Samsung and SK Hynix test SMIC equipment to mitigate U.S. export restrictions.

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Samsung and SK Hynix are testing etching equipment from China’s SMIC for potential use in their Chinese factories, in response to possible U.S. export restrictions. The companies have been evaluating the equipment for about two years, but no expansion plans have been confirmed. They are concerned that future regulations may restrict the maintenance of Western-made tools in China. SMIC’s equipment could reduce costs, though certification delays and limited service support remain challenges. Traders following crypto and cryptocurrency news are monitoring how this development unfolds in the tech and supply chain sectors.

BlockBeats news, on August 5, according to Reuters, three sources said Samsung Electronics and SK Hynitz are evaluating etching equipment from China’s Zhongwei to consider for use in their factories in China, in response to the risk of further U.S. restrictions on semiconductor equipment exports. Both companies began related testing about two years ago but have not yet decided to expand deployment.


According to insiders, Samsung Electronics and SK Hynitz are concerned that future restrictions could extend from new equipment to the maintenance, repair, and replacement of existing Western equipment in their factories in China, prompting them to consider Chinese suppliers as backup options for maintaining and upgrading existing production lines, rather than for expanding capacity in China. Samsung Electronics denied having tested or considered using equipment from AMEC in its Chinese factories, while SK Hynitz declined to comment.


In 2025, the United States revoked the "Verified End User" status of two companies' factories in China, followed by issuing annual licenses for their 2026 imports of chip manufacturing equipment. Samsung Electronics operates a NAND factory in Xi'an, while SK Hynix operates a NAND factory in Dalian and a DRAM factory in Wuxi; these production lines currently rely heavily on etching equipment from U.S. manufacturers such as Applied Materials and Lam Research.


If Zhongwei's equipment ultimately receives certification from Samsung Electronics or SK Hynix, it would represent a significant commercial endorsement for Chinese semiconductor equipment manufacturers. According to TechInsights data, Chinese equipment is typically priced 20% to 30% lower than comparable overseas products, but still faces challenges such as lengthy certification cycles, limited service networks, intellectual property concerns, and political pressures.

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