[News] Samsung, SK hynix Reportedly Look Beyond Chinese Tool and Component Suppliers Amid Supply Chain Risks

South Korea’s leading chipmakers have begun reshaping their semiconductor materials, components, and equipment (MCE) supply chains to reduce dependence on China. According to ETNews, sources say Samsung Electronics and SK hynix are evaluating alternatives to equipment from Chinese-owned Mattson Technology, particularly photoresist (PR) strip systems that remove photoresist residue and rapid thermal processing (RTP) systems used to heat semiconductor wafers.

The companies have reportedly begun discussions with domestic and international suppliers of PR strip equipment and RTP systems as they seek alternative sources. Originally founded as a U.S. semiconductor equipment company, Mattson was acquired by Chinese investors in 2016 before becoming part of Beijing E-Town Semiconductor Technology. The report notes that E-Town is a state-owned investment company under the Beijing municipal government, placing Mattson effectively under Chinese state-owned control.

Although Mattson has not been added to the U.S. Department of Commerce’s Entity List, the report says the possibility of future designation remains. It adds that incorporating equipment or technologies from Entity List companies into the semiconductor supply chain could disrupt exports to the U.S. and other business operations.

The reported shift also mirrors similar steps taken by TSMC. According to Nikkei, sources say the company has excluded Chinese equipment from its 2nm production lines. Chinese equipment previously used in TSMC’s advanced manufacturing included etching tools from AMEC and equipment supplied by Mattson Technology.

Meanwhile, the ETNews report says Mattson’s share of newly installed equipment at Samsung Electronics and SK hynix has recently declined. While some assessments pointed to weaker performance and price competitiveness compared with rivals, industry observers say potential U.S. regulatory risks may also have factored into the decision.

As Chinese suppliers are gradually replaced across parts of the semiconductor equipment supply chain, the report says established global equipment makers—including Applied Materials, ASML, Lam Research, Tokyo Electron (TEL), and KLA—as well as South Korean equipment vendors stand to benefit.

Supply Chain Risk Takes Priority

ETNews also says the supply chain restructuring is expanding beyond semiconductor equipment into components. Suppliers serving Samsung Electronics and SK hynix have reportedly been asked, where possible, to avoid supplying the same products to Chinese semiconductor manufacturers.

As ETNews notes, the head of a supplier providing semiconductor process consumables to both Samsung Electronics and SK hynix said the companies have asked suppliers to exercise greater caution when working with Chinese semiconductor manufacturers. The executive added that the industry’s focus has shifted from technology leakage to supply chain risk management.

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