Chinese tech majors, together with Huawei and Baidu, in addition to startups, are stated to be stockpiling excessive bandwidth reminiscence (HBM) semiconductors from Samsung Electronics in anticipation of U.S. curbs on exports of the chips to China, three sources acquainted with the matter informed Reuters.
The corporations have ramped up their shopping for of synthetic intelligence-capable semiconductors since early this 12 months, 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 preserve its know-how ambitions on monitor amid rising commerce tensions with the U.S. and different Western nations. They additionally present how the tensions are impacting the worldwide semiconductor provide chain.
U.S. authorities are planning to unveil an export management bundle this month that may impose new restrictions on shipments for China’s semiconductor trade, Reuters reported final week, citing sources.
Those sources additionally stated the bundle is anticipated to put out parameters for proscribing excessive bandwidth reminiscence chip entry. The U.S. Department of Commerce declined to remark however had stated in an announcement final week that it’s frequently assessing the evolving menace surroundings and updating export controls “to protect U.S. national security 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 elements in growing superior processors, similar to Nvidia’s graphics processing items, that can be utilized for generative AI work.
Only three main chipmakers are producing HBM chips: SK Hynix and Samsung in South Korea and Micron Technology within the U.S.
Chinese chip demand has been largely targeted on the HBM2E mannequin, which is 2 generations behind probably the most superior model of HBM3E, stated the sources who’re acquainted with China’s curiosity in HBM. The world AI growth has led to a tightness within the provide of superior fashions.
“Given that its domestic technology development is not yet fully mature, China’s demand for Samsung’s HBM has become exceptionally high, as other manufacturers’ capacities are already fully booked by American AI companies,” stated Nori Chiou, funding director at Singapore-based White Oak Capital Partners.
While it’s onerous to estimate the quantity or worth of the stockpiled HBM chips in China, companies starting from satellite tv for pc producers to tech corporations similar to Tencent have been shopping for them, the sources stated. One of the sources stated that the chip design startup Hawking not too long ago ordered HBM chips from Samsung.
Huawei, in the meantime, has been utilizing Samsung HBM2E semiconductors to make its superior Ascend AI chip, in response to 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 vs HBM rivals
Chinese corporations have made some headway in producing HBM, with Huawei and reminiscence chipmaker CXMT specializing in growing HBM2 chips, three generations behind the HBM3E mannequin, Reuters reported earlier.
But these efforts could possibly be impacted by the brand new U.S. rule.
Restrictions on HBM gross sales to China may have a much bigger affect on Samsung than on its key rivals, which rely much less on the Chinese market, stated the sources who had been briefed on the gross sales.
Micron has avoided promoting its HBM merchandise to China since final 12 months, whereas SK Hynix, whose main HBM prospects embrace Nvidia, focuses extra on superior HBM chip manufacturing, they stated.
SK Hynix stated earlier this 12 months that it’s adjusting manufacturing to increase HBM3E output and its HBM chips had been bought out for this 12 months and virtually bought out for 2025.
Source: www.dailysabah.com