South Korean semiconductor giants Samsung Electronics and SK Hynix are reportedly evaluating Chinese-made chipmaking equipment as a possible safeguard against future restrictions on American technology.
Three people familiar with the matter told Reuters that the companies had tested etching equipment manufactured by Shanghai-based Advanced Micro-Fabrication Equipment, commonly known as AMEC. The sources spoke anonymously because of the commercially and politically sensitive nature of the evaluations.
Etching machines are essential in semiconductor manufacturing. They remove selected materials from silicon wafers to create the microscopic patterns and structures required to produce memory chips, processors and other electronic components.
Two of the sources said evaluations of AMEC equipment began approximately two years ago as uncertainty increased over whether Washington would continue allowing Samsung and SK Hynix to import American chipmaking tools into their factories in China.
However, both companies disputed the report. Samsung said it had not tested AMEC equipment for use at its Chinese factory and had not considered doing so. SK Hynix similarly denied testing AMEC equipment for deployment in China.
Reuters reported that the evaluations had not resulted in a decision to install Chinese tools on a large scale. Testing a machine does not necessarily mean that a manufacturer will purchase it or use it in commercial production.
Samsung operates a major NAND flash-memory factory in Xi’an. SK Hynix operates NAND facilities in Dalian and a DRAM plant in Wuxi. These factories are important parts of the companies’ international manufacturing networks.
The facilities depend heavily on etching and other chipmaking tools supplied by US companies such as Applied Materials and Lam Research. Changes to American export rules could make maintaining, repairing or replacing these machines more difficult.
In 2023, the US government designated the companies’ Chinese facilities as validated end users, allowing them to receive some controlled American equipment without applying for individual licences.
Washington revoked that authorization in 2025 before granting annual licences covering certain equipment shipments during 2026. The temporary system has created uncertainty about whether similar permissions will continue in subsequent years.
According to Reuters’ sources, Samsung and SK Hynix may be keeping Chinese suppliers available as a contingency to maintain or upgrade existing production lines rather than expand their manufacturing capacity in China.
The development also reveals an unintended consequence of US semiconductor restrictions. Measures designed to slow China’s technological progress may encourage foreign chipmakers operating inside China to evaluate locally manufactured alternatives.
Chinese semiconductor-equipment companies have narrowed the technological gap in areas such as etching, deposition, wafer cleaning and planarisation. However, they continue to trail major international suppliers in advanced lithography and some inspection technologies.
Chinese equipment can cost between 20% and 30% less than comparable machinery supplied by established foreign manufacturers, according to TechInsights Vice Chair Dan Hutcheson.
AMEC equipment is already used by major Chinese semiconductor manufacturers, including NAND producer Yangtze Memory Technologies Corporation. Successful adoption by Samsung or SK Hynix would provide the company with significant international credibility.
Such a breakthrough could also create stronger competition for American equipment suppliers Applied Materials, Lam Research and KLA, together with established Japanese and European manufacturers.
Chinese suppliers still face substantial obstacles, including smaller international service networks, lengthy equipment-qualification procedures, intellectual-property concerns and possible political pressure from Washington.
Deutsche Bank estimates that AMEC, Naura Technology, Piotech and ACM Research could each generate more than $1 billion in revenue during 2026. Together, Chinese suppliers could capture between 25% and 30% of China’s projected $28 billion wafer-fabrication equipment market.
The report is important because Samsung and SK Hynix are among the world’s leading memory-chip manufacturers. Their technology supports smartphones, computers, servers, vehicles and artificial-intelligence data centres worldwide.
