U.S. Says SMIC Aided Iran
Reuters reports U.S. officials allege China’s top chipmaker SMIC supplied chipmaking technology to Iran’s military sector — an escalation that increases geopolitical risk around semiconductor supply chains. The investigation heightens pressure on enforcement and due diligence for component provenance in global sourcing. (reuters.com)
U.S. officials told reporters the alleged transfers began “roughly a year ago,” and one official said “we have no reason to believe that any of this has stopped.” (ndtv.com) The Commerce Department added Semiconductor Manufacturing International Corporation to the Entity List effective Dec. 18, 2020, a designation that triggers additional licensing requirements for exports of U.S.-origin technology. (federalregister.gov) U.S. export-control policy specifically targets restricting advanced semiconductor equipment from vendors such as Applied Materials, Lam Research and KLA, even as reporting found Chinese firms bought roughly $38 billion of advanced chip tools last year. (congress.gov) SMIC has publicly denied allegations of ties to China’s military-industrial complex in past statements. (straitstimes.com) China’s foreign ministry publicly accused international media of publishing “false information” after the recent reporting on the transfers. (timesofislamabad.com) Exporters engaged in transactions subject to the Export Administration Regulations must file BIS license applications for shipments to entities on the Entity List, a compliance obligation reiterated in the Federal Register notice that added SMIC. (federalregister.gov)
