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Sources say Chinese language tech corporations are ramping up the acquisition of excessive bandwidth reminiscence semiconductors from Samsung Electronics in anticipation of US curbs on chip exports to China
Chinese language tech giants together with Huawei and Baidu in addition to startups are stockpiling excessive bandwidth reminiscence (HBM) semiconductors from Samsung Electronics in anticipation of US curbs on exports of the chips to China, three sources stated.
The businesses have ramped up their shopping for of the substitute intelligence (AI) succesful semiconductors since early this yr, serving to China account for about 30% of Samsung’s HBM chip income within the first half of 2024, one of many sources stated.
The strikes present how China is gearing as much as hold its expertise ambitions on observe amid rising commerce tensions with the US and different western nations. In addition they present how the tensions are impacting the worldwide semiconductor provide chain.
US authorities are planning to unveil an export management package deal this month that may impose new restrictions on shipments for China’s semiconductor trade, Reuters reported final week, citing sources.
These sources additionally stated the package deal is anticipated to put out parameters for limiting excessive bandwidth reminiscence chip entry. The US Division of Commerce declined to remark however had stated in a press release final week that it’s frequently assessing the evolving menace surroundings and updating export controls “to guard US nationwide safety and safeguard our technological ecosystem.”
Reuters was unable to find out the main points of the proposed HBM restrictions and the way they might affect China.
HBM chips are essential parts in growing superior processors resembling Nvidia’s graphics processing items that can be utilized for generative AI work.
There are solely three main chipmakers producing HBM chips – SK Hynix and Samsung from South Korea and US-based Micron Expertise.
Chinese language chip demand has been largely centered on the HBM2E mannequin, which is 2 generations behind essentially the most superior model HBM3E, stated the sources who’re accustomed to China’s curiosity in HBM. The worldwide AI growth has led to a tightness in provide of the superior mannequin.
“Provided that its home expertise growth is just not but absolutely mature, China’s demand for Samsung’s HBM has turn into exceptionally excessive, as different producers’ capacities are already absolutely booked by American AI corporations,” stated Nori Chiou, funding director at Singapore-based White Oak Capital Companions.
Whereas it’s exhausting to estimate the quantity or worth of the stockpiled HBM chips in China, companies starting from satellite tv for pc producers to tech companies resembling Tencent have been shopping for them, the sources stated. One of many sources stated chip designing startup Haawking lately ordered HBM chips from Samsung.
Huawei, in the meantime, has been utilizing Samsung HBM2E semiconductors to make its superior Ascend AI chip, in line with one of many sources.
Samsung and SK Hynix declined to remark. Micron, Baidu, Huawei, Tencent and Haawking didn’t reply to requests for remark. The sources didn’t want to be named as a result of sensitivity of the topic.
Samsung versus HBM rivals
Chinese language companies have made some headway in producing HBM, with Huawei and reminiscence chipmaker CXMT specializing in growing HBM2 chips, that are three generations behind the HBM3E mannequin, Reuters reported earlier.
However these efforts might be impacted by the brand new US rule.
Restrictions on HBM gross sales to China might have a much bigger affect on Samsung than its key rivals which rely much less on the China market, stated the sources who have been briefed on the gross sales.
Micron has kept away from promoting its HBM merchandise to China since final yr, whereas SK Hynix, whose main HBM clients embrace Nvidia, focuses extra on superior HBM chip manufacturing, they stated.
SK Hynix stated earlier this yr it’s adjusting manufacturing to broaden HBM3E output and its HBM chips have been offered out for this yr and nearly offered out for 2025. – Rappler.com
