TAIPEI (Taiwan News) — The US imposed economic sanctions Thursday on two Taichung-based companies, Mecatron Machinery Co. and Joemars Machinery and Electric Industrial Co., for allegedly supporting Iran's military unmanned aerial vehicle, UAV, development program, per CNA.

The US Treasury Department said the two Taiwanese firms were used by an Iranian company, Control Afzar, to facilitate the shipment of computer numerical control machines and related equipment to Iran. Control Afzar allegedly has been helping procure such equipment for the Iran Aircraft Manufacturing Industrial Company, a state-owned enterprise under Iran’s defense ministry.

Computer numerical control machining plays a crucial role in aircraft manufacturing, enabling the production of precise, complex components with high efficiency and consistency. It also allows for the creation of engine components, structural elements, and landing gear that meet required specifications.

All assets of the two companies in the US have been frozen, the department said. In addition, any US business in which the two companies hold a 50% or greater ownership stake is also subject to asset freezes unless specific authorization is granted by the US Office of Foreign Assets Control.

The department highlighted that these sanctions are part of broader US efforts to counter Iran’s missile and drone development programs. Other individuals and entities in Iran, China, and Hong Kong were identified as participants in the procurement network supporting Iran’s military development.

The department added the action was taken to enforce National Security Presidential Memorandum-2, a directive signed by US President Donald Trump that outlines the national security decision-making framework. 

In response, the International Trade Administration said that it will strengthen export controls. The agency also plans to organize informational sessions to help local tool and machinery manufacturers better understand US export regulations.