US officials say China’s SMIC supplied chip tools to Iran’s military

Semiconductor Manufacturing International Corporation (SMIC), China’s largest chipmaker, has supplied chipmaking equipment to Iran’s military, according to two senior officials in the administration of Donald Trump, raising fresh questions about Beijing’s position amid the ongoing US-Israeli conflict with Iran.

The officials, speaking on condition of anonymity to discuss previously undisclosed US government information, said SMIC began sending the equipment to Iran roughly a year ago and that “we have no reason to believe that any of this has stopped.” One of the officials added that the cooperation “almost certainly included technical training on SMIC’s semiconductor technology.”

It remains unclear whether the equipment involved US-origin components, which would likely make such transfers a violation of US sanctions.

SMIC, the Chinese Embassy in Washington, and a spokesperson for Iran’s mission to the United Nations did not immediately respond to requests for comment.

The Chinese government has maintained that its trade with Iran is normal commercial activity. SMIC, which was placed on a US trade blacklist in 2020 over alleged links to the Chinese military, has consistently denied ties to the military-industrial complex.

Beijing has not publicly aligned itself with any side in the Middle East conflict. Earlier this week, Chinese Foreign Minister Wang Yi called on all parties to seize opportunities to begin peace negotiations as soon as possible.

The allegations risk further escalating tensions between Washington and Beijing, particularly as the United States continues its military campaign against Tehran and intensifies efforts to restrict China’s access to advanced semiconductor technology.

According to a previous Reuters report, Iran was close to finalizing a deal with China to purchase anti-ship cruise missiles, at a time when the United States had deployed significant naval forces near Iran’s coastline ahead of strikes on the country.

It is not immediately clear what role, if any, the chipmaking equipment has played in Iran’s response to the conflict, which began on February 28 and has disrupted global financial markets, driven up oil prices and heightened concerns over inflation worldwide.

One of the officials said the equipment had been provided to Iran’s “military industrial complex” and could potentially be used in any electronic systems requiring semiconductors.

Washington has long sought to limit China’s ability to produce advanced chips, imposing sanctions on SMIC and other Chinese firms to restrict their access to high-end manufacturing tools from major US suppliers such as Lam Research, KLA and Applied Materials.

Restrictions were further tightened under the administration of Joe Biden in 2024, when the most advanced SMIC fabrication facility was cut off from additional US imports after it produced a sophisticated semiconductor for Huawei’s Mate 60 Pro smartphone, according to Reuters.

By Tamilla Hasanova