Media: Samsung and SK Hynix Testing Chinese Chip Manufacturing Equipment to Avoid U.S. Risks

According to three sources cited by Reuters, South Korean companies Samsung Electronics and SK Hynix are evaluating chip manufacturing equipment from China's ASM Pacific Technology (Shanghai) Co., Ltd. (shortened as "ASM Pacific," AMEC), considering its use in their respective Chinese factories to mitigate risks arising from tightened U.S. export controls.

Two of the sources said that roughly two years ago, these two South Korean memory chip manufacturers had already begun testing AMEC’s etching equipment, as uncertainty grew over whether Washington would continue allowing them to import U.S.-made chip manufacturing equipment into China.

Samsung operates a NAND flash memory factory in Xi’an, while SK Hynix has a NAND production facility in Dalian and a DRAM memory chip factory in Wuxi. These plants heavily rely on etching equipment supplied by U.S. firms such as Applied Materials and Lam Research.

In 2023, the U.S. Department of Commerce designated Samsung and SK Hynix’s Chinese facilities as “Verified End Users” (VEU), permitting them to import certain controlled U.S. equipment without individual licenses. However, in 2025, Washington revoked the VEU status and instead issued annual licenses allowing Samsung and SK Hynix to import chip manufacturing equipment for their Chinese factories in 2026.

Despite this, sources say both companies remain concerned that future restrictions might extend beyond new equipment to include maintenance, repair, or replacement of Western-made equipment already installed in their Chinese factories. As a result, they are exploring Chinese suppliers as alternatives to sustain and upgrade existing production lines—rather than expand manufacturing capacity in China.

The report notes that gaining approval from either Samsung or SK Hynix would represent a powerful commercial endorsement for AMEC and other emerging Chinese semiconductor equipment manufacturers. While Chinese equipment makers still lag behind overseas competitors in advanced lithography and certain inspection systems, they have narrowed the gap—and often offer significantly lower costs—in areas such as etching, deposition, cleaning, and planarization.

According to the sources, AMEC’s equipment is already being used by leading Chinese chipmakers including Yangtze Memory Technologies (YMTC), giving Samsung and SK Hynix greater confidence that some of these systems are mature enough for testing.

It is currently unclear whether a decision has been made to deploy these tools more broadly.

The report highlights a broader paradox of U.S. technology controls: measures intended to curb Beijing’s ambitions in semiconductors are inadvertently creating opportunities for China’s domestic competitors to establish a foothold within foreign-owned factories operating in China.

Samsung told Reuters that the company had not tested AMEC’s equipment for suitability in its Chinese factories, nor had it considered doing so. SK Hynix declined to comment.

Original article: toutiao.com/article/1872651928137740/

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