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Three sources claimed Chinese IT giants Huawei, Baidu and startups are stockpiling Samsung Electronics HBM semiconductors in anticipation of U.S. export restrictions to China.
Since early this year, the businesses have bought more AI-capable chips, helping China account for 30% of Samsung’s HBM chip revenue in the first half of 2024, one source said.
China is preparing to maintain its technology goals amid escalating trade tensions with the U.S. and other western nations. They also highlight how tensions affect the worldwide semiconductor supply chain.
Reporters reported last week that sources said the U.S. will publish an export control package this month that will hinder China’s semiconductor industry.
Those sources also indicated the package will set limits for preventing high-bandwidth memory chip access. The U.S. Department of Commerce declined to comment but said last week it is constantly analyzing the threat environment and upgrading export rules “to protect U.S. national security and safeguard our technological ecosystem.”
Reporters could not establish how the proposed HBM limits would affect China.
HBM chips are essential to building advanced processors like Nvidia’s generative AI GPUs.
Only SK Hynix, Samsung, and Micron Technology create HBM chips.
Sources familiar with China’s HBM interest stated chip demand has been mostly centered on the HBM2E model, two generations behind the most advanced HBM3E. The advanced model is scarce due to the worldwide AI boom.
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