US chip restrictions may be giving Chinese equipment makers an unexpected opening.
Samsung Electronics and SK Hynix have reportedly tested etching equipment from China’s Advanced Micro-Fabrication Equipment for possible use at their Chinese factories, according to Reuters, which cited three people familiar with the matter. The evaluations could help the Korean memory-chip makers prepare for tighter limits on U.S. equipment, servicing, and replacement parts.
Both companies dispute the account. Samsung said it had neither tested AMEC equipment for its China factory nor considered doing so, while SK Hynix said it had not tested AMEC tools for use in China.
The pressure from US export controls
The reported trials come against a backdrop of changing US semiconductor restrictions.
Samsung and SK Hynix were designated “validated end users” by the US Commerce Department in 2023, which allowed their Chinese factories to receive certain controlled American equipment without separate licenses. That authorization was revoked in 2025, and the companies later received annual licenses covering equipment imports for 2026.
According to Reuters, the companies are concerned that future restrictions could extend beyond new equipment and affect servicing, repairs, or replacement parts for Western tools already operating in their Chinese facilities.
The reported strategy is less about expanding manufacturing in China and more about keeping existing production lines running if access to U.S. and other Western suppliers becomes more difficult.
Why AMEC could benefit
AMEC already supplies equipment to major Chinese chipmakers, including Yangtze Memory Technologies Co., and Chinese equipment makers have made progress in areas such as etching, deposition, cleaning, and planarization.
Reuters reported that Chinese chipmaking tools can cost 20% to 30% less than comparable equipment from established foreign suppliers, citing TechInsights Vice Chair Dan Hutcheson.
A successful qualification with Samsung or SK Hynix would be a significant commercial endorsement for China’s semiconductor equipment industry, which is still behind global leaders in advanced lithography and some inspection technologies.
The evaluations illustrate an unintended consequence of US semiconductor policy. Restrictions designed to limit China's technology ambitions may also encourage foreign manufacturers operating in China to diversify their equipment suppliers.
For established equipment companies such as Applied Materials, Lam Research, and KLA, that could create stronger long-term competition if Chinese vendors continue improving product quality while maintaining lower prices.
Read more: China has begun producing domestic DUV lithography machines as it works to reduce reliance on ASML and other foreign suppliers.