China’s largest chipmaker reportedly supplied chipmaking tools to Iran’s military, a disclosure that threatens to deepen the rift between Washington and Beijing at a critical moment in the U.S.-Iran war.
SMIC sent the tools to Iran’s armed forces, Reuters reported Friday, citing two senior Donald Trump administration officials.
According to the report, the officials did not specify whether the tools were of U.S. origin, which would likely make the shipments a violation of U.S. sanctions.
One official added that the cooperation almost certainly included technical training on semiconductor technology, while another said the tools were provided to Iran’s “military industrial complex” and could be used for any electronics that require chips, according to Reuters.
The White House, the Chinese embassy in Washington and SMIC did not immediately respond to Benzinga‘s request for comment.
SMIC’s History With Washington
SMIC was added to a U.S. trade blacklist in 2020, restricting its access to American exports, and has denied allegations of ties to the Chinese military-industrial complex. The Joe Biden administration tightened those restrictions further in 2024, reportedly cutting off SMIC’s most advanced factory from additional U.S. imports after it produced a sophisticated chip for Huawei’s Mate 60 Pro.
The report comes as President Trump gears up to meet Chinese President Xi Jinping in May.
The allegations threaten to heighten tensions between Washington and Beijing as the U.S. wages war against Tehran and seeks to choke off China’s advanced chip industry. China has not publicly taken a side in the Middle East conflict.
Reuters also reported last month that Iran was close to a deal with China on the purchase of anti-ship cruise missiles, just as the U.S. deployed a vast naval force near the Iranian coast.
Image via Shutterstock
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