world’s most powerful people, makes waves with his $100 billion Vision Fund, and marks the transformation of the group from a mobile carrier to a global investment fund.

“He’s trying to court a new type of investor that actually shares his vision in the outlook for (Internet of Things technology), for robotics and most importantly artificial intelligence,” Chris Lane, senior researcher at Sanford C. Bermstein, said Wednesday on CNBC’s “Squawk Box” before trading began.

“So this is part of that transformation,” Lane said. “I think it’s a fairly major step in that transformation.”

The fund was established in October 2016 and is aimed at boosting promising businesses in the technology sector.

“IPO proceeds will supplement the holding company’s liquidity, although a large part of proceeds to SoftBank may eventually be used to fund its remaining capital commitments to the SoftBank Vision Fund (SVF), which continues to invest in internet and emerging technology businesses,” Moody’s Investors Service said in a report last month.


Company: cnbc, Activity: cnbc, Date: 2018-12-19  Authors: kelly olsen, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, transformation, 14, using, tokyo, vision, think, largestever, unit, softbank, japans, fund, technology, ipo, marks, equipment, capital, sinks


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Japan’s SoftBank to replace Huawei equipment, Nikkei reports

Japanese mobile carrier SoftBank will be replacing its hardware from Chinese tech giant Huawei in its 4G telecommunications network infrastructure over the next few years — and will instead be using equipment from Ericsson and Nokia, Nikkei Asian Review reported on Thursday. SoftBank is also expected to place orders with the two European companies for its 5G networks, Nikkei reported. SoftBank is the only telecom carrier in Japan that uses Huawei equipment, according to the news outlet. The 5G n


Japanese mobile carrier SoftBank will be replacing its hardware from Chinese tech giant Huawei in its 4G telecommunications network infrastructure over the next few years — and will instead be using equipment from Ericsson and Nokia, Nikkei Asian Review reported on Thursday. SoftBank is also expected to place orders with the two European companies for its 5G networks, Nikkei reported. SoftBank is the only telecom carrier in Japan that uses Huawei equipment, according to the news outlet. The 5G n
Japan’s SoftBank to replace Huawei equipment, Nikkei reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: huileng tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, softbank, replace, reports, japans, network, huawei, telecommunications, using, reported, 5g, nikkei, carrier, equipment


Japan's SoftBank to replace Huawei equipment, Nikkei reports

Japanese mobile carrier SoftBank will be replacing its hardware from Chinese tech giant Huawei in its 4G telecommunications network infrastructure over the next few years — and will instead be using equipment from Ericsson and Nokia, Nikkei Asian Review reported on Thursday.

SoftBank is also expected to place orders with the two European companies for its 5G networks, Nikkei reported. SoftBank is the only telecom carrier in Japan that uses Huawei equipment, according to the news outlet.

The 5G network is the next telecommunications standard that facilitates quicker transfer of data, and allows more devices to connect to the internet.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: huileng tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, softbank, replace, reports, japans, network, huawei, telecommunications, using, reported, 5g, nikkei, carrier, equipment


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Japan’s top three telcos to shun Huawei, ZTE network equipment: Kyodo

Last week sources told Reuters that Japan planned to ban government purchases of equipment from Huawei and ZTE to ensure strength in its defences against intelligence leaks and cyber attacks. A SoftBank Group Corp spokesman said Japan’s third-largest telco was closely watching government policy and is continuing to consider its options. Docomo does not use Huawei or ZTE network equipment, but it has partnered with Huawei on 5G trials. KDDI also does not use Huawei equipment in its “core” network


Last week sources told Reuters that Japan planned to ban government purchases of equipment from Huawei and ZTE to ensure strength in its defences against intelligence leaks and cyber attacks. A SoftBank Group Corp spokesman said Japan’s third-largest telco was closely watching government policy and is continuing to consider its options. Docomo does not use Huawei or ZTE network equipment, but it has partnered with Huawei on 5G trials. KDDI also does not use Huawei equipment in its “core” network
Japan’s top three telcos to shun Huawei, ZTE network equipment: Kyodo Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: johannes eisele, afp, getty images
Keywords: news, cnbc, companies, telcos, shun, softbank, kyodo, does, zte, huawei, japans, network, kddi, japanese, equipment, financial


Japan's top three telcos to shun Huawei, ZTE network equipment: Kyodo

Last week sources told Reuters that Japan planned to ban government purchases of equipment from Huawei and ZTE to ensure strength in its defences against intelligence leaks and cyber attacks.

A SoftBank Group Corp spokesman said Japan’s third-largest telco was closely watching government policy and is continuing to consider its options. The amount of equipment in use from Chinese makers “is relatively small”, he said.

The country’s top two telecommunications operators, NTT Docomo Inc and KDDI Corp, said the firms had not made any decision yet.

Docomo does not use Huawei or ZTE network equipment, but it has partnered with Huawei on 5G trials. KDDI also does not use Huawei equipment in its “core” network, a spokeswoman said, adding it does not use any ZTE network equipment.

Huawei did not respond to Reuters request for comment, while ZTE declined to comment.

Huawei has already been locked out of the U.S. market, and Australia and New Zealand have blocked it from building 5G networks amid concerns of its possible links with China’s government. Huawei has said Beijing has no influence over it.

Japan’s decision to keep it out would be another setback for Huawei, whose chief financial officer was recently arrested by Canadian officials for extradition to the United States.

World financial markets have been roiled since news of the arrest, on worries it could reignite a Sino-U.S. trade row that was only just showing signs of easing.

Shares of SoftBank, which has the deepest relationship with Huawei among the big Japanese telcos, fell the most among the three top Japanese telcos on Monday, ending down 3.5 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: johannes eisele, afp, getty images
Keywords: news, cnbc, companies, telcos, shun, softbank, kyodo, does, zte, huawei, japans, network, kddi, japanese, equipment, financial


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Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues

Technology stocks across the region were under pressure, including many Huawei partners and suppliers. Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. “Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said. ZTE shares listed in Hong Kong were down 5.94 percent on the


Technology stocks across the region were under pressure, including many Huawei partners and suppliers. Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. “Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said. ZTE shares listed in Hong Kong were down 5.94 percent on the
Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: saheli roy choudhury, eustance huang, miguel candela, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, rout, continues, shares, stocks, fell, markets, hits, equipment, technology, major, tech, softbank, represents, selloff, hard, huawei, global, zte


Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues

Technology stocks across the region were under pressure, including many Huawei partners and suppliers.

Chipmaker Samsung tumbled 2.29 percent, Sunny Optical, which makes some of the lenses for Huawei phones, fell 5.47 percent and AAC Technologies declined 5.59 percent on the day. Chinasoft International, where Huawei is a strategic shareholder, dropped 11.71 percent.

Shares of Nikkei heavyweight SoftBank Group fell 4.93 percent. Last year, SoftBank and Huawei jointly demonstrated potential use of the next generation of high-speed mobile internet; SoftBank is taking its mobile unit public on Dec. 19.

The negative sentiment rippled through the broader Japanese tech sector, with shares of Tokyo Electron down 4.54 percent, Advantest falling 5.30 percent and TDK Corp dropping 6.64 percent.

Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. Asia’s Apple suppliers, in general, saw Thursday declines.

Analysts at Jefferies pointed out that Huawei has a major global presence in various technology areas such as telecommunications equipment, semiconductors, smartphones and cloud computing. It also represents a major growth driver for many tech manufacturers.

Huawei’s Meng, who is the daughter of the company’s founder, faces extradition to the U.S., according to Canada’s Department of Justice.

While the arrest represents a new escalation in American efforts to hold Chinese companies accountable for violation of U.S. laws, it is likely to elicit an angry reaction from Beijing, according to Eurasia Group.

“The investigation of Huawei could be a prelude to further action against the firm and its senior officials,” the Eurasia Group analysts said, adding that if the U.S. places a sudden ban on Huawei equipment, like it did with ZTE, the impact would be much greater.

“Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said.

ZTE shares listed in Hong Kong were down 5.94 percent on the day.

Both Huawei and ZTE are restricted from selling telecoms equipment in the U.S. due to what the U.S. describes as national security concerns.


Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: saheli roy choudhury, eustance huang, miguel candela, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, rout, continues, shares, stocks, fell, markets, hits, equipment, technology, major, tech, softbank, represents, selloff, hard, huawei, global, zte


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Huawei blocked from providing core tech to a 5G network in the UK

Chinese tech giant Huawei will be excluded from providing technology for the core 5G network being developed by U.K. telecoms firm BT. While Huawei will not be selected as a vendor for the core 5G network, it will still be eligible to provide some infrastructure support – such as phone mast antennas. “We’re applying these same principles to our current RFP (Request for Proposal) for 5G core infrastructure,” the spokesperson explained. Huawei remains an important equipment provider outside the co


Chinese tech giant Huawei will be excluded from providing technology for the core 5G network being developed by U.K. telecoms firm BT. While Huawei will not be selected as a vendor for the core 5G network, it will still be eligible to provide some infrastructure support – such as phone mast antennas. “We’re applying these same principles to our current RFP (Request for Proposal) for 5G core infrastructure,” the spokesperson explained. Huawei remains an important equipment provider outside the co
Huawei blocked from providing core tech to a 5G network in the UK Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: chloe taylor, jason alden bloomberg via getty images
Keywords: news, cnbc, companies, internet, network, telecoms, spokesperson, providing, provide, uk, blocked, equipment, vendor, core, 5g, tech, huawei


Huawei blocked from providing core tech to a 5G network in the UK

Chinese tech giant Huawei will be excluded from providing technology for the core 5G network being developed by U.K. telecoms firm BT.

The firm’s equipment will also be removed from BT’s existing 3G and 4G networks. While Huawei will not be selected as a vendor for the core 5G network, it will still be eligible to provide some infrastructure support – such as phone mast antennas.

BT acquired telecoms firm EE in 2016 and will use its existing network to launch a national 5G rollout. 5G will provide superfast mobile internet access and is widely expected to revolutionize technologies such as self-driving cars and the internet of things.

In an email sent to CNBC, a BT spokesperson confirmed the process to remove Huawei equipment from the core of its 3G and 4G networks began in 2016. They said this was done as a “part of network architecture principles in place since 2006.”

“We’re applying these same principles to our current RFP (Request for Proposal) for 5G core infrastructure,” the spokesperson explained. “As a result, Huawei have not been included in vendor selection for our 5G core. Huawei remains an important equipment provider outside the core network, and a valued innovation partner.”

EE is currently trialing 5G mobile internet in London’s Canary Wharf.

A Huawei spokesperson was not immediately available for comment when contacted by CNBC.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: chloe taylor, jason alden bloomberg via getty images
Keywords: news, cnbc, companies, internet, network, telecoms, spokesperson, providing, provide, uk, blocked, equipment, vendor, core, 5g, tech, huawei


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US government reportedly asked allies to avoid using equipment manufactured by China’s Huawei

The U.S. government is trying to persuade wireless and internet providers in allied countries to avoid telecommunications equipment from China’s Huawei Technologies, the Wall Street Journal reported on Thursday. U.S. officials have reached out to their government counterparts and telecom executives in friendly countries where Huawei equipment is already in wide use about what they see as cybersecurity risks, according to the WSJ report , which cited unnamed people familiar with the situation. Wa


The U.S. government is trying to persuade wireless and internet providers in allied countries to avoid telecommunications equipment from China’s Huawei Technologies, the Wall Street Journal reported on Thursday. U.S. officials have reached out to their government counterparts and telecom executives in friendly countries where Huawei equipment is already in wide use about what they see as cybersecurity risks, according to the WSJ report , which cited unnamed people familiar with the situation. Wa
US government reportedly asked allies to avoid using equipment manufactured by China’s Huawei Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-22  Authors: qilai shen, bloomberg, getty images
Keywords: news, cnbc, companies, reportedly, allies, wsj, telecom, wide, asked, report, avoid, chinese, huawei, equipment, countries, using, manufactured, chinas, telecommunications, wireless


US government reportedly asked allies to avoid using equipment manufactured by China's Huawei

The U.S. government is trying to persuade wireless and internet providers in allied countries to avoid telecommunications equipment from China’s Huawei Technologies, the Wall Street Journal reported on Thursday.

U.S. officials have reached out to their government counterparts and telecom executives in friendly countries where Huawei equipment is already in wide use about what they see as cybersecurity risks, according to the WSJ report , which cited unnamed people familiar with the situation.

Huawei has come under scrutiny in the United States recently.

Intelligence agency leaders and others have said they are concerned that Huawei and other Chinese companies may be beholden to the Chinese government or ruling Communist Party, raising the risk of espionage.

Washington has been considering increasing financial aid for telecommunications development in countries that shun Chinese-made equipment, the WSJ reported.

One of the government’s concerns is based on the use of Chinese telecom equipment in countries that host U.S. military bases, such as Germany, Italy and Japan, the report added.

Huawei did not immediately respond to a Reuters request for comment.


Company: cnbc, Activity: cnbc, Date: 2018-11-22  Authors: qilai shen, bloomberg, getty images
Keywords: news, cnbc, companies, reportedly, allies, wsj, telecom, wide, asked, report, avoid, chinese, huawei, equipment, countries, using, manufactured, chinas, telecommunications, wireless


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PG&E plunges 25% amid disclosure of an ‘electric incident’ just before wildfire

Shares of utility PG&E fell 25 percent on Wednesday after the company said that if its equipment is responsible for the “Camp Fire” burning in Northern California, the cost of the damage would exceed its insurance coverage and harm its financial health. That would “have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows.” PG&E, owner of Pacific Gas & Electric Co., said its subsidiary has drawn down $3 billion from its c


Shares of utility PG&E fell 25 percent on Wednesday after the company said that if its equipment is responsible for the “Camp Fire” burning in Northern California, the cost of the damage would exceed its insurance coverage and harm its financial health. That would “have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows.” PG&E, owner of Pacific Gas & Electric Co., said its subsidiary has drawn down $3 billion from its c
PG&E plunges 25% amid disclosure of an ‘electric incident’ just before wildfire Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: thomas franck, justin sullivan, getty images
Keywords: news, cnbc, companies, incident, credit, insurance, amid, electric, drawn, liability, pge, 25, utilitys, equipment, liquidity, plunges, wildfire, disclosure, financial, utility


PG&E plunges 25% amid disclosure of an 'electric incident' just before wildfire

Shares of utility PG&E fell 25 percent on Wednesday after the company said that if its equipment is responsible for the “Camp Fire” burning in Northern California, the cost of the damage would exceed its insurance coverage and harm its financial health.

“While the cause of the Camp Fire is still under investigation, if the Utility’s equipment is determined to be the cause, the Utility could be subject to significant liability in excess of insurance coverage,” the company said in a document filed with the Securities and Exchange Commission on Tuesday. That would “have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows.”

PG&E, owner of Pacific Gas & Electric Co., said its subsidiary has drawn down $3 billion from its credit line in anticipation of a fire-related liability. At least 48 people have died in the fire and a record 7,600 homes and other structures have been destroyed, according to official estimates. Hundreds of people remain missing.

“With these borrowings, the entire credit facility has been drawn and PG&E now has $3.5 billion of cash on its balance sheet,” Citi analyst Praful Mehta wrote in a note Wednesday. “We think the primary driver could be a concern around a downgrade to a non-investment grade credit rating and the liquidity requirements as a result of the downgrade.”


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: thomas franck, justin sullivan, getty images
Keywords: news, cnbc, companies, incident, credit, insurance, amid, electric, drawn, liability, pge, 25, utilitys, equipment, liquidity, plunges, wildfire, disclosure, financial, utility


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US factory orders increase more than expected in September

Factory goods orders rose 0.7 percent amid strong demand for transportation equipment, the Commerce Department said on Friday. Data for August was revised up to show factory orders surging 2.6 percent instead of the previously reported 2.3 percent increase. Economists polled by Reuters had forecast factory orders gaining 0.5 percent in September. An Institute for Supply Management survey of manufacturers published on Thursday showed a measure of new factory orders dropping to a 1-1/2-year low in


Factory goods orders rose 0.7 percent amid strong demand for transportation equipment, the Commerce Department said on Friday. Data for August was revised up to show factory orders surging 2.6 percent instead of the previously reported 2.3 percent increase. Economists polled by Reuters had forecast factory orders gaining 0.5 percent in September. An Institute for Supply Management survey of manufacturers published on Thursday showed a measure of new factory orders dropping to a 1-1/2-year low in
US factory orders increase more than expected in September Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-02  Authors: luke sharrett, bloomberg, getty images
Keywords: news, cnbc, companies, goods, increase, spending, reported, capital, increased, equipment, business, orders, transportation, factory, expected


US factory orders increase more than expected in September

New orders for U.S.-made goods increased more than expected in September, but softening business spending on equipment suggested the manufacturing sector could be slowing.

Factory goods orders rose 0.7 percent amid strong demand for transportation equipment, the Commerce Department said on Friday. Data for August was revised up to show factory orders surging 2.6 percent instead of the previously reported 2.3 percent increase.

Economists polled by Reuters had forecast factory orders gaining 0.5 percent in September. Orders increased 8.4 percent on a year-on-year basis in September.

Worker shortages, an increasingly bitter trade war between the United States and China, a strong dollar and slowing global economic growth are restraining momentum in manufacturing, which accounts for about 12 percent of the U.S. economy.

An Institute for Supply Management survey of manufacturers published on Thursday showed a measure of new factory orders dropping to a 1-1/2-year low in October.

In September, orders for transportation equipment increased 1.9 percent, reflecting a 118.7 percent jump in orders for defense aircraft and parts. Transportation equipment orders soared 13.3 percent in August.

Orders for civilian aircraft and parts tumbled 17.5 percent in September. Orders for motor vehicles rose 0.5 percent.

There were increases in orders for primary metals, machinery and computers and electronic products in September. Orders for electronic equipment, appliances and components fell.

The Commerce Department also said September orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans, slipped 0.1 percent as reported last month. Orders for these so-called core capital goods fell 0.2 percent in August.

Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, dipped 0.1 percent in September instead of being unchanged as reported last month.

Core capital goods shipments fell 0.1 percent in August. Business spending on equipment stalled in the third quarter.


Company: cnbc, Activity: cnbc, Date: 2018-11-02  Authors: luke sharrett, bloomberg, getty images
Keywords: news, cnbc, companies, goods, increase, spending, reported, capital, increased, equipment, business, orders, transportation, factory, expected


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Apple suppliers’ shares fall on the back of report alleging hidden Chinese spy chips

Apple suppliers in Asia saw a broad decline on Friday on the back of a bombshell report that alleged Chinese spy chips were discovered in data center equipment used by Amazon and Apple. On Friday in Japan, shares of electronic parts maker TDK dropped by 4.79 percent while component supplier Murata Manufacturing declined by 3.9 percent. Declines were also seen in the Taiwanese markets, where major Apple chipmaker Taiwan Semiconductor fell by 1.57 percent and lens maker Largan Precision dropped by


Apple suppliers in Asia saw a broad decline on Friday on the back of a bombshell report that alleged Chinese spy chips were discovered in data center equipment used by Amazon and Apple. On Friday in Japan, shares of electronic parts maker TDK dropped by 4.79 percent while component supplier Murata Manufacturing declined by 3.9 percent. Declines were also seen in the Taiwanese markets, where major Apple chipmaker Taiwan Semiconductor fell by 1.57 percent and lens maker Largan Precision dropped by
Apple suppliers’ shares fall on the back of report alleging hidden Chinese spy chips Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: eustance huang, maurice tsai, bloomberg, getty images, source
Keywords: news, cnbc, companies, report, shares, chips, alleging, spy, suppliers, micro, amazon, super, apple, equipment, hidden, chinese, fall, used


Apple suppliers' shares fall on the back of report alleging hidden Chinese spy chips

Apple suppliers in Asia saw a broad decline on Friday on the back of a bombshell report that alleged Chinese spy chips were discovered in data center equipment used by Amazon and Apple.

On Friday in Japan, shares of electronic parts maker TDK dropped by 4.79 percent while component supplier Murata Manufacturing declined by 3.9 percent.

Over in South Korea, LG Display fell by 1.84 percent while industry heavyweight Samsung Electronics closed flat despite earlier announcing that its third-quarter operating profit was likely to have risen to a record high.

Declines were also seen in the Taiwanese markets, where major Apple chipmaker Taiwan Semiconductor fell by 1.57 percent and lens maker Largan Precision dropped by 7.28 percent.

The moves in Asia followed a report released on Thursday by Bloomberg BusinessWeek, which alleged that data center equipment employed by Amazon Web Services and Apple could have been vulnerable to spying from the Chinese government as a result of a micro chip being inserted during the equipment manufacturing process.

The chips, which Bloomberg said have been the subject of a top secret U.S. government investigation starting in 2015, were used for gathering intellectual property and trade secrets from American companies and may have been introduced by a Chinese server company called Super Micro that assembled machines used in the centers. Amazon, Apple and Super Micro have disputed the report.

One analyst said, however, that the recent stock moves are unlikely to last long term.

“I think it’s a bit of a knee jerk reaction to the news,” said Leo Sun, a tech and consumer goods specialist at The Motley Fool, adding that the controversy surrounding Super Micro was “only about server chips, not iPhone components.”

Sun also highlighted that Apple’s current suppliers were unlikely to be immediately hurt as the company “ended its relationship with Super Micro back in 2016.”

Sun did, however, add that the report would likely serve as impetus for the American government to “cite this incident to pressure Apple to move its production back to the U.S. and use U.S. components.”

“I doubt Apple will ever comply, since its costs would jump significantly, but it could cause investors to avoid Apple’s Asian suppliers until the matter is resolved,” he said.

— CNBC’s Kate Fazzini contributed to this report.

WATCH:Will Apple replace your family doctor?


Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: eustance huang, maurice tsai, bloomberg, getty images, source
Keywords: news, cnbc, companies, report, shares, chips, alleging, spy, suppliers, micro, amazon, super, apple, equipment, hidden, chinese, fall, used


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Spy chips story, disputed by cloud providers, could stoke growing US tensions over Chinese espionage

A Bloomberg BusinessWeek report that Chinese equipment manufacturer Super Micro may have allowed microchips used for spying into U.S. data center equipment run by AWS, Apple and others is likely to stoke trade tensions between the two nations over alleged espionage. Apple and AWS strongly dispute the Bloomberg report. Just Wednesday, the U.S. Department of Homeland Security urged companies to protect against cyberthreats from their managed service providers. It was the latest warning in a long s


A Bloomberg BusinessWeek report that Chinese equipment manufacturer Super Micro may have allowed microchips used for spying into U.S. data center equipment run by AWS, Apple and others is likely to stoke trade tensions between the two nations over alleged espionage. Apple and AWS strongly dispute the Bloomberg report. Just Wednesday, the U.S. Department of Homeland Security urged companies to protect against cyberthreats from their managed service providers. It was the latest warning in a long s
Spy chips story, disputed by cloud providers, could stoke growing US tensions over Chinese espionage Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-04  Authors: kate fazzini, joshua roberts
Keywords: news, cnbc, companies, chinese, response, espionage, chips, stoke, managed, disputed, service, bloomberg, spy, providers, growing, cloud, tensions, companies, aws, equipment, nationstates


Spy chips story, disputed by cloud providers, could stoke growing US tensions over Chinese espionage

A Bloomberg BusinessWeek report that Chinese equipment manufacturer Super Micro may have allowed microchips used for spying into U.S. data center equipment run by AWS, Apple and others is likely to stoke trade tensions between the two nations over alleged espionage.

Apple and AWS strongly dispute the Bloomberg report.

Just Wednesday, the U.S. Department of Homeland Security urged companies to protect against cyberthreats from their managed service providers. It was the latest warning in a long series of ramped-up concerns over espionage from nation-states involving third-party products and services.

The U.S. Computer Emergency Response Team, which provides disaster response and warnings about serious cybersecurity issues, published an alert that nation-states have been using shared cloud services and managed service providers — like those that provide outsourced handling of corporate functions — to launch advanced attacks and espionage campaigns against critical U.S. companies.


Company: cnbc, Activity: cnbc, Date: 2018-10-04  Authors: kate fazzini, joshua roberts
Keywords: news, cnbc, companies, chinese, response, espionage, chips, stoke, managed, disputed, service, bloomberg, spy, providers, growing, cloud, tensions, companies, aws, equipment, nationstates


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