Samsung and SK Hynix Test Equipment from Chinese Company to Mitigate U.S. Export Restrictions

Huo Xing Finance reports that on August 5, according to Reuters, three sources said Samsung Electronics and SK Hynitz are evaluating etching equipment from China’s Zhongwei Technologies for potential use in their factories in China, as a precaution against further U.S. restrictions on semiconductor equipment exports. Both companies began related testing approximately two years ago but have not yet decided to expand deployment. The sources indicated that Samsung Electronics and SK Hynitz are concerned that future restrictions could extend beyond new equipment to include maintenance, repair, and replacement of existing Western-made equipment in their Chinese facilities. As a result, they are considering Chinese suppliers as backup options to sustain and upgrade existing production lines, rather than to expand capacity in China. Samsung Electronics denied having tested or considered using Zhongwei’s equipment in its Chinese factories, while SK Hynitz declined to comment. In 2025, the U.S. revoked the “Verified End User” status for both companies’ Chinese facilities and now issues annual licenses for their imports of chip manufacturing equipment in 2026. Samsung Electronics operates a NAND factory in Xi’an, while SK Hynitz operates a NAND factory in Dalian and a DRAM factory in Wuxi; these production lines currently rely heavily on etching equipment from U.S. vendors such as Applied Materials and Lam Research. If Zhongwei’s equipment ultimately receives certification from Samsung Electronics or SK Hynitz, it would represent significant commercial validation for China’s semiconductor equipment manufacturers. According to TechInsights data, Chinese equipment is typically priced 20% to 30% lower than comparable overseas products, but still faces challenges including lengthy certification cycles, limited service networks, intellectual property concerns, and political pressure.