Two of the world’s biggest personal computer chip makers have been quizzed about their ties to countries which are suspected of sponsoring terrorism.

In May, the SEC sent a letter to chipmaker AMD asking the company about its dealings with countries such as Syria, Iran, and Sudan, the Wall Street Journal reported on August 12. The US securities watchdog asked the Santa-Clara, California firm about whether it was aware of a 2007 news report about how its processors had been used to build supercomputers in Iran.

In a separate filing, the watchdog also asked AMD’s rival Intel, about its ties with countries to which the US has in place a trade embargo, including Cuba. This inquiry was apparently based on a recent 10-k filing that the company had made concerning its Middle-Eastern business operations, as well as news reports that its processors were used in Cuban personal computers.

The two companies have responded by saying that they each comply with US trade laws and prohibit any business ties with countries under US embargo.

AMD also said it did not have further information on the reasons behind the SEC’s inquiries. “We have fully cooperated with the SEC’s request, and we are fully committed to compliance with US export control laws,” said spokeswoman Brenda Rarick.

The SEC did not have any further comment, according to the WSJ report.

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The US Securities and Exchange Commission has made a series of changes to the way it does business, as it struggles to remake itself under the watchful direction of its chairman Mary Schapiro.

Among the many measures that have recently been put in place at the embattled watchdog, which has been under heavy fire for missing the massive fraud pulled off by Wall Street swindler Bernard Madoff, the SEC staff is undertaking a "targeted" review of older cases or those without much activity. "Cases worthy of continued investigation will remain open and active. Some will be closed," said Robert Khuzami, who was appointed earlier this year as the commission’s director of enforcement.

One such example involved the settlement of a case focused on the hedge fund Perry Corp, over the timeliness of its 2004 disclosures concerning its ownership of a pharmaceutical company before a takeover vote. The case had been in limbo for years, before Perry agreed to pay US$150,000 to settle the case. As part of the settlement, they neither admitted nor denied wrong-doing.

The commission also recently began cracking down on a practice termed as “naked short selling”, which has been blamed for plunging stock prices. In May, the agency also brought its first case alleging insider trading using credit-default swaps.

The SEC has also shown greater eagerness to go after individuals and companies. Among the settlements brought against big-name corporations in the past month include Bank of America, which was fined US$33 million, General Electric for US$50 million, and former American International Group chairman Maurice “Hank” Greenberg, who had to pay US$7.5 million in fines. Mr Greenberg also had to return US$7.5 million in alleged improper gains.

It is also seeking to speed up the investigation of cases with tactics such as looking for ways to grant cooperation points to individuals who help authorities uncover wrong-doing. There has also been a relaxation in the rule that required the five-member leadership of the SEC to approve formal orders of investigation.

This authority will be delegated to Mr Khuzami, the recently appointed director of enforcement. This in turn will be passed on to Mr Khuzami’s senior staff attorneys. Finally, the SEC is expected to be less open to granting extensions to respond to Wells notices, which are letters sent to companies and individuals being investigated.

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