Tuesday, 02 January 2024 12:17 GMT

U.S. Alleges China's SMIC Secretly Supplied Iran with Chipmaking Tools


(MENAFN) China's largest semiconductor manufacturer, SMIC, has been covertly supplying chipmaking equipment to Iran's military, two senior Trump administration officials have alleged — casting a sharp spotlight on Beijing's deepening involvement as the US-Israeli conflict with Iran enters its second month.

The officials, speaking on condition of anonymity to discuss previously classified US government information, said the transfers began nearly a year ago and expressed confidence the shipments are ongoing, stating they have "no reason to believe that any of this has stopped." The equipment, they added, is versatile enough to support the production of any electronics requiring semiconductors.

Beyond the hardware, the arrangement "almost certainly included technical training on SMIC's semiconductor technology," according to media.

SMIC — already operating under US sanctions over alleged ties to China's military apparatus and placed on Washington's trade blacklist in 2020, which severely restricted its access to American technology exports — has repeatedly denied any connection to China's defense sector. The company did not respond to a request for comment on the latest allegations.

The Chinese Embassy in Washington also declined to comment. Beijing has maintained its standard position that trade conducted with Tehran constitutes legitimate commercial activity.

Notably, the officials stopped short of confirming whether the transferred tools were of American origin — a detail that could carry significant legal and diplomatic consequences given existing export control frameworks.

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