The Companies Are Evaluating Alternative Supply Options Amid Potential New u

Samsung Electronics and SK Hynix are testing Chinese chip-making equipment at their factories in China, according to, citing sources familiar with the matter. The companies are evaluating alternative supply options amid potential new U.S. export restrictions. The tests involve etching systems developed by Chinese semiconductor equipment maker AMEC and began about two years ago, though no decision has been made on widespread use.

The firms are concerned the U.S. might also restrict maintenance, repair, and spare parts services for Western equipment used in their Chinese facilities. Samsung told it has not tested AMEC equipment at its Chinese plant and has no such plans, while SK Hynix denied conducting such tests. In 2023, the U.S. allowed Samsung and SK Hynix to receive certain American equipment for their Chinese plants without licenses; that authorization was lifted in 2025, and the companies were granted annual import licenses for 2026. Samsung produces NAND flash in China, while SK Hynix makes NAND and DRAM there, with most etching equipment raphy and some inspection systems but have made significant progress in etching, coating, cleaning, and planarization, offering equipment at 20-30% lower cost than foreign rivals, per TechInsights.

AMEC's tools are already used by Chinese memory maker YMTC, boosting confidence in their maturity. Approval from Samsung or SK Hynix would be a major commercial reference for AMEC and other Chinese firms, potentially increasing competitive pressure on Applied Materials, Lam Research, KLA, and Japanese and European equipment makers. However, Chinese producers face hurdles including long certification processes, limited service networks, intellectual property concerns, and possible U.S. political pressure. U.S. export controls have accelerated China's semiconductor equipment industry; Deutsche Bank projects Naura Technology, AMEC, Piotech, and ACM Research will each generate over $1 billion in revenue in 2026, potentially controlling 25-30% of China's $28 billion wafer fabrication equipment market, or nearly 40% excluding lithography and metrology systems.