Samsung Electronics and SK Hynix are testing chipmaking equipment produced by China’s Advanced Micro-Fabrication Equipment in their plants in China, as part of evaluations that began about two years ago, according to a Reuters report citing people familiar with the matter. The report did not specify when a decision on using the equipment would be made.
Backup option for plants in China
The evaluations are intended to provide a backup option for the South Korean memory-chip makers in case the United States imposes future restrictions that could limit access to new Western manufacturing equipment, as well as maintenance services and spare parts for equipment already installed in China.
The trials do not mean the companies have decided to deploy Chinese equipment on a broad scale, the report said. Instead, the companies are assessing Chinese suppliers to maintain existing production, not to expand capacity.
Both companies’ shares rise
Shares of the South Korean chipmakers rose during the trading session referred to in the report, with SK Hynix gaining 4.90% and Samsung Electronics rising 2.50%, compared with a gain of about 4% for the KOSPI.
Orders from Samsung or SK Hynix could provide important commercial validation for China’s domestic chip-equipment industry, at a time when U.S. export controls are prompting foreign chipmakers operating in China to assess local suppliers as backup alternatives.
U.S. licensing status changes
The United States placed Samsung’s and SK Hynix’s plants in China on its approved end-user list in 2023, allowing the companies to import certain controlled U.S. equipment without needing individual licenses.
That license was revoked in 2025, before the companies secured annual licenses covering equipment imports for 2026. Their concerns, however, center on the possibility that future restrictions could extend to maintenance and repair services for Western equipment already operating at their plants in China.
Barriers to wider use
Any broader adoption of Chinese equipment would face obstacles including lengthy qualification processes, limited service networks and intellectual-property concerns, as well as possible political pressure from Washington, the report said.
