Samsung Electronics and SK Hynix are reportedly testing equipment from China's Advanced Micro-Fabrication Equipment (AMEC) to mitigate risks posed by U.S. export restrictions.
55 minutes ago
According to Reuters, three people familiar with the matter said Samsung Electronics and SK Hynix are evaluating etching equipment from China's Advanced Micro-Fabrication Equipment Inc. (AMEC) for use at their factories in China, to mitigate risks from further U.S. tightening of chip equipment export restrictions. The two firms began related tests around two years ago but have not yet decided to expand deployment. The sources added that Samsung and SK Hynix fear future restrictions could extend beyond new equipment to the maintenance, repair and replacement of existing Western-made equipment at their Chinese facilities, so they are eyeing Chinese suppliers as a backup option for maintaining and upgrading existing production lines, not for expanding production capacity in China. Samsung Electronics denied testing or considering using AMEC's equipment at its Chinese factories, while SK Hynix declined to comment. The U.S. revoked the "Verified End User" (VEU) status of the two companies' Chinese factories in 2025, and later issued annual licenses for them to import chip manufacturing equipment in 2026. Samsung operates a NAND flash factory in Xi'an, while SK Hynix runs a NAND plant in Dalian and a DRAM plant in Wuxi; these production lines currently rely heavily on etching equipment from U.S. firms such as Applied Materials and Lam Research. If AMEC's equipment is ultimately certified by Samsung or SK Hynix, it would represent a major commercial endorsement for Chinese semiconductor equipment manufacturers. Data from TechInsights shows Chinese equipment is typically priced 20% to 30% lower than comparable overseas products, but still faces barriers including longer certification cycles, smaller service networks, intellectual property concerns and political pressure.
Analysts expect SK Hynix to announce a share repurchase plan soon.
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