According to reports, US export controls on China have inadvertently created opportunities for Chinese equipment makers, with both Samsung and SK hynix evaluating the introduction of chip-making tools from AMEC (Advanced Micro-Fabrication Equipment Inc.) into their Chinese factories to hedge against tightening US restrictions. Sources familiar with the matter indicate that the two South Korean memory leaders began testing AMEC's etching equipment roughly two years ago, though this has not yet expanded into large-scale adoption.
Documents show that in 2023, the US designated Samsung and SK hynix's China plants as Validated End Users (VEU), allowing them to import certain restricted US equipment without case-by-case approval. However, in 2025, the US revoked this status and replaced it with a one-year license, permitting imports of controlled gear through 2026. Insiders point out that even if Samsung and SK hynix are granted approval for new equipment purchases, future restrictions could also cover maintenance, repairs, and spare parts for existing Western gear. As a result, both companies are keen to retain Chinese equipment makers as a backup option to sustain and upgrade current production lines in their China operations.
On the competitive front, the gap in technologies such as etching, thin-film deposition, cleaning, and chemical mechanical planarization (CMP) has narrowed significantly for Chinese equipment makers. Cost advantages are particularly pronounced, with Dan Hutchison, Vice Chairman of TechInsights, noting that Chinese gear is typically 20% to 30% cheaper than comparable international counterparts. Furthermore, AMEC's equipment has already been adopted by leading Chinese chip manufacturers such as Yangtze Memory Technologies Corp (YMTC), giving Samsung and SK hynix greater confidence that some systems are mature enough for testing.
Intriguingly, Samsung issued a statement denying that it has tested AMEC's equipment in China or has any plans to do so, while SK hynix declined to comment. As of now, AMEC and US authorities have not responded to these developments.