SMIC, China’s largest chipmaker, has supplied chipmaking tools to Iran’s military, two senior officials in the Trump administration said on Thursday, raising questions about Beijing’s position in the ongoing U.S.-Israeli conflict with Iran.
SMIC, which has been heavily sanctioned by the U.S. government over alleged ties to the Chinese military, began sending the tools to Iran roughly a year ago and “we have no reason to believe that any of this has stopped,” one of the officials said.
The official added that the collaboration “almost certainly included technical training on SMIC’s semiconductor technology.”
The Chinese government maintains that it carries out normal commercial trade with Iran. SMIC, which was added to a trade blacklist in 2020 that restricts its access to U.S. exports, has denied allegations that it has ties to the Chinese military-industrial complex.
Ongoing Support and Technical Assistance
China has not publicly taken a side in the Middle East conflict. Chinese Foreign Minister Wang Yi this week called on the parties to seize all opportunities to start peace talks as soon as possible.
The allegations threaten to heighten tensions between Washington and Beijing as the U.S. wages war against Tehran and as it has sought to choke off China’s advanced chip industry.
Reuters reported last month that Iran was close to a deal with China on the purchase of anti‑ship cruise missiles, just as U.S. deployed a vast naval force near the Iranian coast ahead of strikes on the Islamic Republic.
Allegations of SMIC-Iran Links
One of the officials said the tools have been provided to Iran’s “military industrial complex” and could be used for any electronics that require chips.
Washington has sought to curtail China’s ability to make advanced semiconductors through sanctions on SMIC and other Chinese chipmakers, aiming to limit their access to advanced chipmaking equipment from top U.S. suppliers such as Lam Research, KLA and Applied Materials.
The Biden administration tightened restrictions on SMIC in 2024 by cutting off its most advanced factory from more U.S. imports after it produced a sophisticated chip for Huawei’s Mate 60 Pro phone, Reuters reported.
(With inputs from Reuters)
