Samsung and SK Hynix Test Chinese Chip Equipment to Hedge Against U.S. Export Control Risks
Taylor Wilson
Samsung and SK Hynix are evaluating etch tools made by China's AMEC for possible use in their Chinese fabs, hedging against tighter U.S. export controls. This means the world's two largest memory-chip makers are, for the first time, putting a Chinese equipment vendor on their backup list — a signal that goes well beyond procurement.
Why are Korean chip giants testing Chinese equipment?
The core driver is uncertainty over U.S. export controls. Both companies began testing AMEC's etch tools roughly two years ago, as doubts grew over whether Washington would keep allowing them to import American equipment into their Chinese fabs.
This means → the move is not a vote of confidence in Chinese gear — it is an insurance policy. If the U.S. tightens the door further, production lines cannot afford to stop.
No large-scale deployment decision has been made. Samsung denied the report in a statement; SK Hynix declined to comment.
How have U.S. controls changed?
In 2023, the Commerce Department granted Samsung's and SK Hynix's Chinese fabs "Validated End-User" (VEU) status — essentially a standing pass to import certain controlled U.S. equipment without case-by-case licenses.
In 2025, Washington revoked that authorization, then issued annual licenses for 2026 — shifting from a standing pass to a year-by-year review.
In plain terms = the rules went from "allowed by default" to "could be pulled at any time," forcing both companies to prepare a Plan B.
What are the Korean firms really worried about?
Sources say the companies' deepest concern is not just a ban on importing new equipment but potential restrictions on maintenance, servicing, and spare-part replacement for Western tools already installed.
This means → even without buying a single new machine, existing lines could gradually grind to a halt if repairs are blocked.
Both firms therefore position Chinese suppliers as a backup for maintaining and upgrading current lines, not as a vehicle for expanding Chinese capacity. Samsung runs a NAND flash fab in Xi'an; SK Hynix operates a NAND fab in Dalian and a DRAM fab in Wuxi. All three rely heavily on etch equipment from Applied Materials and Lam Research.
Where does AMEC's equipment stand?
AMEC tools are already used by YMTC (Yangtze Memory Technologies) and other leading Chinese chipmakers, which has partly reassured the Korean firms about the equipment's maturity.
According to Dan Hutcheson, vice chair of TechInsights, Chinese equipment typically costs 20 % to 30 % less than comparable foreign tools.
In etching — the process of chemically or physically carving circuit patterns into a wafer — as well as deposition, cleaning, and planarization, Chinese vendors have been narrowing the gap. But they still lag significantly in advanced lithography and some inspection systems.
What would Korean certification mean for AMEC?
For AMEC and the broader Chinese semiconductor-equipment industry, winning Samsung's or SK Hynix's approval would be a major commercial endorsement — effectively a ticket into the world's top-tier customer base.
This reflects a shift: Chinese equipment makers are moving from "serving domestic customers only" toward "entering foreign-owned supply chains." Over time, that poses competitive pressure on Applied Materials, Lam Research, KLA, and their Japanese and European peers. Applied Materials booked $8.53 billion in China revenue in fiscal 2025 — 30 % of total sales.
Still, Chinese vendors face steep hurdles to entering foreign-owned fabs: lengthy qualification cycles, thin service networks, IP disputes, and potential political pressure from Washington. Whether these tests lead to large-scale purchases remains the key open question.
Content is for reference only, not financial advice.