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Major Chinese technology companies, including Huawei and Baidu, are rapidly acquiring high bandwidth memory (HBM) semiconductors from Samsung Electronics, according to three sources familiar with the matter. This surge in procurement comes as these firms anticipate potential US curbs on exports of these chips to China.
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The accelerated purchasing of AI-capable semiconductors began earlier this year, resulting in China accounting for approximately 30% of Samsung’s HBM chip revenue in the first half of 2024, one source reported.
This development highlights China’s efforts to maintain its technological progress amid escalating trade tensions with the United States and other Western nations. It also underscores the impact of these tensions on the global semiconductor supply chain.
Reuters recently reported that US authorities plan to introduce new export control measures this month, potentially limiting China’s access to high bandwidth memory chips. The US Department of Commerce has not commented on the specific details but stated it continually assesses export controls to protect national security.
HBM chips are critical components in developing advanced processors, such as Nvidia’s graphics processing units used for generative AI work. Currently, only three major chipmakers produce HBM chips: South Korea’s SK Hynix and Samsung, and US-based Micron Technology.
Chinese demand has primarily focused on the HBM2E model, which is two generations behind the most advanced HBM3E version. The global AI boom has led to a shortage of the advanced model.
Various Chinese businesses, from satellite manufacturers to tech firms like Tencent, have been acquiring these chips. Chip design startup Haawking recently placed an order for HBM chips from Samsung, while Huawei has been using Samsung’s HBM2E semiconductors in its advanced Ascend AI chip.
The potential restrictions on HBM sales to China could impact Samsung more significantly than its competitors, who rely less on the Chinese market. Micron has refrained from selling its HBM products to China since last year, while SK Hynix, a major supplier to Nvidia, focuses more on advanced HBM chip production.
This situation illustrates the complex interplay between technological advancement, international trade, and geopolitical tensions in the semiconductor industry. Copy
