Samsung, SK Hynix test Chinese chip tools to counter US sanction risks

South Korea's major memory chipmakers, Samsung Electronics and SK Hynix, have quietly evaluated semiconductor manufacturing equipment from Chinese suppliers inside their factories in China.

The tech companies are inspecting chipmaking equipment from Shanghai-based Advanced Micro-Fabrication Equipment (AMEC) as the South Korean firms hedge against the risk of tighter U.S. export controls.

As reported by Reuters, the memory chipmakers began testing AMEC etching equipment about two years ago, when uncertainty was mounting over whether Washington would continue allowing them to import U.S. chipmaking tools into China.

Although the U.S. transitioned foreign-owned fabrication plants in China onto annual licensing frameworks for importing new equipment-Samsung and SK Hynix remain worried that future regulatory tightening could cut off access to servicing, maintenance, and replacement parts for Western machinery already installed in their plants.

The U.S. Commerce Department designated Samsung and SK Hynix's Chinese factories as "validated end users" (VEU) in 2023, allowing imports of certain controlled U.S. equipment without obtaining individual licenses.

Washington revoked the VEU authorization in 2025 and later granted an annual license to the chipmakers to bring in chip manufacturing equipment to their facilities in China for 2026.

Even so, both companies remain wary that future restrictions could extend beyond new equipment to the servicing, repair or replacement of Western tools already installed at their Chinese plants, the sources said.

As a result, the chipmakers are keeping Chinese suppliers in reserve as a potential way to maintain and upgrade existing production lines, rather than expand manufacturing capacity in China, the sources added.

While Chinese equipment makers continue to trail overseas rivals in advanced lithography and some inspection systems, they have narrowed the gap in areas such as etching, deposition, cleaning and planarization, often at significantly lower cost.