Smic, the most important Chinese semiconductor company, has sent microchip manufacturing machinery to the Iranian armed forces. The news comes from two anonymous officials of the Donald Trump administration and seems to suggest direct Chinese involvement in the Persian Gulf war. Officially, however, Beijing has not taken a position, has urged all parties to start peace negotiations as soon as possible, and claims to maintain normal trade relations with Tehran.
THE AMERICAN REVELATIONS
The two American officials revealed to Reuters that Smic began shipping chipmaking machinery to Iran about a year ago and to date “we have no reason to believe that [this trade, ed.] has ceased.” It is “almost certain,” they added, that the trade relationship also includes training for the use of the equipment in question.
It is unclear whether the Smic machinery in question contains U.S. technologies inside.
THE SANCTIONS ON SMIC
The United States placed Smic on a trade “blacklist” in 2020, claiming it has ties to the Chinese military-industrial complex, which the company denies. The restrictions were tightened in 2024 by the Joe Biden administration, which sought to prevent Smic – and more generally the Chinese semiconductor industry – from accessing advanced chipmaking technologies, such as those made by Lam Research, Applied Materials, and Kla.
CHINA’S ROLE IN THE WAR ON IRAN
In addition to supplying microchip manufacturing machinery, it appears that China is also assisting Iran through the sale of anti-ship cruise missiles, as also revealed by Reuters.
It is unclear what contribution Smic’s chipmaking equipment has made to Iran’s military operations. According to officials from the Trump administration, they could have been used in any electronic device containing microchips.
