Samsung and SK Hynix are testing the etching equipment from Zhongwei Company to hedge against the risks of U.S. export controls

According to Reuters, citing three informed sources, Samsung Electronics and SK Hynix are testing the etching equipment from Chinese semiconductor equipment manufacturer AMEC to assess its potential application in their factories in China, aiming to hedge against the risk of the U.S. potentially tightening export controls in the future. The testing began about two years ago, coinciding with rising uncertainty over whether the U.S. would allow Korean companies to import U.S.-made chip equipment to China.

The report noted that although no decision has yet been made on large-scale deployment, verification from Samsung or SK Hynix would be an important commercial endorsement for AMEC. The gap in etching, deposition, cleaning, and other areas for Chinese equipment has gradually narrowed, with prices typically 20%-30% lower than similar overseas products. Samsung officially denied having tested AMEC equipment for its factories in China, while SK Hynix declined to comment. Deutsche Bank expects Northern Huachuang, AMEC, Tuojing Technology, and Shengmei Semiconductor to each exceed $1 billion in revenue by 2026, collectively expected to capture 25%-30% of China's approximately $28 billion wafer fabrication equipment market this year.