0 months ago
Samsung, SK Hynix Test Chinese Chip Tools Amid Export Uncertainty
Two big companies that make memory chips for computers are Samsung and SK Hynix.
They have factories in China.
The United States has rules about which high-tech machines can be used there.
The companies are worried the rules might get even stricter.
To be safe, they started testing chipmaking machines made in China.
They began testing about two years ago.
American rules currently let them bring certain US machines to China without special permission.
But future rules could stop them from fixing or replacing those machines.
Chinese machine makers hope this testing will lead to more business for them.
Some computer brands are also starting to use Chinese memory chips in laptops sold outside the US.
Samsung Electronics and SK Hynix have been testing etching equipment from China's Advanced Micro-Fabrication Equipment (AMEC) for possible use at their factories in China, according to three sources familiar with the matter.
The trials began about two years ago as uncertainty grew over whether Washington would continue allowing the companies to import US chipmaking tools into China.
In 2023, the US Commerce Department designated Samsung's and SK Hynix's Chinese factories as 'Validated End Users,' allowing imports of certain controlled US equipment without individual licences.
The companies are preparing for the possibility that future restrictions could extend beyond new equipment imports to the servicing, repair or replacement of Western tools already installed at their Chinese plants.
Separately, reports indicate PC makers HP, Asus and Acer have begun using limited numbers of Chinese memory chips made by CXMT in notebooks intended for markets outside the United States.
- Who
- Samsung Electronics, SK Hynix, Chinese equipment maker Advanced Micro-Fabrication Equipment (AMEC), and, separately, PC makers HP, Asus and Acer
- What
- Testing Chinese chipmaking equipment as a hedge against the risk of tighter US export controls on semiconductor manufacturing tools
- Where
- Samsung's and SK Hynix's factories in China
- When
- Testing began about two years ago; the US granted 'Validated End User' status in 2023
- Why
- To safeguard against possible future US restrictions that could extend to importing, servicing, repairing or replacing Western chipmaking tools at their Chinese plants
Export control perspective
Supply continuity perspective
US export controls on chip tools
Export control perspective
US authorities restrict advanced chipmaking equipment to China to protect technology leadership and national security interests.
Supply continuity perspective
Chipmakers need dependable access to equipment and services for their Chinese factories, so they keep Chinese suppliers in reserve in case restrictions tighten further.
Chinese equipment adoption
Export control perspective
Greater validation of Chinese suppliers could pose a long-term challenge to established global equipment vendors and raises intellectual property, security and geopolitical concerns.
Supply continuity perspective
Chinese equipment makers are steadily gaining traction, and the trials represent a rare opportunity for them to secure validation from some of the world's leading memory chip manufacturers.
Key facts
- Companies
- Samsung Electronics, SK Hynix
- Chinese equipment maker
- Advanced Micro-Fabrication Equipment (AMEC)
- Equipment under evaluation
- Etching equipment
- Trials began
- About two years ago
- US policy change
- 2023 'Validated End User' designation for Chinese factories
- Backup strategy
- Maintain and upgrade existing Chinese production lines, not expand capacity
- PC makers using CXMT chips
- HP, Asus, Acer (notebooks for markets outside the US)
Sources
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