Samsung and SK Hynix Secretly Test Chinese Chip Tools as a Hedge Against US Export Controls
Samsung and SK Hynix have been quietly evaluating etching tools from China's AMEC for their Chinese factories for about two years, according to a Reuters exclusive from August 5, 2026, though no decision on wider depl... The testing is driven by fear that future U.S.
What are the key details of Samsung and SK Hynix reportedly testing Chinese chip tools from AMEC as a hedge against U.SThe world's top memory chipmakers are evaluating Chinese etching equipment as a hedge against U.S. export controls, creating a geopolitical paradox that could strengthen the Chinese semiconductor tool industry.
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The world's two largest memory-chip makers — Samsung Electronics and SK Hynix — are quietly evaluating chipmaking equipment from a Chinese supplier as a hedge against the risk of tighter U.S. export controls, according to a Reuters exclusive published on August 5, 2026, citing three people familiar with the matter . The story reveals a deepening irony at the heart of American semiconductor policy: restrictions designed to cripple China's equipment industry may end up giving that industry its most powerful commercial endorsement yet.
What Is Being Tested and Where the Evaluations Stand
Both companies are testing etching tools from Shanghai-based Advanced Micro-Fabrication Equipment (AMEC) for potential use at their semiconductor fabrication plants in China . Etching is a critical step in chip manufacturing, used to carve circuit patterns onto silicon wafers.
Timeline: The evaluations began roughly two years ago, around mid-2024, when uncertainty was mounting over whether Washington would continue allowing the companies to import U.S. chipmaking tools into China .
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Samsung and SK Hynix have been quietly evaluating etching tools from China's AMEC for their Chinese factories for about two years, according to a Reuters exclusive from August 5, 2026, though no decision on wider depl...
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Samsung and SK Hynix have been quietly evaluating etching tools from China's AMEC for their Chinese factories for about two years, according to a Reuters exclusive from August 5, 2026, though no decision on wider depl... The testing is driven by fear that future U.S. rules could block servicing of Western tools in China — and it creates a geopolitical paradox where export controls intended to weaken Chinese equipment makers are instea...
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At the same time, both companies are pursuing the opposite strategy outside China: quietly stripping Chinese tool and component suppliers from their non China fabs to pre empt future U.S.
Current status: The tests are still ongoing and have not yet resulted in a decision to deploy Chinese tools at scale. The companies are treating this as a contingency option rather than an immediate replacement .
Samsung's public statement: Samsung told Reuters that it has not tested AMEC equipment for its China factory and had not considered doing so. That directly contradicts the sources who spoke to Reuters.
SK Hynix's response: SK Hynix declined to comment.
The U.S. Export Control Timeline: From Waiver to Annual Uncertainty
The AMEC evaluations did not emerge in a vacuum. They follow a series of U.S. regulatory actions that have progressively tightened the operating environment for foreign-owned fabs in China.
Date
Action
October 2023
The U.S. Commerce Department granted Samsung and SK Hynix Validated End-User (VEU) status, allowing them to import U.S. chipmaking tools into their China fabs without needing individual export licenses for each shipment .
August 29, 2025
The U.S. Bureau of Industry and Security (BIS) published a final rule revoking VEU authorizations for Samsung China Semiconductor Co., SK hynix Semiconductor (China) Ltd., and Intel Semiconductor (Dalian) . This forced the companies to seek case-by-case approvals.
December 30, 2025
The U.S. issued annual licenses for 2026 to both companies, temporarily allowing tool imports to their China facilities . This was a reprieve, but it shifted their status from indefinite authorization to a year-by-year arrangement that could be revoked at any time.
The shift from VEU status to annual licenses means that every year, Samsung and SK Hynix must reapply and hope for approval — creating persistent uncertainty for factories that represent roughly 28% of the world's memory production .
The Geopolitical Paradox: How Export Controls May Strengthen Chinese Toolmakers
U.S. export controls were designed to weaken China's semiconductor equipment industry by denying it customers among the world's leading chipmakers. But the Reuters report reveals the opposite dynamic at work: the top memory chipmakers are now actively evaluating Chinese alternatives.
If AMEC's etching tools are validated by Samsung and SK Hynix, it would be a landmark commercial endorsement for a Chinese supplier — one that directly undercuts Western toolmakers like Applied Materials, Lam Research, and Tokyo Electron . The U.S. restrictions are thus creating the very market opportunity for Chinese equipment makers that the policy was meant to prevent.
"US export controls backfiring in an interesting way, ironically bolstering China's chip industry," one industry analyst posted on X, summarizing the paradox .
Why Servicing Western Tools Is a Critical Concern
A key driver of the AMEC testing is the fear that future U.S. rules could block American and allied companies from servicing or maintaining Western tools already installed in Chinese fabs.
This is not an idle fear. Without access to replacement parts and maintenance, even fully owned Western equipment would become inoperable over time. Chinese tools, by contrast, offer a supply-chain backstop that is not subject to U.S. extraterritorial control . The evaluations are therefore less about replacing working equipment today and more about ensuring continuity of production if the servicing pipeline is cut.
The Chinese Fabs Involved
Both companies operate major production facilities in China that would be affected by any shift in equipment sourcing:
Samsung operates Samsung China Semiconductor Co., Ltd. in Xi'an (producing 3D NAND flash memory) and a second plant in Suzhou .
SK Hynix operates SK hynix Semiconductor (China) Ltd. in Wuxi (its largest DRAM production base), plus facilities in Dalian and Chongqing .
These fabs currently rely heavily on etching equipment from U.S. suppliers such as Applied Materials and Lam Research .
What a Commercial Endorsement Would Mean for AMEC
AMEC's etching tools already serve Chinese customers, including Yangtze Memory Technologies (YMTC), a leading NAND flash manufacturer . But a successful qualification by Samsung and SK Hynix would be on an entirely different level.
If the world's top two memory makers adopt AMEC tools for their China fabs, it would signal that the company's technology is competitive at advanced nodes — potentially accelerating its entry into non-Chinese markets and pressuring incumbent Western tool vendors on both price and market share .
The Cost Advantage: 20% to 30% Cheaper
Chinese chipmaking equipment is generally 20% to 30% cheaper than comparable Western alternatives, according to TechInsights vice chairman Dan Hutcheson . This price gap is a significant factor in the evaluations, especially for cost-sensitive memory production where margins are thin and volumes are enormous.
The Opposite Strategy: De-Sinicizing Non-China Fabs
Perhaps the most revealing aspect of this story is that Samsung and SK Hynix are simultaneously pursuing an opposite supply-chain strategy for their fabs outside China.
According to reports from July 2026, both companies are quietly stripping Chinese tool and component suppliers from their production lines in South Korea and other non-China facilities. This "China-free" redesign is meant to pre-empt the next wave of U.S. export controls, ensuring that their main fabs in Korea are not exposed to supply-chain disruptions if the U.S. ever restricts the use of Chinese-made equipment in foreign fabs .
So the approach is bifurcated: adopt Chinese tools within China as a hedge against being cut off from Western supply, but purge Chinese content from non-China fabs as a risk-mitigation measure against potential future restrictions.
The Bottom Line
The AMEC testing is not yet a done deal — the evaluations are still ongoing, and Samsung has publicly denied even conducting them. But the very fact that the world's two largest memory chipmakers have spent two years quietly qualifying Chinese etching equipment inside their Chinese fabs tells a powerful story about where U.S. export controls are actually landing. Designed to isolate China's equipment industry, they are instead pushing some of the world's most sophisticated chip buyers toward a Chinese alternative.
As one industry observer put it, "Controls were meant to keep Chinese toolmakers out of serious fabs. Samsung and SK Hynix even EVALUATING AMEC for their China plants means substitution is being pulled from the demand side now" .
China's Amec setting industry standard for chipmaking tech ...
