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"We have repeatedly and consistently offered factual responses, on the record, refuting virtually every aspect of Bloomberg's story relating to Apple".

Apple said the incident "was determined to be accidental and not a targeted attack".

We are deeply disappointed that in their dealings with us, Bloomberg's reporters have not been open to the possibility that they or their sources might be wrong or misinformed.

Citing 17 anonymous sources, the news outlet on Thursday reported that People's Liberation Army operatives managed to add tiny, nefarious microchips to server motherboards manufactured by Super Micro. The spies' objective was to be able to gain access to "high-value corporate secrets and sensitive government networks", the report said.

Super Micro Computer may have been the prime target in a hack allegedly carried out by the Chinese military.

Super Micro also rejected Bloomberg's reporting.

Apple has vigorously denied an explosive report from Bloomberg Businessweek claiming that Chinese spies infiltrated its supply chain and placed "spy" chips in iCloud servers. "We are not aware of any investigation by the FBI, nor are our contacts in law enforcement".

Super Micro share value

Super Micro, a US-based hardware company, is one of the largest server suppliers in the world, accounting for 5.1% of the worldwide server shipments made in Q3 2017.

The company also noted that it does not design or manufacture networking chips and associated software used in its hardware, saying it procured them from leading networking companies. Amazon said: "It's untrue that AWS [Amazon Web Services] knew about a supply chain compromise, an issue with malicious chips, or hardware modifications when acquiring Elemental". After spotting tiny chips on the servers' motherboards that were not part of the original design, Amazon reportedly showed its findings to USA authorities, "sending a shudder through the intelligence community".

The article - which the companies vigorously denied - detailed a sweeping years-long effort to install the surveillance chips in servers whose motherboards - the brains of the powerful computers - were assembled in China.

An explosive report in United States publication claims that China is spying on companies like Apple, Amazon and even USA organisations such as Federal Bureau of Investigation through the computers and servers that were made in China.

There have been increased concerns about foreign intelligence agencies infiltrating USA and other companies via so-called "supply chain attacks", particularly from China where multiple global tech firms outsource their manufacturing.

Both Apple and Amazon have denied Bloomberg's report; in a statement to CNBC, Apple suggested that the publication had confused "their story with a previously reported 2016 incident in which we discovered an infected driver on a single Super Micro server in one of our labs". Two prominent U. S. cybersecurity companies warned this week that Chinese hacking activity has surged amid a trade war between Washington and Beijing.

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