U.S. Chipmaker's China Units Targeted for Iran-Linked Sanctions

The US Commerce Department has sanctioned 26 companies and three addresses in China, Turkey, and the United Arab Emirates, including subsidiaries of US chip giant Arrow Electronics, for allegedly providing technology to Iran's military and proxies.

These entities were added to the department's entity list, prohibiting US vendors from selling to them without special approval.

The action targets firms accused of facilitating Iran's acquisition of US-made components, found in drone wreckage recovered since 2017 in the Gulf and Middle East.

Evidence includes parts in unmanned aircraft systems (UAS) used by Iranian proxies and drones operated by Hamas, seized by Israeli forces after the October 7, 2023, attack.

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Arrow's subsidiaries in China and Hong Kong were specifically named for enabling purchases by Iranian proxy groups. In response, Arrow Electronics affirmed its subsidiaries' compliance with US export laws and is in talks with the Commerce Department to address the claims.

Authorities warn US companies that export requests involving these entities will likely be denied due to national security risks. The sanctions aim to disrupt supply chains bolstering Iran's drone capabilities and those of groups like Hamas.

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This move intensifies US efforts to curb technology proliferation amid rising regional tensions. It highlights vulnerabilities in global supply chains and could impact tech trade in the sanctioned countries. Firms are urged to review Commerce Department guidelines for compliance.