US chip restrictions could also be giving Chinese tools makers an surprising opening.
Samsung Electronics and SK Hynix have reportedly examined etching tools from China’s Advanced Micro-Fabrication Equipment for attainable use at their Chinese factories, based on Reuters, which cited three individuals aware of the matter. The evaluations may assist the Korean memory-chip makers put together for tighter limits on U.S. tools, servicing, and alternative elements.
Both firms dispute the account. Samsung mentioned it had neither examined AMEC tools for its China manufacturing facility nor thought-about doing so, whereas SK Hynix mentioned it had not examined AMEC instruments to be used in China.
The strain from US export controls
The reported trials come towards a backdrop of adjusting US semiconductor restrictions.
Samsung and SK Hynix have been designated “validated end users” by the US Commerce Department in 2023, which allowed their Chinese factories to obtain sure managed American tools with out separate licenses. That authorization was revoked in 2025, and the businesses later obtained annual licenses masking tools imports for 2026.
According to Reuters, the businesses are involved that future restrictions may prolong past new tools and have an effect on servicing, repairs, or alternative elements for Western instruments already working of their Chinese amenities.
The reported technique is much less about increasing manufacturing in China and extra about protecting present manufacturing traces operating if entry to U.S. and different Western suppliers turns into harder.
Why AMEC may benefit
AMEC already provides tools to main Chinese chipmakers, together with Yangtze Memory Technologies Co., and Chinese tools makers have made progress in areas akin to etching, deposition, cleansing, and planarization.
Reuters reported that Chinese chipmaking instruments can value 20% to 30% lower than comparable tools from established international suppliers, citing TechInsights Vice Chair Dan Hutcheson.
A profitable qualification with Samsung or SK Hynix can be a big business endorsement for China’s semiconductor tools trade, which remains to be behind world leaders in superior lithography and a few inspection applied sciences.
The evaluations illustrate an unintended consequence of US semiconductor coverage. Restrictions designed to restrict China’s know-how ambitions may encourage international producers working in China to diversify their tools suppliers.
For established tools firms akin to Applied Materials, Lam Research, and KLA, that might create stronger long-term competitors if Chinese distributors proceed enhancing product high quality whereas sustaining decrease costs.
Read extra: China has begun producing home DUV lithography machines as it really works to cut back reliance on ASML and different international suppliers.
