Samsung Electronics and SK Hynix have been evaluating semiconductor manufacturing equipment developed by China's Advanced Micro-Fabrication Equipment (AMEC) for possible use at their production facilities in China, according to people familiar with the matter. The assessments began around two years ago as uncertainty increased over whether the United States would continue allowing the South Korean memory chipmakers to import advanced U.S. semiconductor manufacturing equipment into China.

The evaluations have not yet resulted in any decision to deploy AMEC's equipment on a wider scale. Samsung stated that it has not tested AMEC equipment for use at its China factory and has not considered doing so, while SK Hynix declined to comment.

The development reflects the impact of evolving U.S. export control policies on global semiconductor manufacturers. In 2023, the U.S. Commerce Department granted Samsung and SK Hynix's Chinese facilities Validated End User status, allowing imports of certain controlled semiconductor manufacturing equipment without individual licenses. However, the authorization was withdrawn in 2025, with annual licenses later issued for 2026 to permit imports of approved equipment.

Despite the temporary licensing arrangement, both companies remain cautious that future U.S. restrictions could extend beyond new equipment to maintenance, servicing, repair, or replacement of existing Western manufacturing tools. As a result, they are evaluating Chinese equipment suppliers as a potential backup option to support existing production lines rather than expand manufacturing capacity in China.

Samsung operates a NAND flash memory manufacturing facility in Xian, while SK Hynix operates NAND production in Dalian and DRAM manufacturing in Wuxi. These facilities currently rely heavily on etching equipment supplied by leading U.S. manufacturers such as Applied Materials and Lam Research.

For AMEC, securing approval from global semiconductor leaders such as Samsung or SK Hynix would represent a significant commercial milestone. Chinese semiconductor equipment manufacturers have steadily improved their capabilities in technologies including etching, deposition, cleaning, and planarisation while offering products at lower costs than many international competitors.

Industry estimates indicate that Chinese semiconductor equipment manufacturers are rapidly expanding their domestic market presence. Deutsche Bank projects that companies including AMEC, Naura Technology, Piotech, and ACM Research will each generate more than $1 billion in revenue during 2026. Together, they are expected to capture between 25 percent and 30 percent of China's wafer fabrication equipment market, with market share potentially approaching 40 percent in equipment segments excluding lithography and metrology.

The growing adoption of Chinese semiconductor equipment highlights an unintended consequence of U.S. technology restrictions, which have accelerated the development and commercial acceptance of China's domestic semiconductor equipment industry while creating new competitive challenges for established global suppliers.