One would ordinarily think that the US government would approach its relations with China as a strategic conundrum that is to be to sifted through, not bludgeoned; but then this might be a herculean task for an administration that has shown no such inclination or capacity, with its make-up-as-you-go-along stratagem - replete with hefty ad hocism - now producing a bevy of unintended consequences, such as Samsung and SK hynix choosing to populate their China-based fabs with Chinese equipment to insulate those facilities against future US export controls.

According to Reuters, Samsung and SK hynix are currently evaluating chipmaking equipment from China's Advanced Micro-Fabrication Equipment (AMEC) for eventual installation in their respective China-based memory fabs.

AMEC's etching tools, which come at a 20-30 percent discount to their Western counterparts, can allow China-based fabs of Samsung and SK hynix to continue their operations even if the US prohibits these companies from sending Western chipmaking tools into China, thereby serving as a hedge against ratcheting geopolitical tensions and a bifurcation of global supply chains.

For the benefit of those who might not be aware, Samsung operates a NAND flash memory chip fabrication plant in Xian, while SK Hynix operates NAND facilities in ‌Dalian and ⁠a DRAM memory chip plant in Wuxi.

Coming back, do note that Samsung has denied testing AMEC-sourced equipment, with SK hynix also adopting a similar response line, one that is likely meant to take shelter under semantics so as to avoid the ever-roving wrath of the Trump administration.

As a refresher, the US Commerce Department designated the China-based fabs of Samsung and SK hynix as Validated End Users (VEU) in 2023, only to revoke this designation in 2025 and adopt an annual licensing regime, one that is currently valid only through 2026.

Of course, this tidbit comes as the US FCC, which regulates the American telecom sector, is reportedly considering a ban on China-sourced optical transceivers that convert electrical signals into light pulses via an LED, and at the other end of a given fiber optic cable, convert the incoming light into electrical signals via a photodiode.

Meanwhile, the Trump administration is also planning to impose a minimum import price as well as tariffs on polysilicon and its related products sourced from China. The material serves as a key input in the production of solar panels, and acts as the primary feedstock for silicon wafers.

Finally, it's ironic indeed if the Trump administration's efforts to de-risk supply chains from China end up boosting the credentials and profitability of some of China's critical industrial nodes such as AMEC.

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