"China’s SMIC Accused of Supplying Semiconductors to Iranian Military"

[The Financial News] Senior officials in the United States government have alleged that Chinese foundry Semiconductor Manufacturing International Corporation (SMIC) is providing semiconductor manufacturing technology to the Iranian military, raising the prospect of renewed escalation in US–China tensions.
On the 26th (local time), two senior officials from the Donald Trump administration said that SMIC has been supplying semiconductor manufacturing equipment and technology to organizations linked to the military of Iran.
One official, speaking on condition of anonymity, said, "SMIC began sending equipment to Iran about a year ago, and we have no reason to believe that this support has stopped." The official added, "This cooperation almost certainly includes training related to semiconductor technology."
The officials did not say whether the equipment in question was made in the United States. If it turns out to be US-made, the transfers could amount to a violation of sanctions on Iran.
China’s government has flatly denied the allegations. At a briefing on the 27th, Chinese Foreign Ministry spokesperson Lin Jian argued, "Some media outlets have recently been spreading information that sounds plausible but is not true, and this has been exposed as fake news." China continues to insist that its dealings with Iran are normal commercial activity.
Since it was added to the US Department of Commerce export control list in 2020, SMIC has repeatedly denied any ties to the Chinese military–industrial complex. However, the latest accusations come amid the current war in the Middle East and are further heightening geopolitical tensions.
Since the war in the Middle East broke out following the surprise attack on Iran by the United States and Israel on the 28th of last month, China has officially maintained a neutral stance, refraining from siding with either party. This week, Chinese Foreign Minister Wang Yi urged the parties involved to enter peace talks as soon as possible.
Even so, the US allegations of SMIC’s military cooperation with Iran are likely to further intensify the technological power struggle between Washington and Beijing.
The United States has sought to curb the advanced chipmaking capabilities of Chinese semiconductor firms, including SMIC, through sanctions. A key measure has been restricting exports to China by major US equipment makers such as Lam Research, KLA, and Applied Materials.
However, in August 2023, Huawei released a smartphone powered by its in-house designed Kirin 9000S chip, prompting assessments that cracks were appearing in the sanctions regime. At the time, Washington believed that China’s lack of access to extreme ultraviolet lithography (EUV) equipment made it difficult to achieve advanced process nodes at 14 nanometers and below. SMIC nevertheless managed to realize a 7-nanometer process by repeatedly using existing deep ultraviolet (DUV) lithography equipment in a multiple patterning technique.
In response, the US government further tightened pressure from early 2024 by blocking additional exports of equipment and parts to SMIC’s plant in Shanghai. With the new allegations of support for Iran now added to the mix, the US–China battle for technological supremacy over semiconductors is increasingly spilling over into the military domain.

km@fnnews.com Kim Kyung-min Reporter