China says its trade with Iran is part of normal commercial activity.
WASHINGTON: SMIC, China’s largest chipmaker, has allegedly supplied chipmaking equipment to Iran’s military, according to two senior US officials, raising fresh concerns about Beijing’s position in the ongoing US-Israeli conflict with Tehran.
SMIC, China’s largest chipmaker, which has faced heavy US sanctions over alleged links to the Chinese military, reportedly began sending chipmaking tools to Iran about a year ago, and “we have no reason to believe that any of this has stopped,” one senior official said.
The official added that the collaboration “almost certainly included technical training on SMIC’s semiconductor technology.”
The information was shared anonymously, as the officials discussed previously undisclosed US government details. They did not clarify whether the tools were of US origin, which could make their shipment to Iran a potential violation of US sanctions.
Requests for comment to SMIC, the Chinese Embassy in Washington, and a spokesperson for Iran’s mission to the United Nations went unanswered.
China maintains that its trade with Iran is normal commercial activity. SMIC, blacklisted in 2020 restricting its access to US exports, has denied any connections to the Chinese military-industrial complex.
So far, China has not publicly taken a side in the Middle East conflict. Chinese Foreign Minister Wang Yi urged all parties this week to seize opportunities to begin peace talks as soon as possible.
The allegations could further strain US-China relations as Washington continues its conflict with Tehran while also targeting China’s advanced chip industry.
Last month, Reuters reported that Iran was nearing a deal with China to purchase anti-ship cruise missiles, coinciding with a massive US naval deployment near the Iranian coast ahead of strikes on the Islamic Republic.
It remains unclear what role, if any, the chipmaking tools have played in Iran’s response to the war, launched by the US and Israel on February 28, which has disrupted financial markets, driven up oil prices, and heightened global inflation concerns.
One official said the tools were supplied to Iran’s “military-industrial complex” and could be used in any electronics requiring semiconductors.
Washington has sought to restrict China’s ability to produce advanced semiconductors by sanctioning SMIC and other Chinese chipmakers, aiming to block their access to cutting-edge chipmaking equipment from leading US suppliers such as Lam Research, KLA, and Applied Materials.
In 2024, the Biden administration further tightened restrictions on SMIC, blocking its most advanced factory from receiving additional US imports after the company produced a high-end chip for Huawei’s Mate 60 Pro smartphone, Reuters reported.
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