Samsung and SK Hynix are reportedly testing Chinese chipmaking tools

Samsung and SK Hynix currently import their processing chips from the United States.

A new report claims that Samsung Electronics and SK Hynix have been privately testing chipmaking tools from the China-based AMEC (Advanced Micro-Fabrication Equipment). The move comes as the companies brace for potential restrictions on U.S. exports.

Sources contacted by Reuters revealed that Samsung and SK Hynix have been testing Chinese chip tools for as long as the past two years. Both companies are based in South Korea, but operate factories in China. Samsung also has a factory in Austin, Texas, and both companies export chips from the United States of America to Asia.

The companies haven’t made a decision to fully transition to Chinese chips, but the consideration was born out of growing concerns around U.S. export restrictions, the report claims. Last year, both companies had their VEU (validated end user) authorizations revoked and replaced with annual licenses to export chips. It’s led to internal concerns that restrictions may tighten in the future, or that they may lose their ability to export entirely.

Samsung and SK Hynix chips are used to power smartphones, tablets, and other consumer devices. The boom in AI technology and shifting restrictions from government bodies have put a bind on the chipmaking business, driving up prices on memory-related technology and sending shockwaves through the tech and gaming industries. Neither Samsung nor SK Hynix has commented on the report.

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