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Chinese subsidiaries of US chip firm face sanctions over Iran ties

The US government has sanctioned over two dozen companies in China, Turkey, and the United Arab Emirates, including subsidiaries of US chip distributor Arrow Electronics, for allegedly supplying technology to Iran’s military or its proxies.

The Commerce Department added 26 entities and three addresses to its entity list, which blocks US vendors from selling to them without government approval.

Arrow Electronics’ subsidiaries in China and Hong Kong were named for facilitating purchases of US technology by Iranian proxy groups, based on findings from recovered drone wreckage in the Gulf and Middle East since 2017.

Arrow said its subsidiaries comply with US export regulations and are in discussions with the Commerce Department.

Authorities said US-made components were found in unmanned aircraft systems used by Iranian proxies, as well as in drones operated by Hamas and recovered by Israeli forces after the October 7, 2023, attack.

US firms are advised to expect export requests involving these companies to be denied due to national security concerns.

🔗 Source: Bloomberg

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