Samsung Electronics and SK Hynix are evaluating chipmaking equipment produced by China’s Advanced Micro Fabrication Equipment (AMEC) for possible use at their manufacturing facilities in China, as the South Korean technology giants prepare for the possibility of tighter U.S. export restrictions.
The two memory chipmakers began testing AMEC’s semiconductor etching equipment around two years ago as uncertainty grew over whether Washington would continue allowing foreign manufacturers to import advanced U.S. chipmaking tools into China.
Although the evaluations have not yet resulted in broader deployment decisions, industry sources said the trials represent a significant opportunity for AMEC to gain validation from two of the world’s largest semiconductor manufacturers.
The move also highlights an unintended consequence of U.S. technology restrictions, with export controls creating opportunities for Chinese equipment manufacturers to strengthen their position within foreign operated chip factories in China.
Samsung, however, told Reuters it has not tested AMEC equipment for use at its Chinese factory and has not considered doing so. SK Hynix declined to comment, while AMEC and the U.S. Bureau of Industry and Security (BIS) did not immediately respond to requests for comment.
Export control concerns
The U.S. Commerce Department designated Samsung and SK Hynix’s Chinese facilities as Validated End Users (VEU) in 2023, allowing them to import certain controlled American semiconductor equipment without obtaining individual export licences.
That status was revoked in 2025, although the companies later received annual licences allowing them to import equipment into their Chinese factories throughout 2026.
Despite those licences, industry sources said both firms remain concerned that future restrictions could eventually extend beyond new equipment to include maintenance, servicing and replacement parts for existing Western supplied machinery.
As a result, the companies are keeping Chinese equipment suppliers as potential alternatives to maintain and upgrade existing production lines if access to Western equipment becomes more restricted.
Samsung operates a NAND flash memory production facility in Xi’an, while SK Hynix manufactures NAND memory in Dalian and DRAM memory chips in Wuxi.
Chinese suppliers gaining ground
Both companies currently rely heavily on etching equipment supplied by U.S. firms including Applied Materials and Lam Research.
However, AMEC’s technology is already being used by major Chinese semiconductor manufacturers such as Yangtze Memory Technologies Co. (YMTC), giving Samsung and SK Hynix greater confidence that some of the equipment has matured sufficiently for evaluation.
Chinese semiconductor equipment manufacturers continue to trail global rivals in advanced lithography systems but have significantly narrowed the technology gap in several other areas, including:
- Etching equipment
- Deposition systems
- Cleaning equipment
- Chemical mechanical planarisation tools
Industry analysts estimate Chinese equipment can cost between 20% and 30% less than comparable products from established international manufacturers.
Growing competitive pressure
Analysts said Chinese suppliers could eventually challenge long established equipment makers such as:
- Applied Materials
- Lam Research
- KLA
- Japanese semiconductor equipment manufacturers
- European chipmaking equipment firms
China remains one of the industry’s largest markets. Applied Materials generated US$8.53 billion in Chinese revenue during fiscal 2025, accounting for around 30% of its global sales, according to Reuters.
Industry experts caution that widespread adoption of Chinese equipment still faces major obstacles, including lengthy qualification processes, smaller service networks, intellectual property concerns and potential geopolitical pressure from Washington.
Even if Chinese equipment is adopted in China, it remains unclear whether Samsung or SK Hynix would deploy the technology at their manufacturing facilities in South Korea because of security and intellectual property considerations.
Nevertheless, analysts say U.S. export controls have accelerated the growth of China’s domestic semiconductor equipment industry. Deutsche Bank estimates that companies including Naura Technology, AMEC, Piotech and ACM Research could each generate more than US$1 billion in revenue during 2026.
Combined, Chinese manufacturers are expected to capture 25% to 30% of China’s projected US$28 billion wafer fabrication equipment market this year, with their market share potentially approaching 40% in equipment categories excluding lithography and metrology.
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