China's largest chipmaker, Semiconductor Manufacturing International Corp, has sent chipmaking tools and technical training to Iran's military industrial complex, two senior Trump administration officials reportedly told Reuters on Thursday. The transfers reportedly began roughly a year ago and are believed to be ongoing.
The officials, who spoke on condition of anonymity to discuss previously undisclosed U.S. government information, said the collaboration "almost certainly included technical training on SMIC's semiconductor technology." They did not confirm whether the tools were of U.S. origin, which would make shipments to Iran a violation of existing sanctions against SMIC.
One official said the equipment was provided to Iran's "military industrial complex" and could be applied to any electronics that require chips. That broad potential use makes it difficult to trace what role, if any, the tools have played in Iran's response to the conflict launched by the U.S. and Israel on February 28.
The transfers reportedly predate the war by several months, beginning around this time last year. SMIC has operated under a U.S. trade blacklist since 2020, when the Trump administration first restricted its access to American chipmaking equipment over alleged ties to the Chinese military. SMIC has consistently denied those ties.
The Biden administration tightened those restrictions further in 2024, cutting SMIC's most advanced factory from additional U.S. imports after Reuters reported the foundry had produced a sophisticated chip for Huawei's Mate 60 Pro smartphone in late 2023. That chip, built on SMIC's second-generation 7nm-class process, raised fresh concerns about the enforcement of the Foreign Direct Product Rule, which bars the use of U.S. technology to manufacture chips for blacklisted entities.
SMIC has since come under additional pressure from Taiwan, which added both SMIC and Huawei to its strategic high-tech commodities entity list in June 2025, restricting their access to Taiwanese-manufactured components.
The Chinese government has maintained publicly that it conducts normal commercial trade with Iran and has not taken a side in the ongoing U.S.-Israeli conflict. Earlier this week, Chinese Foreign Minister Wang Yi called on the parties to the conflict to begin peace talks as soon as possible.
Reuters also reported last month that Iran was close to a deal with China on anti-ship cruise missiles, just as the U.S. began to deploy a naval force near the Iranian coast ahead of strikes.
