China’s SMIC supplied chipmaking tech to Iran military: US officials

US officials said Semiconductor Manufacturing International Corporation (SMIC), China’s largest chipmaker, has supplied chipmaking tools to Iran’s military, raising new questions about Beijing’s stance as the US and Israel fight Iran.

Two senior Trump administration officials said SMIC began sending the tools around a year ago, and they had no reason to believe the shipments have stopped, adding the work likely included technical training.

The officials did not say whether the tools were of US origin, which could breach US sanctions.

SMIC was added to a US trade blacklist in 2020, and US restrictions were tightened in 2024 after it made an advanced chip for Huawei’s Mate 60 Pro phone.

SMIC, China’s embassy in Washington, and Iran’s UN mission did not immediately respond to requests for comment.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

This transfer follows a familiar sanctions-evasion playbook

The reported technology transfer from Semiconductor Manufacturing International Corporation (SMIC) to Iran’s military fits a wider pattern among states that try to skirt Western sanctions. The Atlantic Council calls this an “Axis of Evasion” 1.
Within that model, China can help Iran reach military and commercial (“dual-use”) technology through middlemen and connected supply chains that move controlled parts toward Iran 1.
Conflict Armament Research (a UK-based group that tracks weapons and components used in conflicts) found over 80% of the technological devices in four Iranian-made drones came from U.S. companies. Procurement networks can send Western parts through third countries, sometimes using Chinese intermediaries 2.
Separately, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), which enforces U.S. export controls, ordered Applied Materials to pay a $252 million civil penalty. The settlement covered allegations that it shipped semiconductor manufacturing equipment to SMIC subsidiaries after SMIC went on the U.S. Entity List (a U.S. trade blacklist) 3.

This could raise conflict-driven supply-chain risks, though the link stays indirect

U.S. military systems depend on semiconductors. Some U.S. defense platforms, including the F-35 fighter jet, use chips made by Taiwan Semiconductor Manufacturing Co. (TSMC) 4.
Shipping disruption from Middle East tensions could squeeze supplies of industrial gases and petrochemicals. Many of those inputs pass through maritime chokepoints like the Strait of Hormuz 5.
Helium stands out because chipmaking uses it in several processes. Around 38% of global helium production comes from Qatar, which raises concentration risk during regional disruption 5.
Those pressures could fuel demands for stricter export-control enforcement. Western tech companies could also face more compliance scrutiny to reduce diversion to adversaries 2.