WASHINGTON: The United States has alleged that Semiconductor Manufacturing International Corporation, largest semiconductor manufacturer of China, supplied chip making tools to Iran military, raising fresh concerns over Beijing’s role in the ongoing Middle East conflict.
Read More: AI chip demand to drive up gadget prices in 2026
According to two senior officials from the administration of Donald Trump, the shipments began around a year ago and may still be ongoing. One official said the cooperation likely extended beyond equipment to include technical training in semiconductor technology, potentially strengthening Iran’s military capabilities.
Exclusive: SMIC, China’s largest chipmaker, has sent chipmaking tools to Iran’s military, two senior Trump administration officials said, raising questions about Beijing’s stance in the month-old US-Israeli conflict with Iran https://t.co/uZFT30KhdD
— Reuters (@Reuters) March 27, 2026
The officials, speaking on condition of anonymity, did not clarify whether the equipment contained US-origin components, which could constitute a violation of existing sanctions. Washington has imposed strict export controls on SMIC over alleged links to China’s military, claims the company has consistently denied.
Neither SMIC nor representatives of the Chinese government or Iran’s mission to the United Nations immediately responded to the allegations. Beijing has maintained that its trade with Tehran remains within the bounds of normal commercial activity.
The claims come amid heightened geopolitical tensions as the US and its allies continue military operations against Iran. Analysts warn that the reported transfers, if confirmed, could escalate friction between Washington and Beijing, particularly as the US intensifies efforts to restrict China’s access to advanced semiconductor technology.
China has so far avoided taking a clear public stance on the conflict. Foreign Minister Wang Yi recently called for renewed diplomatic efforts and urged all parties to pursue peace talks.
Read More: US considers crackdown on memory chip makers in China
The allegations also follow reports that Iran is exploring defence cooperation with China, including potential weapons deals. US officials said the chipmaking tools may have been supplied to Iran’s military-industrial complex, where they could be used in a range of electronic systems.
If substantiated, the development could have significant implications for global security and technology supply chains.