Samsung and SK Hynix consider AMEC tools as export controls tighten

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SK Hynix consider AMEC tools

Highlights

Samsung and SK Hynix are testing Chinese chip tools.
The move is a hedge against tighter U.S. export rules.
AMEC could gain rare validation from global chipmakers.
The trials may weaken the grip of Western suppliers.

The South Korean memory-chip makers began assessing etching systems from Shanghai-based Advanced Micro-Fabrication Equipment, or AMEC, about two years ago, according to Reuters. No decision has been made on broader deployment, and Samsung denied testing AMEC equipment for its Chinese plant or considering its use. SK Hynix declined to comment.

China plants need a backup option

Samsung operates a NAND flash facility in Xian, while SK Hynix produces DRAM in Wuxi and NAND memory in Dalian. Those factories rely heavily on etching tools from U.S. suppliers, including Applied Materials and Lam Research.

Washington removed the companies Validated End User status in 2025, ending their ability to ship certain U.S. equipment to China without individual approval. Annual licenses have allowed deliveries during 2026, but uncertainty remains over future access to new tools, spare parts, servicing, and replacement equipment.

Chinese systems are therefore being considered mainly as a way to maintain and upgrade existing production lines, rather than expand capacity. Replacing established Western tools would still require lengthy qualification, process adjustments, and reliable technical support.

AMEC gains a rare qualification opportunity

Approval from either Korean manufacturer would provide AMEC with a significant commercial endorsement. Its etching equipment is already used by major Chinese chipmakers, including NAND producer Yangtze Memory Technologies, giving foreign operators more evidence that some locally made systems are mature enough for evaluation.

Chinese manufacturers remain behind overseas competitors in advanced lithography and some inspection technologies. They have, however, narrowed the gap in etching, deposition, cleaning, and planarisation, while their equipment can cost 20% to 30% less than comparable foreign systems.

The tests illustrate an unintended effect of U.S. policy. By making Western equipment access less predictable, export controls are encouraging foreign-owned factories in China to qualify domestic alternatives.

Pressure builds on established suppliers

A successful qualification would not immediately displace Applied Materials, Lam Research, or other global leaders. Intellectual-property concerns, smaller service networks, and political pressure remain substantial barriers.

Still, China's domestic equipment makers are gaining scale. AMEC, Naura Technology, Piotech, and ACM Research are each expected to generate more than $1 billion in 2026 revenue, while local suppliers could capture 25% to 30% of China's projected $28 billion wafer-fabrication equipment market. The longer export uncertainty persists, the stronger the incentive for chipmakers to maintain a second supply chain.

We have previously highlighted that Samsung and SK Hynix plan massive AI chip investments in South Korea.

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