Samsung and SK Hynix evaluate Chinese chip equipment as U.S. restrictions remain a concern

Samsung Electronics (USOTC:SSNHZ) and SK Hynix (NASDAQ:SKHY) have been testing semiconductor manufacturing equipment supplied by China’s Advanced Micro-Fabrication Equipment (AMEC) at their production facilities in China, according to a Reuters report citing sources familiar with the matter.

Shares of both South Korean chipmakers moved higher following the report, with SK Hynix rising 4.9% and Samsung Electronics gaining 2.5%, outperforming the broader KOSPI index, which advanced around 4%.

Chipmakers seek contingency plans

According to Reuters, the evaluations began roughly two years ago and are designed to provide an alternative source of equipment should future US export restrictions limit access not only to new Western semiconductor tools but also to replacement parts and maintenance services for machinery already operating in China.

The report noted that the testing does not indicate Samsung or SK Hynix have decided to adopt Chinese equipment on a large commercial scale.

Instead, the assessments are viewed as part of broader contingency planning as geopolitical uncertainty continues to reshape the global semiconductor supply chain.

Export controls create unexpected consequences

The reported trials highlight an unintended effect of Washington’s efforts to limit China’s access to advanced semiconductor technology.

Rather than relying exclusively on Western suppliers, major international chipmakers with manufacturing operations in China are increasingly exploring domestic Chinese equipment providers as a safeguard against future restrictions.

Should AMEC eventually secure supply agreements with Samsung or SK Hynix, it would represent one of the strongest commercial validations to date for China’s semiconductor equipment industry.

Maintenance concerns drive evaluations

Samsung and SK Hynix were granted validated end-user status by the United States in 2023, allowing their Chinese fabrication plants to import certain controlled US semiconductor equipment without requiring individual export licences.

That status was withdrawn in 2025 before both companies later obtained annual licences covering equipment imports during 2026.

Despite those approvals, both manufacturers reportedly remain concerned that future US restrictions could extend beyond new equipment and affect servicing, maintenance and replacement parts for Western machinery already installed at their Chinese fabrication facilities.

As a result, maintaining relationships with Chinese equipment suppliers could help ensure existing production continues uninterrupted rather than support future capacity expansion.

Significant hurdles remain

Any broader deployment of Chinese chipmaking equipment would still face several challenges.

According to Reuters, these include lengthy qualification procedures, more limited after-sales service networks, intellectual property considerations and the possibility of additional political pressure from Washington.

For now, the testing appears to represent a precautionary measure rather than a significant shift in procurement strategy.

Samsung stock price

SK Hynix stock price