China Secretly Supplies Advanced Chip-Making Equipment to Iran, America Speaks Out
Jakarta, CNBC Indonesia - China is claimed to be secretly supplying advanced chip-making equipment to Iran’s military. This was revealed by two US government officials on Thursday (26/3) local time.
The report raises questions about China’s role in the ongoing war between the US-Israel alliance and Iran. The Chinese supplier of advanced chip-making equipment in question is SMIC.
SMIC is China’s most renowned chip producer. The giant has also faced repeated sanctions from the US government over alleged ties to the US military.
In the latest report cited from Reuters on Friday (27/3/2026), SMIC is said to have begun shipping chip-making tools to Iran around a year ago. US government officials stated that the tool shipment practice is likely still ongoing to this day.
US officials added that the collaboration between SMIC and Iran’s military is also suspected to include technical training for SMIC’s semiconductor technology.
The US officials who provided information to Reuters requested anonymity. They did not specify whether the equipment originated from the US, which would likely make shipments to Iran a violation of US sanctions.
SMIC, the Chinese Embassy in Washington, and a spokesperson for Iran’s mission to the UN did not immediately respond to Reuters’ requests for comment.
The Chinese government has previously emphasised that it conducts normal commercial trade with Iran. SMIC, which was added to the US trade blacklist in 2020 restricting its access to US exports, has denied allegations of ties to China’s military-industrial complex.
China has not formally announced its alignment in the Middle East conflict. This week, Chinese Foreign Minister Wang Yi urged all involved parties to seize the opportunity to initiate peace talks as soon as possible.
The latest accusations regarding SMIC’s involvement with Iran’s military threaten to heighten tensions between Washington and Beijing as the US wages war against Tehran and seeks to choke China’s advanced chip industry.
Reuters reported last month that Iran was close to finalising a deal with China for the purchase of anti-ship cruise missiles, just as the US deployed a large naval force near Iran’s coast ahead of an attack on the country.
It remains unclear what role the Chinese chip-making equipment plays in Iran’s response to the war launched by the US and Israel on 28 February. This war has shaken financial markets, triggered a surge in oil prices, and sparked global inflation concerns.
One official stated that the equipment has been provided to Iran’s “military-industrial complex” and could be used for any electronics requiring chips.
Washington has sought to limit China’s ability to produce advanced semiconductors through sanctions on SMIC and other Chinese chipmakers, aiming to restrict their access to cutting-edge chip-making equipment from leading US suppliers such as Lam Research, KLA, and Applied Materials.
Sanctions against SMIC began under the Biden administration in 2024. The Biden administration cut off SMIC’s most advanced factories from US imports after they produced advanced chips for the Huawei Mate 60 Pro phone, as reported by Reuters.